Kelly Convirs-Fowler House Bill 188 Millionaire Income Tax Stalls in Committee

RICHMOND, VA – A proposal to impose a new 10 percent income tax bracket on earnings exceeding $1 million stalled in the House Finance Committee during the 2026 Virginia General Assembly session, after being incorporated into a broader tax measure that also failed to advance.

House Bill 188, introduced by Delegate Kelly Convirs-Fowler of Virginia Beach, sought to establish the higher tax rate beginning in taxable year 2026. Under current law, all income above $17,000 faces a top rate of 5.75 percent. The measure directed half of the new revenue to additional basic aid for public schools, 30 percent to the Child Care Subsidy Program, and 20 percent to the Virginia Housing Trust Fund.

Prefiled on January 7 and referred to the House Finance Committee, HB 188 received a fiscal impact statement from the Department of Taxation on January 30. Assigned to Subcommittee 3 on February 5, the subcommittee recommended incorporation on February 9 by voice vote. On February 11, the full committee incorporated HB 188 into HB 979, sponsored by Delegate Vivian Watts, also by voice vote.

HB 979 proposed a mix of tax changes, including increased standard deductions starting at $10,000 for singles, $15,000 for heads of household, and $20,000 for married filers in 2027, indexed for inflation thereafter. It also aimed to exempt food for human consumption and essential personal hygiene products from local sales taxes and remove caps on housing opportunity tax credits. Critically, it introduced new brackets: 8 percent on income between $600,000 and $1 million, and 10 percent above $1 million, with 50 percent of the added revenue earmarked for local public school operations, maintenance, capital outlays, debt, and interest.

However, HB 979 faced the same fate. After a revised fiscal impact statement on February 8, Subcommittee 3 recommended continuing it to 2027 on February 9 by voice vote, a move mirrored by the full committee on February 11.

Republicans in the House of Delegates have pointed to HB 188 and similar measures as evidence of an aggressive tax-increase agenda. They have highlighted more than 50 proposed tax hikes early in the session, arguing these contradict pledges of affordability amid rising living costs. House Republican communications emphasized bills like HB 188 as targeting high earners with rates nearly double the current top marginal rate, potentially stifling economic growth.

Analyses from groups like the Tax Foundation warned that such graduated income tax hikes, including those in HB 979, would harm Virginia’s economy by incentivizing high-income individuals to relocate to lower-tax states. The think tank noted Virginia’s proposals could make the commonwealth less competitive, driving away jobs, investment, and revenue in the long term.

Republican lawmakers stressed the need for spending restraint over revenue enhancement. They advocated maintaining Virginia’s relatively low, flat tax structure, which has attracted businesses and professionals. Critics within GOP ranks described the millionaire tax push as punitive toward success, predicting it would yield less revenue than projected due to behavioral responses like reduced work or migration.

The bills’ subcommittee defeats came amid broader debates on the state budget and economic policy. With the session approaching its midpoint in late February, tax reform efforts shifted focus to other priorities. Republicans celebrated the outcomes as a win for taxpayers, underscoring their commitment to blocking what they called a ‘dizzying array’ of tax increases.

Delegate Convirs-Fowler’s measure drew attention as part of a cluster of income tax bracket expansions, including HB 378 and HB 1074. None advanced beyond early committee stages, reflecting committee dynamics where fiscal conservatives held sway.

As the General Assembly continues deliberations through early March, the defeat of these proposals reinforces Virginia’s tax policy trajectory. Lawmakers now eye budget negotiations, where revenue assumptions exclude the higher brackets. Republicans maintain that fostering economic expansion through lower taxes remains the path to funding schools, child care, and housing without burdening top contributors.

The episode highlights ongoing tensions over Virginia’s tax code modernization. While proponents eyed progressivity, opponents prioritized competitiveness. With HB 188 and HB 979 carried over to 2027, the debate persists into future sessions.

