Richmond, Va. (Newsradiowrva.com) - The House of Delegates Finance Committee has rejected a Democratic proposal to offer Virginia car owners a $50 rebate rather than suspending the state gas tax. The Committee instead went with the three month suspension, which is favored by Governor Glenn Youngkin (R).
The meeting was contentious, with Democrats arguing the procedure was being rushed. Democrats maintain suspending the gas tax may not lead to any savings, and that it isn't targeted to just Virginians like their rebate was. They also raised concerns about the impact on transportation revenue.
The Governor and Republicans argue there is a surplus to cover the revenue decrease. The Governor estimates the savings could be around $0.26 per gallon. The debate over tax cuts is what is holding up the state budget, as lawmakers cannot determine what to spend if they do not know how much money they have. A budget needs to be passed by July 1st.
