USA: Governor’s Budget Amendments and Tax Policy Debate
Governor Glenn Youngkin plans to amend the state budget, proposing over 200 amendments that would eliminate the extension of the sales tax to digital goods such as streaming services.
Youngkin aims to find common ground with legislators, advocating against new taxes or reductions, while expressing frustration over compromise as he sought additional tax cuts.
He emphasizes maintaining the current economic model while ensuring fiscal responsibility. Lawmakers reconvene today (on April 17) to address the proposed changes, following last month’s approval of a budget expansion.
The expansion aimed to address a “big tech tax loophole,” extending the sales tax base to cover digital goods, including business-to-business transactions for software applications, despite resistance from business organizations citing potential financial burdens.