Email the House of Delegates at:
Jessica Anderson: DelJAnderson@house.virginia.gov,
Bonita Anthony: DelBAnthony@house.virginia.gov,
Alex Askew: DelAAskew@house.virginia.gov,
Terry Austin: DelTAustin@house.virginia.gov,
Jason Ballard: DelJBallard@house.virginia.gov,
Robert Bloxom, Jr.: DelRBloxom@house.virginia.gov,
Gretchen Bulova: DelGBulova@house.virginia.gov,
Katrina Callsen: DelKCallsen@house.virginia.gov,
Karen Carnegie: DelKCarnegie@house.virginia.gov,
Betsy Carr: DelBCarr@house.virginia.gov,
Stacey Carroll: DelSCarroll@house.virginia.gov,
Mike Cherry: DelMCherry@house.virginia.gov,
Nadarius Clark: DelNClark@house.virginia.gov,
Laura Cohen: DelLJCohen@house.virginia.gov,
Joshua Cole: DelJCole@house.virginia.gov,
Nicole Cole: DelNCole@house.virginia.gov,
Kelly Convirs-Fowler: DelKConvirs-Fowler@house.virginia.gov,
Mitchell Cornett: DelMCornett@house.virginia.gov,
Rae Cousins: DelRCousins@house.virginia.gov,
Will Davis: DelWDavis@house.virginia.gov,
Karrie Delaney: DelKDelaney@house.virginia.gov,
Lindsey Dougherty: DelLDougherty@house.virginia.gov,
Mark Downey: DelMDowney@house.virginia.gov,
Michael Feggans: DelMFeggans@house.virginia.gov,
Hyland Fowler, Jr.: DelBFowler@house.virginia.gov,
Lily Franklin: DelLFranklin@house.virginia.gov,
Margaret Franklin: DelMFranklin@house.virginia.gov,
Debra Gardner: DelDGardner@house.virginia.gov,
Thomas Garrett, Jr.: DelTGarrett@house.virginia.gov,
Jackie Glass: DelJGlass@house.virginia.gov,
Timothy Griffin: DelTGriffin@house.virginia.gov,
Elizabeth Guzman: DelEGuzman@house.virginia.gov,
Karen Hamilton: DelKHamilton@house.virginia.gov,
Cliff Hayes, Jr.: DelCHayes@house.virginia.gov,
Dan Helmer: DelDHelmer@house.virginia.gov,
Rozia Henson, Jr.: DelRHenson@house.virginia.gov,
Phil Hernandez: DelPHernandez@house.virginia.gov,
Charniele Herring: DelCHerring@house.virginia.gov,
Keith Hodges: DelKHodges@house.virginia.gov,
Patrick Hope: DelPHope@house.virginia.gov,
Hillary Kent: DelHKent@house.virginia.gov,
Karen Keys-Gamarra: DelKKeys-Gamarra@house.virginia.gov,
Terry Kilgore: DelTKilgore@house.virginia.gov,
Paul Krizek: DelPKrizek@house.virginia.gov,
Amy Laufer: DelALaufer@house.virginia.gov,
Destiny LeVere Bolling: DelDLeVereBolling@house.virginia.gov,
Jay Leftwich, Jr.: DelJLeftwich@house.virginia.gov,
Alfonso Lopez: DelALopez@house.virginia.gov,
Fernando Martinez: DelMMartinez@house.virginia.gov,
John McAuliff: DelJMcAuliff@house.virginia.gov,
Adele McClure: DelAMcClure@house.virginia.gov,
Garrett McGuire: DelGMcGuire@house.virginia.gov,
Ellen McLaughlin: DelEMcLaughlin@house.virginia.gov,
Joseph McNamara: DelJMcNamara@house.virginia.gov,
Kirk McPike: DelKMcPike@house.virginia.gov,
Delores McQuinn: DelDMcQuinn@house.virginia.gov,
Leslie Mehta: DelLMehta@house.virginia.gov,
Will Morefield: DelJMorefield@house.virginia.gov,
May Nivar: DelMNivar@house.virginia.gov,
Israel O’Quinn: DeliOquinn@house.virginia.gov,
Delores Oates: DelDOates@house.virginia.gov,
Justin Pence: DelJPence@house.virginia.gov,
Eric Phillips: DelEPhillips@house.virginia.gov,
Kimberly Pope Adams: DelKPopeAdams@house.virginia.gov,
Cia Price: DelMPrice@house.virginia.gov,
Sam Rasoul: DelSRasoul@house.virginia.gov,
Atoosa Reaser: DelAReaser@house.virginia.gov,
David Reid: DelDReid@house.virginia.gov,
Andrew Rice: DelARice@house.virginia.gov,
Chris Runion: DelCRunion@house.virginia.gov,
Charles Schmidt, Jr.: DelCSchmidt@house.virginia.gov,
Don Scott: DelDScott@house.virginia.gov,
Phillip Scott: DelPScott@house.virginia.gov,
Holly Seibold: DelHSeibold@house.virginia.gov,
Briana Sewell: DelBSewell@house.virginia.gov,
Irene Shin: DelIShin@house.virginia.gov,
Marcus Simon: DelMSimon@house.virginia.gov,
Shelly Simonds: DelSSimonds@house.virginia.gov,
JJ Singh: DelJSingh@house.virginia.gov,
Rip Sullivan, Jr.: DelRSullivan@house.virginia.gov,
Anne Tata: DelAFTata@house.virginia.gov,
Josh Thomas: DelJThomas@house.virginia.gov,
Virgil Thornton, Sr.: DelVThornton@house.virginia.gov,
Luke Torian: DelLTorian@house.virginia.gov,
Kathy Tran: DelKTran@house.virginia.gov,
Howard Wachsmann, Jr.: DelOWachsmann@house.virginia.gov,
Wendell Walker: DelWWalker@house.virginia.gov,
Jeion Ward: DelJWard@house.virginia.gov,
Lee Ware: DelLWare@house.virginia.gov,
Vivian Watts: DelVWatts@house.virginia.gov,
Michael Webert: DelMWebert@house.virginia.gov,
Madison Whittle: DelMWhittle@house.virginia.gov,
Bill Wiley: DelBWiley@house.virginia.gov,
Rodney Willett: DelRWillett@house.virginia.gov,
Wren Williams: DelWWilliams@house.virginia.gov,
Tony Wilt: DelTWilt@house.virginia.gov,
Thomas Wright, Jr.: DelTWright@house.virginia.gov,
Scott Wyatt: DelSWyatt@house.virginia.gov,
Eric Zehr: DelEZehr@house.virginia.gov,

