Fair Taxes
Virginia’s tax code is fundamentally unfair, and with hardworking Virginians struggling to get ahead, we need the ultra-wealthy to pay their fair share.
The Problem
Critical state services, including K-12 education, child care, and housing, are dramatically underfunded. Simultaneously, Virginia has not updated our income tax brackets since 1990, meaning teachers and millionaires are in the same tax bracket. We must give hardworking Virginians the tools they need to be able to build their families’ futures.
The Solution
A fair tax on millionaires and billionaires- or “Millionaire’s Tax”- would create a new tax bracket for earned income over $1 million. The bill stipulates that revenue will go towards funding K-12 education, child care subsidy programs, and the Virginia Housing Trust Fund. This new tax bracket would only apply to a small number of Virginians with earned income above $1 million annually; that’s 0.4% of Virginia’s more than 4 million tax filers.
This legislation has been championed by Delegate Phil Hernandez, who brought the bill to the General Assembly in 2024 and 2025.
A Child Tax Credit in Virginia would create a $300 one-time tax credit to Virginia families for each child under 12 in their household. The parent would qualify for the credit if their household income is equal to or less than $100,000. The taxpayer could claim the credit once on any taxable year between 2025 and 2029. The tax credit would be available when eligible taxpayers file their state income taxes.
The fight for this legislation has been led by Delegate Kathy Tran since 2023, who has brought a version of the bill to the General Assembly each session for the last three years. This session, she was joined by Senator Lashresce Aird, who brought a companion child tax credit bill to the Senate.
The General Assembly should prioritize the middle class and ensure we’re strengthening our economy by strengthening our families and communities through a fair tax system.
