This week, the governor will outline his proposal for the next budget. And, some are calling for him to finally do something about Virginia's tax code.
Virginia's income tax is upside down. The wealthiest people in Virginia are taxed the least as a percentage of their income. The top tax bracket is $17,000, which means that public school teachers are in the same tax bracket as millionaires. That's why Megan Davis at the Commonwealth Institute says it's time for a millionaire's tax.
"It's a 10% tax bracket, so a brand new income tax bracket on annual taxable income over a million dollars," Davis says. "Your first million dollars faces the same tax rate that it's always faced. But every dollar over one million dollars would be taxed at a higher rate, a 10% rate."
Previous governors have considered Virginia's regressive system and essentially left it alone. Here's Governor Mark Warner's chief of staff, Bill Leighty.
"There is, I think, a compelling need for change," Leighty says. "But there just hasn't been a compelling purpose for putting it on the general agenda or an opportune time to do so."
Creating a new tax bracket for people who make more than a million dollars a year could raise as much as one billion dollars a year; revenue advocates say could be used to make investments in education or housing.
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
