As members of the General Assembly prepare for the upcoming session with a new governor, tax policy is likely to be a topic of debate.
The wealthiest one percent in Virginia pay the least in state and local taxes as a share of their incomes. That’s according to a new report from the Commonwealth Institute, which offers a menu of potential solutions, including a new tax bracket for millionaires.
"The wealthiest people – hedge fund owners, millionaires – they're in the same top state income tax bracket as our firefighters, as our teachers," says Rodrigo Soto is legislative director at the Commonwealth Institute. "And there's something inherently wrong with that because the ultra-wealthy are not paying their fair share, and that's leaving behind valuable state resources."
Steven Haner at the Thomas Jefferson Institute points out that Tennessee, Texas and Florida don't even have an income tax.
"Virginia does have a very low top tax rate, but we are competing with other states that have no income tax," says Haner. "There are some who think we should be lowering that top tax rate."
Virginia's tax brackets have been debated for years, although the dynamics will be different next year because Democrats will have a trifecta, controlling the Executive Mansion, the House of Delegates and the state Senate.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
