Virginia Democrats are wasting no time proposing a huge tax increase on Virginians by slapping a 5 percent tax on virtually every service in the commonwealth–despite the state’s budget surplus. Vivian Watts has proposed a massive tax increase that would hit small businesses, tradesmen, such as electricians, plumbers, landscapers and barbers.

If HB 1755 is passed, Virginians would be forced to pay more when it comes to dry cleaning, vehicle repairs, sporting events and nutrition services.

Virginia has already been ranked a pitiful 28th in the State Tax Competitivity Index. This index ranks states according to their taxation competitiveness, such as sales tax, income tax and property tax. Virginia’s ranking will drop further if Democrats have their way. Virginia’s state tax is among the lowest in the country, and it is also one of few states to tax its citizens via a vehicle personal property tax.

Tim Anderson, former Virginia Delegate and candidate for reelection to Virginia’s 97th House district. He commented on HB1755 and said, “Services in Virginia have never been taxed, and despite Virginia’s record surpluses in each of the last 3 years, Democrats are trying to take money from Virginians in order to fund progressive causes like the electric vehicle mandate.” Anderson expressed his concern about the impact of a tax hike, saying, “With inflation crushing Virginians’ pocketbooks at grocery stores, out-of-touch Democrats think that the best thing to be doing is taking more of your money.”

The two parties have a stark difference

Republicans are proposing lower taxes while Democrats want higher taxes. Glenn Youngkin has been leading the charge to provide tax relief to Virginians. Governor Youngkin would like to return this surplus to taxpayers in the form of tax relief. His proposal eliminates tax on tips and creates a credit for car owners. It is a nod towards President Trump’s plan of helping the food service industry.

The average national cost to maintain an apartment is estimated at $6 413. If Democrats have their way, this will increase in Virginia by $320. This tax will have a negative impact on tradesmen, who are already struggling to make ends meet in a high inflation economy. A homeowner who is charged an extra 5 percent on their bill will definitely think twice before delaying a repair. Home improvements, such as a bathroom renovation, may be reconsidered if every tradesman must add an additional 5 percent to the quote.

Watts’ bill mentions taxation of event attendance. The cost of attending a sporting or concert event is already high for many, and a tax on attendance would make it even more expensive for those who are already struggling to pay their bills.

Virginia’s 30-day legislative session for 2025 will begin on Wednesday, 8th January. Restoration News will cover other radical proposals from the Democrat controlled General Assembly.

This article first appeared on Democrats demand massive tax hike on Virginians