HB 188: Taxation; Imposition of Income Tax
🔴 THREAT LEVEL: HIGH
BILL SNAPSHOT
Bill Number: HB 188
Bill Patron: Del. Kelly K. Convirs-Fowler (D)
Issue Area: Taxation
Who It Will Impact: High Earners and Small Business Owners
QUICK SUMMARY
HB 188 creates a new 10% income tax bracket starting in 2026 on Virginians whose income is over $1 million. Currently, all income above $17,000 is taxed at 5.75%. The bill directs the new tax revenue toward public schools (50%), child care subsidies (30%), and affordable housing (20%).
RALLY ANALYSIS
This bill represents a significant tax increase and introduces a “millionaire” surtax in Virginia.
While framed as targeting only high earners, history shows that tax hikes often discourage investment, business growth, and job creation.
Virginia families shouldn’t be punished for success with higher taxes. We need smarter governance, fiscal discipline, and policies that encourage growth.
WHY THIS MATTERS
- Raises taxes instead of fixing spending
- Hurts Virginia’s competitiveness
- Punishes success and job creators
RALLY VERDICT: ❌ OPPOSE
Rally Virginia opposes HB 188.
Rally Virginia says NO to higher taxes.
RALLY RADAR — THREAT LEVEL LEGEND
⚫ CRITICAL THREAT — Immediate and severe harm; must be stopped
🔴 HIGH THREAT — Serious risk to safety, liberty, or governance
🟡 MODERATE THREAT — Concerning but limited scope
🟢 LOW THREAT — Minimal impact or symbolic
