Virginia Governor Considers New Taxation Options
In a recent interview, Virginia Governor Abigail Spanberger was asked about the potential for taxing services such as gym memberships, digital subscriptions, and dog grooming. She seemed open to the idea, stating, “I think all ideas should be discussed as long as they’re reasonable and make some sense.”
Spanberger emphasized that valuable discussions around future revenue generation are essential as the economy continues to evolve. This comes amid criticism from the White House, which has framed her as a Democrat willing to increase taxes while also exploring new revenue sources for Virginia.
Former President Trump criticized Spanberger, claiming, “It’s so sad! She’s adding so many taxes, food and beverage taxes, digital services taxes, utilities, etc. People who never thought about that are leaving!” He expressed concern about Virginia’s shift from a prosperous state to one governed by those who don’t prioritize low taxes or economic strength.
The backlash stems from several bills that the Virginia General Assembly has considered. If passed, these bills would impose taxes on a variety of services including storage facilities, counseling, dry cleaning, auto repair, website design, and data services. Notably, these proposals were initially introduced during the tenure of Spanberger’s predecessor, Gov. Glenn Youngkin, but never made it to a vote.
Despite these challenges, Spanberger has yet to approve any new state-level tax increases, except for a bill gradually raising the minimum wage to $15 an hour by 2028—a record she feels Trump is misrepresenting. She remarked, “The set of taxes that the president says he’s going to push forward in Virginia are kind of ridiculous.”
However, Spanberger acknowledged that a reassessment of how to generate revenue is necessary due to evolving industries. “We used to buy DVDs. We used to have a sales tax. Streaming is different. So I see the value in having these conversations,” she noted, highlighting changing consumer behaviors.
Ultimately, Spanberger indicated that her decisions regarding new tax proposals would hinge on the specific language and details of each bill, saying, “Whether I sign the bill or not depends entirely on the actual content of the bill and its outline.”
