00:00Virginia lawmakers proposes change to income tax.
00:04Virginia Democrats unveiled a sweeping tax proposal that would raise income brackets and expand taxes on capital gains,
00:12potentially pushing the state's top rate to 13.8% higher than California's.
00:18Supporters call it a fairness measure to fund education and housing, projecting over $1 billion annually in revenue.
00:26Critics, however, warn that the plan could drive high earners and businesses out of the state.
00:31Governor Abigail Spanberger, who ran on promises of making Virginia more affordable, now finds herself at the center of a storm.
00:38Her administration insists the goal is still affordability, pointing to pledges to lower costs for health care, housing, and energy.
00:46But Republicans and conservative groups see a bait-and-switch, and they're calling her out.
00:51State House Minority Leader Terry Kilgore didn't mince words, labeling the new legislation part of a slate of bad bills.
01:00The Republican Party of Virginia warned the tax hike mirrors the failed paths of California and New York.
01:06Grover Norquist, president of Americans for Tax Reform, said,
01:09Raising taxes in this environment is reckless, especially with other states aggressively slashing taxes to attract businesses and families.
01:17It's always a bad time to raise taxes, he said, but it would be particularly foolish now.
01:24The Congressional Leadership Fund also weighed in, accusing Democrats of moving at lightning speed to push new taxes.
01:30Within 48 hours of taking power in Richmond, the CLF noted, Democrats introduced legislation creating new sales and retail taxes.
01:40Their warning? Families and businesses will pay the price.
01:44With Democrats holding a 64-36 advantage in the House of Delegates and a slim 21-19 majority in the Senate,
01:52the bills are expected to pass, setting up Virginia to become the poster child for what critics say is
01:58a tax-heavy, business-unfriendly agenda.
02:01As the 2026 midterms loom, this gamble may come back to haunt Democrats.
02:06Voters promised affordability could be handed a hefty bill instead.
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