Old Dominion News

NFIB State Director Julia Hammond expressed approval for the General Assembly's decision to pass state budget proposals aimed at alleviating financial burdens on Virginia's small businesses.

"Small business owners already face enough economic uncertainty," Hammond stated. She noted that while the "House and Senate versions of the budget are different, both chambers agreed that extending the standard education will provide much-needed tax relief, allowing them to reinvest in their businesses and communities."

The current standard deduction stands at $17,000 for couples and $8,500 for individuals. Without intervention from legislators, it risks reverting to 2018 levels, potentially increasing costs by approximately $600 annually for Virginians. In Virginia, many small businesses operate as pass-through entities. This structure means their revenue flows directly to the owner, who is taxed at an individual rate.

Hammond emphasized the importance of this initiative: "Small business is the foundation of Virginia’s economy," she said. "Keeping taxes predictable and manageable is key to their success. We applaud the General Assembly for considering the impact that extending the standard deduction would have on small business owners and other taxpayers."