Virginia Democrats go all in on tax hikes after campaigning on affordability

Virginia Republicans are questioning whether their Democratic counterparts have a case of political amnesia after rolling out a long list of tax‑hike proposals that threaten to undercut Gov. Abigail Spanberger’s affordability message.

Democratic lawmakers in Richmond have proposed a wide range of revenue raisers — everything from higher taxes on millionaires and increased taxes on investment income to new levies on retail delivery services in Northern Virginia, gym memberships, guns and even dog care.

“Folks are suffering out there, whether it is energy bills, whether it is grocery bills, everything is going up, and to put new taxes on them, I think, is just the wrong way to approach affordability,” state House Republican leader Terry Gilgore recently told reporters.

Delegate Hillary Pugh Kent, a Republican, said the disconnect is obvious. “What they say and what we actually see in terms of legislation do not correlate,” she said.

President Trump also weighed in, saying many people will leave Virginia, though he incorrectly claimed that Mr. Spanberger already enacted a series of new taxes.

The criticism comes just weeks into Mr. Spanberger’s four‑year term, putting Democrats on the defensive.

“There is a lot of noise out there about tax policy right now and, I would argue, a lot of disingenuous political actors who are trying to make noise about tax policy right now,” state Sen. Schuyler VanValkenburg, a Democrat, told reporters this week in Richmond. “But I think that when the session is over, and the governor signs a budget, you are going to see a set of tax policies and a budget that reflects our values of helping the working and middle class.”

Delegate Dan Helmer said the noise is overshadowing the progress his Democrats are making.

“There is a selective narrative going on right now that is not focused on the actual bills that are passing the legislature,” he said.

Ms. Spanberger’s office said more than half a dozen proposals are advancing as part of her affordability agenda.

They include efforts to reduce heating and energy costs, create a task force to improve energy initiatives, and help localities preserve affordable housing.

“My administration is focused on working with our partners in the General Assembly to lower healthcare, housing, and energy costs for Virginians in every community across our Commonwealth,” Ms. Spanberger said in a statement. “I look forward to signing these bills — and every piece of legislation in our agenda — into law to bring down costs for Virginians.”

Republicans are keeping attention on the tax proposals.

“They will raise some money from the wealthiest people in the commonwealth of Virginia until those wealthy people decide to move,” state Delegate Joe McNamara said. “People are not trees.”

The measures would create new tax brackets and raise the top rate from 5.75% to 10% for individuals earning more than $1 million annually, with those earning over $600,000 paying 8%. They would also impose a 3.8% tax on net investment income and expand the retail sales and use tax to services such as gym memberships, nail care, tattoos, dry cleaning, landscaping, and dog grooming and walking. Firearms and ammunition manufacturers face an 11% excise tax.

Republicans argue that new taxes are unnecessary after years of budget surpluses. They are again pushing to phase out the car tax — a goal they failed to achieve under Gov. Glenn Youngkin — and want to eliminate the remainder of the grocery tax, which was reduced during Youngkin’s term.

Ms. Spanberger won decisively in November, as Democrats expanded their majority in the House of Delegates. They also control the state Senate.

She campaigned heavily on tackling rising costs for housing, energy, and healthcare, and she blamed Mr. Trump’s federal workforce cuts and tariffs for worsening the problem.

She returned to the affordability theme in her inaugural address, pledging to work relentlessly to make life more affordable for Virginians. She did not mention taxes and has not taken a position on most of the tax‑increase proposals introduced by Democratic lawmakers.

Mark Rozell, political science professor at George Mason University, said the tax proposals are an “easy target for Republicans” because it “undercuts the Democratic message of focusing on affordability.”

“For Republicans, it is a good populist message because it does not take any convincing of voters that affordability with new taxes doesn’t add up,” Mr. Rozell said.