Northam finance secretary turned Youngkin advisor says tax cuts are affordable

The governor-elect of RICHMOND, Virginia (WRIC), Glenn Youngkin, promised major tax cuts and a booming economy during the election campaign. With the shift in power now underway, former Treasury Secretary of Governor Ralph Northam, Aubrey Layne, is among those advising Youngkin on how to turn those promises into reality.

Layne, who recently returned to the private sector, was one of more than a dozen people appointed to Youngkin’s transitional steering committee earlier this week. He plans to help Youngkin, who has never held an elected office, cope with the state government’s bureaucracy.

“I see this as a service to the Commonwealth, not a political statement,” Layne said. “He’s our governor and all of Virginia should want him to be successful.”

Prior to retiring from the Northam administration, Layne oversaw the state’s economic downturn and recovery from the coronavirus pandemic.

In an interview, Layne rejected Youngkin’s claim that the Democrats had driven the state’s economy into the ditch. He said Virginia avoided cutting services during immense financial uncertainty and came out with a record budget surplus.

“Of course, a lot of things are said in campaigning to get voters’ attention, and it’s probably somewhere in between,” Layne said. “I think the Commonwealth did some things well.”

Layne, who also served as Secretary of Transportation as former Governor Terry McAuliffe, denied the Democratic candidate’s claim that Youngkin’s proposals would result in severe cuts in education and law enforcement budgets.

Youngkin’s “Day One Game Plan” includes the suspension of the latest gas tax hike for 12 months, the abolition of the food tax, the doubling of the standard allowance and the exemption from taxation of part of the veteran’s retirement pension.

“They are certainly affordable based on the growing revenue and the path of the Commonwealth, and I would like to point out that there will be no cuts,” Layne said, noting that the tax cuts could prevent additional investment in other areas. “Only in government do we say that we are cutting something because we are not adding as much as someone else would like.”

Youngkin also plans to provide a one-time tax rebate of $ 600 for joint applicants and $ 300 for individuals. Layne said there was a precedent for that.

“The Commonwealth has a lot of money. It’s had a good year plus all the impetus. It’s going to be hard for a Republican or a Democrat not to share some of that with taxpayers, ”Layne said.

While believing the economy is now headed in the right direction, Layne said there are many challenges ahead. He said Youngkin needs to further diversify Virginia’s economy, build a more resilient workforce, bring back jobs lost during the pandemic, and maintain stability once the federal stimulus dollars are gone.

The founder and CEO of Mangum Economics, Fletcher Mangum, has in the past been appointed by both parties to the joint economic advisory board of the governor and the general assembly.

During the pandemic, Mangum said Virginia initially didn’t lose as many jobs as some other states because it relied on government employment and professional business services that could be done remotely.

However, according to Mangum, Virginia appears to be lagging behind other states in recovery as the Commonwealth ranks 47th in year-over-year employment growth. While the unemployment rate is relatively low, Mangum said the labor force participation rate has fallen, so fewer people are looking for jobs.

“Pretty much everyone is in the ditch, so the question is how deep in the ditch you are compared to everyone else,” said Mangum. “I think we’re behind.”

Northam finance secretary turned Youngkin advisor says tax cuts are affordable