Monday, March 25, 2024

Derrick Max, Thomas Jefferson Institute for Public Policy: Tell Governor Youngkin to Veto the $1B Digital Tax Now!

Tell Governor Youngkin to

VETO the business-to-business digital tax!


Send Governor Younkgkin an email at: glenn.youngkin@governor.virginia.gov

Or call Governor Youngkin at: (804) 786-2211


The Virginia General Assembly passed a new $1 billion digital business-to-business (B2B) tax in the budget they sent to Governor Youngkin. 


  • This tax passed without a single hearing. 


  • This tax passed without any economic analysis.


  • This tax passed with zero input from the business community, or citizens. 


This new digital tax would undo Virginia's long history of exempting business-to-business (B2B) taxes from the sales tax -- an exemption that almost every other state has in its tax code.  Thus it makes Virginia much less competitive with its neighboring states.


Tell Governor Youngkin to veto this terrible digital tax, both for its negative impact on the Commonwealth and for the troubling way in which it was passed. Let Governor Youngkin know that this tax:


  • will pyramid sales taxes upon sales taxes making every item you purchase more expensive.


  • will be burdensome to small businesses who will have to collect and distribute this tax. 


  • will increase the flood of businesses moving away from Virginia to neighboring lower-tax states!  


Send Governor Younkgkin an email at: glenn.youngkin@governor.virginia.gov

Or call Governor Youngkin at: (804) 786-2211


The message to the Governor is simple, either veto that section of the budget or the entire budget, with a clear message that the digital b2b tax is not acceptable in any future version of the budget that is negotiated.


Over the last two weeks, the team at the Thomas Jefferson Institute has written extensively on the dangers of this new tax, and why it should be vetoed. Here are the links:


This new digital B2B tax is regressive and will hurt the poor the most.


This new digital B2B tax is too complicated for Delegates (and most non-accountants) to even understand.


This new digital B2B tax was passed without any hearings or debate.


This new digital B2B tax is bad for business and should be vetoed.


This new digital B2B tax is bad for innovation and the tech industry.


Business-to-business transactions were always exempt from sales taxes, under the budget sitting on Governor Youngkin's desk, that exemption is now gone!  


Tell Governor Youngkin to veto this terrible digital tax now!


Send Governor Younkgkin an email at: glenn.youngkin@governor.virginia.gov

Or call Governor Youngkin at: (804) 786-2211