A new survey of Virginia business leaders found that smaller companies worry about the strain legislative proposals could place on their livelihoods, and believe elected officials are out of touch with local economic needs.
Exactly 50% believe state legislators and policymakers in Richmond do not understand local business operations, according to a quarterly survey of business owners and corporate executives conducted by the Northern Virginia Chamber and Pinkston. They fear that a slate of progressive-leaning proposals debated in Richmond could harm their operations, including pushes to expand taxes, increase the minimum wage, and grow union power.
The Northern Virginia Chamber, which represents around 500,000 employees, called on the state’s new leader, Gov. Abigail Spanberger (D-VA), to make her term one that addresses fears and revitalizes the local economy.
“This is her opportunity to take these bills from the General Assembly, put her stamp on them, work with us and the business leaders, work with the business community, and work with state legislators to really forge a new path with the Virginia economy,” Clayton Medford, NVC’s Senior Vice President of Government Relations, told the Washington Examiner.
“There’s real pessimism around the economy, and not many business leaders feel that they have friends in the government right now, so she can be that friend,” Medford added.
Regarding how they expect their companies to perform over the next six months, business leaders were fairly positive. Forty-eight percent said they are somewhat optimistic, compared to 11% that were somewhat pessimistic, while 58% reported that President Donald Trump’s tariff policies have had no impact on their personal companies.
However, that outlook downgrades when pressed on expectations for the broader NOVA economy. Respondents appear to be preparing for a period of stagnation, with the biggest chunk of those surveyed, 34%, saying they believe the area’s economy will remain the same over the next six months.
Medford said economic concerns are rooted in the major shift away from federal jobs in the state. Last year, the Trump administration targeted thousands of government positions based in Virginia.
Medford said the development made it all the more essential for policymakers to create a more business-friendly environment that helps residents rebound. Steering clear of tax hikes and addressing concerns about regulations, housing, and transportation will help the region avoid economic stagnation, he said. It is also critical that officials support efforts to diversify the economy to fill the vacuum created by the shift away from federal jobs, Medford argued, pointing to NVC’s roadmap that supports the expansion of data centers and other emerging sectors to “prepare the workforce for tomorrow’s jobs.”
In the survey, the highest margin of business leaders, 49%, expressed concern over several proposed tax increases debated over the past session that will likely be revived for debate. The “dog walking tax” bill, as it has been described by critics, would expand the sales tax to include some services. Business owners particularly noted three other priorities examined by state legislators. Twenty-seven percent cited concern over the repeal of right-to-work regulations, which would boost unions, as the single measure that would most hamper their company’s ability to grow; 18% said the same of the proposed creation of a new tax bracket for high-earning individuals, branded as the “millionaire’s tax.”
Democrats have defended the proposed hikes, branding them as measures to make the rich “pay their fair share” of taxes. Medford warned that if enacted, the hikes could lead to a wealth exodus from Virginia, marking a significant long-term loss for the state. Businesses already pay property taxes, and are grappling with transportation and housing costs, he said. Adding more fees would negatively impact their ability to operate.
“Everyone has a breaking point, and I don’t want to push them to that. So I would caution against the idea that, well, these people can afford it, therefore we can just tax them and spend the money elsewhere,” Medford said. “The people that can afford to pay a little bit more, can also afford to change. They can afford to pick up and move.”
“Reducing taxes is the top concern, because that’s some of the biggest costs that local businesses have, is their property taxes,” he added. “Housing, transportation, regulations, taxes, those are perennial concerns for business leaders in this region. I don’t think there’s anything new just with those being the concerns, but I think what is new is that pessimism around the stagnation of the economy is really about what’s happening at the federal level, and those effects are really starting to be seen now you see the reduction in jobs in the state, and the predictions for that to continue this year.”
Between March 23 and 30, the Northern Virginia Chamber of Commerce and Pinkston surveyed 210 CEOs, corporate executives, and business owners across the greater Washington, D.C., region on their economic outlook and policy priorities, as a quarterly evaluation of economic sentiment in the region. The majority of companies surveyed hold under 49 employees, see annual revenues of under $10 million, and are based in Fairfax, Loudoun, Prince William, and Arlington counties, as well as in the independent cities of Alexandria and Falls Church. While those surveyed were dominantly smaller businesses, the report included feedback from Fortune 500 companies.
Nine Northern Virginia–based chambers of commerce contributed to the report, including Northern Virginia Chamber, Alexandria Chamber of Commerce, Arlington Chamber of Commerce, Central Fairfax Chamber of Commerce, Falls Church Chamber of Commerce, Greater Reston Chamber of Commerce, Loudoun County Chamber of Commerce, Mount Vernon Springfield Chamber, and Prince William County Chamber of Commerce.
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Medford called on the state to work with the chambers to create a business-friendly environment during Spanberger’s tenure.
“We need government to help businesses grow,” he said. “This is the time for state policymakers like the governor to help businesses grow, not places for mandates and new taxes, and take away that friend of government. Be that friend of business, and help us grow, because it’s bad for the people who live here, who want more jobs here, if the economy doesn’t grow.”
