Northam proposes $250 rebate for taxpayers and gets rid of grocery tax

State of Virginia has seen record financial reserves of nearly $4 billion. Governor Northam is now proposing $250 tax rebates for all individual tax filers in Virginia and eliminating the Commonwealth grocery tax. Northam justified his proposal by claiming that he wanted all Virginians to benefit from the Commonwealth’s strong economic growth, which showed a record surplus of $2.6 billion this year. Northam also emphasized that the lower and middle-income families will see greatest benefit with the $250 rebate and the end of the 1.5% grocery tax.

Northam had called for the end of grocery taxes in 2017. However, he had not made this possible until now. Youngkin, who is to become the next Governor, also campaigned for these reforms.

The nearly $4 billion reserve surplus is nearly 17 percent of the state revenue and is attributed to better than expected revenue growth, federal pandemic assistance and cautious spending. Northam also called for 10% raise for public school teachers, investment in public safety, and millions of dollars for historically black colleges and universities among many others in his 2022 proposed budget.

Youngkin’s transitional aide has expressed generally positive views on Northam’s moves, but also called it “a step in the right direction but not entirely fulfilling.”

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