Just days after consolidating power in Richmond, Virginia Democrats wasted no time unveiling a sweeping tax plan that could catapult the Commonwealth to the top of the national tax charts—surpassing even deep-blue California.
Newly introduced legislation would impose higher income tax brackets and expand taxes on capital gains and investment income. If passed, Virginia’s top effective income tax rate would jump to a staggering 13.8%. That’s right—higher than California’s.
Congrats Virginia! Ya got played!
VIRGINIA DEMS WANT TO HIKE TAXES HIGHER THAN CALIFORNIA
Dems want to raise Virginia’s top income tax rate from 5.75% to 10%, and if a second bill passes too, add another 3.8% on top of that.
That’s a 13.8% state income tax, making Virginia… pic.twitter.com/qq8b8mNdv2
— Barry Cunningham (@barrycunningham) January 24, 2026
Democrats argue the move is about “fairness.” Delegate Kelly Convirs-Fowler claims millionaires should “pay their fair share,” insisting the added revenue will stabilize the state budget and expand services. Left-leaning think tank The Commonwealth Institute says the plan could rake in over $1 billion annually for education, housing, and other government programs.
But critics aren’t buying it—and they’re sounding the alarm.
Governor Abigail Spanberger, who ran on promises of making Virginia more affordable, now finds herself at the center of a storm. Her administration insists the goal is still affordability, pointing to pledges to lower costs for health care, housing, and energy. But Republicans and conservative groups see a bait-and-switch—and they’re calling her out.
State House Minority Leader Terry Kilgore didn’t mince words, labeling the new legislation part of a slate of “bad bills.” The Republican Party of Virginia warned the tax hike mirrors the failed paths of California and New York.
Grover Norquist, president of Americans for Tax Reform, said raising taxes in this environment is reckless, especially with other states aggressively slashing taxes to attract businesses and families. “It’s always a bad time to raise taxes,” he said, “but it would be particularly foolish now.”
VA Democrats have introduced legislation that would increase the state income tax to 13.8%.
That would be the highest in the country.
Abigail Spanberger ran and won the governorship as an “Affordable Virginia” candidate.
As Gomer Pyles would say, surprise, surprise, surprise. pic.twitter.com/7Y7gy1FSo0
— David Joe May (@TheGrayRider) January 24, 2026
The Congressional Leadership Fund also weighed in, accusing Democrats of moving at lightning speed to push new taxes. “Within 48 hours of taking power in Richmond,” the CLF noted, “Democrats introduced legislation creating new sales and retail taxes.” Their warning? Families and businesses will pay the price.
With Democrats holding a 64-36 advantage in the House of Delegates and a slim 21-19 majority in the Senate, the bills are expected to pass—setting up Virginia to become the poster child for what critics say is a tax-heavy, business-unfriendly agenda.
As the 2026 midterms loom, this gamble may come back to haunt Democrats. Voters promised affordability could be handed a hefty bill instead.
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