00:00VIRGINIA LAWMAKERS PROPOSES CHANGE TO INCOME TAX
00:03VIRGINIA 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.
00:25Critics, 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.
01:21But 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.
01:31Within 48 hours of taking power in Richmond, the CLF noted, Democrats introduced legislation creating new sales and retail taxes.
01:40Their warning?
01:41Families and businesses will pay the price.
01:43With 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,
01:54setting up Virginia to become the poster child for what critics say is a 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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