Background 

At Voices for Virginia’s Children, we know that child poverty is a policy choice. When families have economic stability, children thrive. When parents can afford quality childcare, nutritious food, and stable housing, their children have the foundation they need to succeed in school and life. Fair Share tax legislation represents a critical opportunity to make that reality possible for more Virginia families.  

Right now, Virginia’s tax code is working against families who need support most. While the wealthiest individuals receive substantial tax breaks, working families struggle to afford basic needs. This isn’t just unfair; it is holding back our entire commonwealth. Fair Share tax reform would change that by ensuring corporations and wealthy households contribute their proportional share while generating essential revenue to invest in children and families.  

Virginia’s Tax Code: An Upside-Down System 

Virginia’s tax structure is fundamentally unfair. Families in the bottom 20% of income earners pay 8.7% of their income in state and local taxes, while the top pay 7.2%. This upside-down system places the greatest burden on the families who can least afford it, while limiting our state’s capacity to invest in the programs that would help our commonwealth achieve economic stability.  

The consequences play out in the lives of Virginia’s children every day. Nearly 235,000 Virginia children, 1 in 8, live in poverty, with even higher rates among children of color. These children live in poverty not because their parents aren’t working, most are, but because working wages don’t stretch far enough to cover rent, groceries, and childcare. Parents are forced to make impossible choices between paying for preschool or keeping the lights on. Many families are often one emergency away from crisis without a cushion to fall back on.  

The Real Cost of Inaction 

When we fail to reform our tax code, we’re not just maintaining an inequitable system, we’re actively harming Virginia’s economic future. The childcare crisis alone costs our economy an estimated $3.1 billion annually in lost earnings, productivity, and revenue. Parents, particularly mothers, leave the workforce or reduce their hours because they cannot find affordable care. Businesses struggle to recruit and retain employees. Economic growth stalls. 

Meanwhile, children grow up without the early education experiences that build school readiness. Families cycle in and out of economic crisis, unable to achieve the stability that enables long-term success. The intergenerational impact of these policy choices compounds over time, perpetuating inequality and limiting opportunity for the next generation of Virginians.

A Path Forward: HB 188 and HB 1074 

Fair Share tax reform offers a different path. HB 188 and HB 1074 would modernize Virginia’s tax code by asking the wealthiest residents, those with taxable income over $1 million annually, to pay a higher tax rate. This isn’t about punishing successes; it’s about creating shared prosperity. By ensuring that wealthy households contribute proportionally to the economic infrastructure that enabled their success, we can generate sustainable revenue dedicated to public school funding, childcare assistance, and affordable housing investments that strengthen family economic security. 

The revenue generated through Fair Share reform could expand childcare subsidies. so working parents can afford quality care and remain employed. It could strengthen and expand the Earned Income Tax Credit, lifting more families out of poverty. It could fund nutrition assistance for food-insecure families, increase access to affordable housing, and support employment programs that help parents secure better-paying jobs. 

These investments don’t just help individual families; they strengthen our entire economy. When parents can work without worrying about their children’s care, productivity increases. When families have stable housing and adequate nutrition, children perform better in school and require fewer costly interventions later. When we lift families out of poverty, we reduce spending on emergency services and crisis response. Fair tax policy is an economically sound policy. 

Evidence-Based Solutions 

The evidence supporting progressive tax reform is overwhelming, and it directly contradicts decades of failed trickle-down policies. A 2020 study from the London School of Economics analyzing 50 years of data across 18 countries found that tax cuts for the wealthy increased income inequality but had no significant effect on economic growth or job creation. The promised benefits of cutting taxes for the rich simply don’t materialize. Wealth concentrates at the top rather than trickling down to working families. 

Meanwhile, investments in working families, childcare, health care, nutrition assistance, and housing stability generate measurable economic returns through increased workforce participation, higher consumer spending, and improved long-term outcomes for children. The choice is clear: we can continue policies proven to concentrate wealth at the top, or we can invest in policies proven to strengthen families and grow our economy from the bottom up. 

Virginia has a proven track record of using tax policy to support families. The state’s Earned Income Tax Credit already helps working families keep more of what they earn. HB 188 and HB 1074 would expand and build on these successes, extending benefits to more families while creating new pathways to economic stability. 

Making Your Voice Heard 

This legislative session, HB 188 and HB 1074 are moving through the General Assembly. These bills would reform Virginia’s tax structure to ensure everyone pays their fair share while providing direct tax relief to working families, generating new revenue dedicated to investments in children and families. But they need your support. 

Legislators need to hear from constituents that Virginia’s families deserve better than a tax code that asks more from those with less. They need to understand that investing in children isn’t just morally right, it’s economically necessary. And they need to know that Virginians are ready for a tax system that reflects our values: one that supports working families, invests in children, and builds shared prosperity. 

You can act today by contacting your state legislators and urging them to support HB 188 and HB 1074. Tell them that Virginia’s children deserve a tax code that works for them, one that generates the revenue needed to invest in their health, education, and well-being. Together, we can build a Virginia where every child has what they need to thrive. 

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