ALEC Action Testimony on Virginia Income Tax Reduction

Virginia risks falling behind by standing still on tax policy.

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February 5, 2024 3:03 pm

ALEC Action‘s Lee Schalk delivered the following testimony on HB 1281 to the Virginia House Finance Subcommittee:

Americans are voting with their feet — moving across state lines in search of economic opportunity.

They’re not moving to Virginia.

Census Bureau data reveals that low tax states like Florida and North Carolina are booming, while high tax California, New York, and New Jersey are losing residents rapidly.

To become more competitive and attract new taxpayers and job creators, 22 states have lowered their income taxes in the past 3 years.

States like Virginia risk falling behind by standing still.

Unfortunately, Virginia has lost nearly 135,000 residents on net over the past 10 years – more than 60,000 to North Carolina.

A decade ago, North Carolina flattened and lowered personal income tax rates. Since then, the state has gained more than 660,000 new residents. Now, they are moving to lower state income taxes even further.

Meaningful income tax reductions would help Virginia compete – and make our state a better place to live, work, start a business, and raise a family. Thank you.