ROANOKE, Va. (WDBJ) – Governor Glenn Youngkin poured the coffee and served up his latest tax proposal Monday during the breakfast rush at McLean’s Restaurant on West Broad Street in Richmond.
After the governor and lawmakers delivered over $5 billion in tax relief during the first three years of his administration, Youngkin said robust revenues mean there’s room for more.
He announced he will propose a budget amendment to exempt service tips from Virginia’s state’s income tax. “And this is a way for us to give them a raise. This is a way for them to keep more of their hard-earned money in their pocket,” Youngkin told reporters. “And for us to move forward with no tax on tips goes directly to supporting hard-working Virginians that I believe need substantial support.”
In a news release, the Governor’s Office said the proposal would provide about $70 million in tax relief to about 250,000 Virginians – people who work in restaurants, the hospitality industry and personal services such as hair salons, and who routinely receive tips from customers.
It remains to be seen how ‘no tax on tips’ will fare in a General Assembly with many competing priorities, but a partisan crowd and the people who work at McLean’s needed no convincing. “I think it’s just great, because it’s just something that someone gives you. It is a gift for your service,” said McLean’s owner Dionna Kelleher. “I don’t think the government needs to be in it at all.” “That’s amazing. That’s really going to make a difference in all of our lives,” said server Elaine Cunningham. “Definitely add a lot to our pocket. It’s going to be nice. Life-changing.”
Youngkin is expected to reveal a budget surplus exceeding $3 billion, when he delivers his budget amendments to the General Assembly money committees on Wednesday morning.
We’ll be watching to see if there are other tax relief proposals beyond the $70 million plan he outlined Monday.
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