Senate Finance Rejects Tax Relief for Families

Last week the Senate Finance and Appropriations Committee, led by its influential chairwoman Louis Lucas (D-18, Portsmouth) and arguably the most powerful committee in the General Assembly, met for the first time during the 2026 session and immediately dealt a blow to making life more affordable for Virginians. It was more than ironic considering the Democrat majority’s emphasis on “affordability” during the recent campaign.

But there it was – on a straight party line vote, both in subcommittee and in the full committee that immediately followed.  They voted to kill a tax relief bill, SB7, introduced by Senator David Suetterlein (R-4, Roanoke) that would have made permanent the recent increase in the standard deduction for the state income tax of $8,750 for individuals and $17,500 for married couples filing jointly (under current law, the deductions will revert to $3,000 and $6,000, respectively). In essence, the 9-member Democrat majority voted for a massive tax increase on families.

But before anyone can say “tax the rich,” the same bill also removed the sunset provision on the commonwealth’s Earned Income Tax Credit, a provision that immensely helps the working poor. The tax credit now will revert to 15 percent from the previous 20 percent.

The committee also killed SB9, another bill from Senator Suetterlein that would have repealed the remainder of the regressive sales tax on groceries. Just to drive the point home, committee Democrats also killed SB143, from Senate Ryan McDougle (R-26, Hanover County), that would have eliminated the tax on overtime pay. Sorry, working class!

However, Senator Lucas did make a bombshell – and very much appreciated – announcement. This session, patrons who offer substitutes for their introduced bills will have them taken up at the next meeting. No more offering a 10 page substitute of the original bill and expecting committee members to digest it and vote on it in the next five minutes. 

This may be the most significant transparency rule since former House Speaker Bill Howell required a 48 hour period between the final budget bill and its House vote.  In addition, patrons may only have bills passed by for the week (a request to delay its introduction and committee’s consideration) one time or risk it not getting considered at all. Other committees have made some reforms as well, such as requiring that amendments to introduced bills be filed 24 hours before committee meetings. 

Of course, we'll see if they mean what they say.  Nevertheless, we thank the leadership of such committees and continue to urge full and uniform transparency across all General Assembly committees this session and in the future.