A new proposal in Virginia could significantly reshape the state’s tax system, as lawmakers consider adding a 10% income tax on millionaires to help fund public education, child care programs, and affordable housing initiatives.
The proposal, known as House Bill 188, was introduced by Virginia Beach Delegate Kelly Convirs-Fowler and would create a new tax bracket targeting the state’s highest earners. Under the plan, individuals earning more than $1 million annually would pay a 10% tax rate on income exceeding that threshold.
Funding Key Services Across Virginia
Supporters say the new tax revenue would be directed toward critical public services, including improvements to Virginia’s education system, expanded child care support, and funding for affordable housing programs.
The proposal aims to address ongoing challenges such as rising housing costs, increased demand for child care services, and the need for additional funding in public schools across the Commonwealth. Lawmakers backing the bill argue that higher-income residents can help contribute more toward strengthening essential services that benefit communities statewide.
Potential Impact on Virginia’s Tax Structure
Currently, Virginia’s top individual income tax rate is significantly lower than the proposed 10% bracket for millionaires. If approved, the bill would mark a major shift in how the state taxes high-income earners and could generate millions of dollars in new annual revenue.
The new tax bracket would not affect residents earning below $1 million, meaning the vast majority of Virginia taxpayers would see no change to their current income tax rates.
Debate Continues in the General Assembly
The proposal remains under consideration in the Virginia General Assembly, where lawmakers will debate the potential economic impact and long-term benefits of the tax. Like all legislation, the bill would need approval from both chambers and the governor before becoming law.
Supporters believe the measure could provide sustainable funding for education and housing programs, while critics have raised concerns about how higher taxes could impact economic growth and business investment.
As Virginia continues to grow and face increasing demand for public services, the outcome of this proposal could play a major role in shaping the state’s financial future and how it invests in its communities.
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