Email the Richmond City Council:
Andrew Breton, andrew.breton@rva.gov,
Katherine Jordan, katherine.jordan@rva.gov,
Kenya Gibson, kenya.gibson@rva.gov,
Sarah Abubaker, sarah.abubaker@rva.gov,
Stephanie Lynch, stephanie.lynch@rva.gov,
Ellen Robertson, ellen.robertson@rva.gov,
Cynthia Newbille, cynthia.newbille@rva.gov,
Reva Trammell, reva.trammell@rva.gov,
Nicole Jones, nicole.jones@rva.gov,

Email the Richmond School Board:
Matthew Percival, mpercival@rvaschools.net,
Kathryn Ricard, kricard@rvaschools.net,
Ali Faruk, afaruk@rvaschools.net,
Wesley Hedgepeth, whedgepeth@rvaschools.net,
Stephanie Rizzi, srizzi@rvaschools.net,
Anne Holton, aholton@rvaschools.net,
Cheryl Burke, cburke2@rvaschools.net,
Emmett Jafari, ejafari@rvaschools.net,
Shavonda Fernandez, sdixon@rvaschools.net,

Virginia Beach City Council:
Robert Dyer, mayorsoffice@vbgov.com,
Michael Berlucchi, mberlucc@vbgov.com,
Stacy Cummings, stcummings@vbgov.com,
Barbara Henley, bhenley@vbgov.com,
David Hutcheson, dhutcheson@vbgov.com,
Cal Jackson-Green, cjacksongreen@vbgov.com,
Robert Remick, wremick@vbgov.com,
Amelia Ross-Hammond, arosshammond@vbgov.com,
Jennifer Rouse, jvrouse@vbgov.com,
Joashua Schulman, jschulman@vbgov.com,
Rosemary Wilson, rcwilson@vbgov.com,
Group email: CityCouncil@vbgov.com,

Virginia Beach School Board:
Kathleen Brown, Kathleen.Brown@vbcpsboard.com,
Carolyn Weems, Carolyn.Weems@vbcpsboard.com,
Mark Bohenstiel, Mark.Bohenstiel@vbcpsboard.com,
Michael Callan, Michael.Callan@vbcpsboard.com,
David Culpepper, David.Culpepper@vbcpsboard.com,
Matt Cummings, Matt.Cummings@vbcpsboard.com,
Rose Dwyer, Rose.Dwyer@vbcpsboard.com,
Sharon Felton, Sharon.Felton@vbcpsboard.com,
Alveta Green, Alveta.Green@vbcpsboard.com,
Kimberly Melnyk, Kimberly.Melnyk@vbcpsboard.com,
Melinda Rogers, Melinda.Rogers@vbcpsboard.com,
Group email: SchoolBoard@vbcpsboard.com,

Email the Virginia Beach Board/Council:
Robert Dyer, mayorsoffice@vbgov.com,
Michael Berlucchi, mberlucc@vbgov.com,
Stacy Cummings, stcummings@vbgov.com,
Barbara Henley, bhenley@vbgov.com,
David Hutcheson, dhutcheson@vbgov.com,
Cal Jackson-Green, cjacksongreen@vbgov.com,
Robert Remick, wremick@vbgov.com,
Amelia Ross-Hammond, arosshammond@vbgov.com,
Jennifer Rouse, jvrouse@vbgov.com,
Joashua Schulman, jschulman@vbgov.com,
Rosemary Wilson, rcwilson@vbgov.com,

Email the Virginia Beach School Board:
Kathleen Brown, Kathleen.Brown@vbcpsboard.com,
Carolyn Weems, Carolyn.Weems@vbcpsboard.com,
Mark Bohenstiel, Mark.Bohenstiel@vbcpsboard.com,
Michael Callan, Michael.Callan@vbcpsboard.com,
David Culpepper, David.Culpepper@vbcpsboard.com,
Matt Cummings, Matt.Cummings@vbcpsboard.com,
Rose Dwyer, Rose.Dwyer@vbcpsboard.com,
Sharon Felton, Sharon.Felton@vbcpsboard.com,
Alveta Green, Alveta.Green@vbcpsboard.com,
Kimberly Melnyk, Kimberly.Melnyk@vbcpsboard.com,
Melinda Rogers, Melinda.Rogers@vbcpsboard.com,