HB 378: Net Investment Income
🔴 THREAT LEVEL: HIGH
BILL SNAPSHOT
Bill Number: HB 378
Bill Patron: Del. Elizabeth B. Bennett-Parker (D)
Bill Area: Taxes / Investment Income
QUICK SUMMARY
HB 378 creates a new 3.8% tax on investment income for individuals, trusts, and estates starting in 2027. The tax applies to investment income above $500,000 and would impact savings, retirement investments, family trusts, and small business owners.
RALLY ANALYSIS
- This bill introduces a new tax, not a tax cut or reform.
- It targets investment income, which includes retirement savings, dividends, interest, and capital gains.
- While framed as a “tax on the wealthy,” the burden can fall on small business owners, farmers, retirees, and families who rely on investments to plan for the future.
- Higher investment taxes discourage saving, investing, and economic growth in Virginia.
WHY THIS MATTERS
- Punishes saving and investing: Discourages responsible financial planning
- Hurts retirees: Many rely on investment income, not wages
- Drives money out of Virginia: Investors and businesses may relocate to lower-tax states
RALLY VERDICT: ❌ OPPOSE
Rally Virginia opposes HB 378 because it makes Virginia less competitive, raises taxes during economic uncertainty, and penalizes investment and job creation.
Bottom line: Virginia should encourage investment and growth — not tax them away.
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
