Virginians are getting some of their hard-earned money back, thanks to the 2024 budget that Gov. Glenn Youngkin (R-VA) recently signed into law. The budget includes one-time tax rebates of $200 for individuals and $400 for joint filers, most of which were completed last week.

But the final 2024 budget can be considered a success for reasons that go beyond the tax rebates. In an effort to combat the effects of over-taxation from fiscal 2022, the Virginia legislature also chose to increase the standard deduction from $4,500 to $8,000 for single filers and from $9,000 to $16,000 for married filers who filed jointly. This will benefit all taxpayers and excludes more of what they earn from being taxed.

These tax changes will help attract residents to the state and bolster Virginia’s growing economy. Under Youngkin’s pro-growth leadership, Virginia truck and rental companies are already beginning to see an uptick in migration to the state, a sign of approaching economic growth. U-Haul, for example, reports that Virginia had the fifth-highest total of one-way rentals going into the state last year, up from No. 31 in 2021. And with a commitment to holistic and strategic tax reform, Virginia could rise from its No. 2 ranking on CNBC’s “ Top States for Business ” list and replace neighboring North Carolina in the top spot.

But first, more needs to be done to reduce the tax burden for Virginians both now and in the future. Legislators ought to consider reducing Virginia’s current graduated personal income tax, which poses the largest threat to families already suffering from high inflation. If legislators reduce the top PIT rate from 5.75% to just 5.5%, as Youngkin recently proposed, it would save taxpayers roughly $333 million in fiscal 2024.

Putting all major tax policies in the budget could help. Legislators would see the complexity and other shortcomings more clearly, and they’d be better positioned to reduce rates and clean up the code every year.

Tax rate triggers are yet another mechanism that could reduce the PIT rate by decreasing it only after state revenue reaches a certain level. This would promote responsible government spending and save taxpayers more of their hard-earned money.

With inflation on the rise, lawmakers must pursue every avenue of meaningful tax reform for their constituents. Using well-designed economic triggers over time to bring Virginia's tax rate to a flat 4% would make it the lowest of our neighboring states that have a PIT. Further responsibly increasing the standard deduction could also provide tax relief for all Virginians.

One additional reform that could help keep local property taxes in check is Truth in Taxation. This program, when structured appropriately, has been used in Utah and Kansas to transparently and appropriately constrain property tax growth.

This relief is needed more than ever. Inflation rates continue to eat into Virginians’ wallets, thanks to President Joe Biden’s record spending spree and restrictions on domestic energy production. Several statistics show the destructive impact of Biden’s policies and the need for further tax relief: Since Biden was elected, the cost of living has increased by 17% , real wages are down 3% , and 61% of people say they are experiencing a major financial hit due to rising interest rates.

Meanwhile, the unemployment rate is higher than it was pre-COVID , and the labor force participation rate is lower than it was when the pandemic reached our shores, meaning that hundreds of thousands of able-bodied people have simply quit the workforce.

It’s fortunate that Virginia lawmakers championed some tax relief in their 2024 budget. But during this coming term, the General Assembly must press forward with larger and more meaningful tax reform. Fully overhauling the Virginia tax code, both on the individual and corporate levels, will bolster our economy and enable more Virginians to reach their fullest potential.

C.J. Sailor is state director for Americans for Prosperity-Virginia.