RICHMOND — Virginia Gov. Ralph Northam (D) on Tuesday called for eliminating the state tax on groceries, cutting the income tax for low-income working families and sending one-time rebates to all state taxpayers.

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       Northam’s proposals are part of a package of tax cuts that he will include in his final state budget plan, which he is set to unveil in full on Thursday.

       The cuts, which come at a time of historic surges in state revenue and budget surpluses, are generally in line with calls for tax relief from Gov.-elect Glenn Youngkin (R), who takes office Jan. 15. In an email, Youngkin spokeswoman Macaulay Porter said the cuts were “a step in the right direction,” but don’t go far enough, noting that Youngkin has called for other tax cuts as well, including across-the-board reductions in personal income tax. “We appreciate the Northam administration laying the foundation for these elements of the Day One game plan so that Governor-Elect Youngkin can hit the ground running on January 15th to begin executing on his key campaign promises and finish the job.”

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       But Northam made clear that he is targeting his cuts at working-class and low-income families who have been hardest-hit by the economic struggles caused by the coronavirus pandemic.

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       “When Virginia cuts taxes next year it should be done in a way that benefits working people,” Northam said in a news release. “Many professionals moved through the pandemic fine as their work simply moved online. But workers haven’t been so lucky when their job requires close contact with other people. Some jobs simply can’t move online — restaurant workers, early childhood educators, home care attendants, and others — and we all depend on the people who do this work.”

       Incoming House speaker Todd Gilbert (R-Shenandoah), who will take the reins with a new Republican majority in the House of Delegates when the General Assembly convenes Jan. 12, had a brief response to Northam’s announcement.

       “Now we know what it takes to get Virginia Democrats to propose cutting taxes — losing to a Republican,” he said via email.

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       Northam’s plan calls for scrapping the state portion of the grocery tax, which amounts to 1.5 percent. Localities add another 1 percent, which would not be affected by this proposal.

       Youngkin, who campaigned on cutting the grocery tax, had recently called on Northam to include the measure in his budget proposal. Northam has pointed out that he ran on partially cutting the grocery tax in 2017, although he never pushed the measure through the General Assembly.

       Northam’s other proposals include one-time “economic growth” rebates of $250 for individual taxpayers and $500 for couples filing jointly. The state issued slightly smaller rebates in 2019 of $110 for individuals and $220 for couples.

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       His budget plan also calls for refunding up to 15 percent of the federal earned income tax credit for working families who qualify. Currently, low- and middle-income working families can use the credit to reduce their tax burden, up to a certain amount based in part on family size. Northam’s proposal, similar to one he made in 2019, would send money back to qualifying families in addition to reducing their taxes.

       Northam unveils budget plans with increases for Black universities and teacher raises

       Last week, Northam previewed spending proposals that will be in his budget plan. Those include pay raises for teachers and law enforcement personnel; extra money for historically Black colleges and universities; and increased spending on outdoor recreation.

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       Like all Virginia governors, Northam is prohibited by the state’s constitution from serving a second consecutive term. But he must put together the next two-year spending plan, leaving it for his successor — Youngkin — to navigate through the General Assembly.

       Youngkin will have to craft bipartisan deals; Republicans are set to wield a 52-48 majority in the House, but the Senate remains controlled by Democrats, 21-19.