Northam finance secretary turned Youngkin advisor claims tax cuts are affordable

RICHMOND, Va. (WRIC)-Governor-elect Glenn Youngkin promised large tax cuts and a booming economic climate on the marketing campaign trail. With the transition of electric power now underway, Gov. Ralph Northam’s former Finance Secretary Aubrey Layne is between individuals advising Youngkin on how to transform individuals promises into a reality. 

Layne, who not too long ago returned to the personal sector, was one particular of far more than a dozen men and women named to Youngkin’s transition steering committee before this week. He programs to assistance Youngkin, who has never ever held elected workplace, navigate the forms of point out government. 

“I’m on the lookout at this as a provider to the Commonwealth, not a political assertion,” Layne reported. “He’s our governor and all of Virginia ought to want him to be prosperous.”

In advance of leaving the Northam Administration, Layne oversaw the state’s financial downturn and restoration from the coronavirus pandemic. 

In an interview, Layne pushed back on Youngkin’s declare that Democrats ran the state’s overall economy into a ditch. He claimed Virginia prevented chopping products and services during enormous financial uncertainty and emerged with a file funds surplus. 

“Of program a good deal of issues are claimed on the campaign path to get the voters’ awareness and it is likely someplace in involving,” Layne reported. “I imagine the Commonwealth has finished some things nicely.”

Layne, who also served as former Gov. Terry McAuliffe’s Transportation Secretary, disputed the Democratic nominee’s declare that Youngkin’s proposals would direct to significant cuts in schooling and legislation enforcement budgets.

Youngkin’s “Day A person Activity Plan” contains suspending the most current fuel tax maximize for 12 months, doing away with the grocery tax, doubling the regular deduction and exempting a part of veterans’ retirement shell out from taxation. 

“They certainly are affordable centered on the increase in the revenues and where by the Commonwealth is going and I want to point out there will not be any cuts with this,” Layne stated, noting that the tax cuts may perhaps reduce additional investments in other areas. “Only in govt do we say we are reducing a thing because we aren’t including as a lot as someone else would like.”

Youngkin also needs to present a one particular-time tax rebate of $600 for joint filers and $300 for men and women. Layne mentioned there is precedent for that. 

“The Commonwealth has a great offer of funds. It had a very good calendar year plus all of the stimulus. It is likely to be tough for a Republican or a Democrat not to share some of that with taxpayers,” Layne said. 

Whilst he believes the financial state is relocating in the ideal course now, Layne claimed several challenges lay in advance. He said Youngkin requirements to further diversify Virginia’s economy, establish a extra sturdy workforce, provide again work opportunities misplaced in the course of the pandemic and maintain balance as soon as federal stimulus bucks are long gone. 

Mangum Economics Founder and CEO Fletcher Mangum has been appointed by the two functions to the Governor’s and Standard Assembly’s Joint Advisory Board of Economists in the previous.

During the pandemic, Mangum reported Virginia initially did not drop as a lot of employment as some other states owing to its reliance on government work and skilled business enterprise providers that could be done remotely. 

Nonetheless, Mangum says Virginia now appears to powering other states in the recovery as the Commonwealth ranked 47th for year-over-calendar year employment progress. While the unemployment charge is reasonably lower, Mangum claimed labor force participation is down so a lot less folks are looking for work opportunities.  

“Pretty a lot everyone is in the ditch so the query is how deeply are you in the ditch relative to absolutely everyone else,” Mangum said. “I think we’re trailing.”