Virginia is on the verge of its first shutdown in modern history, and it all comes down to data centers and Democratic Party infighting. Democrats control the governor’s mansion, the state Senate, and the House, yet the party can’t get on the same page.
“Virginia has to have a budget by June 30,” Republican Virginia state Sen. Glen Sturtevant told The Daily Signal. After fighting for “several months” on the budget, state leaders are locking horns over data centers and increasing taxes.
“If there’s an actual shutdown and there’s no money appropriated, you know teachers aren’t getting paid, cops aren’t getting paid,” Sturtevant continued.
Sturtevant explained that the Senate, including many Democrats, wants to eliminate the 20-year-old tax break for data centers that currently costs Virginia $2 billion a year that has to be made up for by taxing Virginians. House Democrats and Democrat Gov. Abigail Spanberger want to keep that tax break in place, protecting the data centers.
“I am somebody who thinks we need to get rid of the data center tax break, because I don’t think we need to be giving $2 billion a year to huge AI big tech firms,” Sturtevant continued. “It’s ultimately Virginians who pay for that in higher electric bills.”
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Data centers have taken over Virginia in recent years. Eighty-eight have already been built, and 100 more have been approved and begun construction. Sturtevant says they have “worn out their welcome.”
“It’s in my view that they don’t all need to be built in Virginia. There are 49 other states where they can build them. We’ve kind of done our fair share,” Sturtevant said.
Twenty years ago, the tax break was put in place to support and grow Virginia, creating jobs and bringing new technology to the commonwealth. Thanks to the tax break and the industry growing, Sturtevant says these are “the largest, most profitable, wealthiest companies in the world,” who no longer need a tax break incentivizing them to build in Virginia.
Now the centers cost Virginians billions. “In order to pay the teachers and pay the police and pave the roads, that extra money in many respects has to be made up by average everyday Virginians by paying higher property taxes, sales taxes, and income tax.”
The Virginia House has presented its budget, with support from the governor, which includes this tax break. But overall, Sturtevant says, “it’s bad” and “there’s a lot to be concerned about.”
In addition to the tax break, House Democrats are pushing for a 150% salary increase for state legislators and a recreational marijuana policy “which will basically turn Virginia into like a Colorado or California having a pot shop on every corner,” the senator told The Daily Signal.
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