My attached written comments are meant to be neutral expert testimony on the economic competitiveness implications of HB 979.

Virginia desperately needs a more progressive and equitable tax code that ensures the wealthy pay the fair share. Currently, the top 1% pay the last of their earnings as a percentage of their income. As wealth disparity grows, and the Federal government withdraws support for critical services, the Commonwealth of Virginia should act immediately to ensure that our rural clinics, hospitals, schools, emergency response, and transportation infrastructure is fully funded. Our future depends on ensuring we invest in ourselves today.

I support HB979 for the millionaires' tax and elimination of grocery sales taxes. Fairfax County Public Schools is facing over a $100 million budget deficit for next year, and the proposed allocation reduces the strain on the General Fund without requiring a regressive sales tax. Currently, the tax would impact less than 0.5% of Virginians, and analysis on the similar HB188 for only the 10% bracket was expected to raise over $1 billion annually. A similar "Fair Share" amendment in Massachusetts from 2022 raised $5.7 billion, doubling forecasts and contributing 5% of the state budget. Furthermore, the number of millionaires in MA since then increased by 30%, dispelling concerns of a rich exodus. I believe this bill will significantly raise Virginians' quality of life and increase the affordability of the state.

As a Virginia resident and voter, I am writing to let you know that I strongly oppose HB243, HB 978, HB188, and HB 979. Virginians are already burdened with high taxes and high cost of living. These bills will only further punish those paying taxes in this state and will likely drive taxpayers, including those with very high incomes, to other states with lower tax burdens. Please reconsider. The prior administration left the state with a surplus. Increased taxes should not be needed to meet the needs of the state.

Virginia already has high taxes and higher cost of living and some people are already moving to West Virginia and states south of Virginia like North Carolina, Tennessee, and Florida because of it. If this bill passes that exodus could grow into a flood if taxes in Virginia go up to 8% or 10% from 5.75%, making it much more expensive to live in Virginia. If millionaires move out the burden of taxes fall on the rest of us that can't afford to move. Taxes should be fair and equal across the board the tax rate should be lowered for all of us,

This bill's 8% and 10% tax rates would result in Virginia having much higher tax rates than most neighboring states -- such as North Carolina (which has a 3.99% maximum tax rate), Kentucky (which has a 3.5% maximum tax rate) and West Virginia (which has a 4.82% maximum tax rate). If Virginia adopts this bill's radically higher tax rates, that would lead to significant numbers of high-income taxpayers leaving the state, and no longer paying taxes to Virginia. That could mean less money for Virginia. When Maryland raised taxes on millionaires in 2007, many moved out of state, resulting in Maryland raising less revenue as a result, according to the Tax Foundation: "The Comptroller of Maryland has reported that the number of 'millionaire' returns tumbled sharply between 2007 and 2008, a 30% drop in filers and 22% drop in declared income. Rather than income taxes from this group rising by $106 million, they fell by $257 million….One-in-eight millionaires who filed a Maryland tax return in 2007 filed no return in 2008….A Bank of America Merrill Lynch analysis of federal tax return data on people who migrated from one state to another found that Maryland lost $1 billion of its net tax base in 2008 by residents moving to other states." Some rich people can move across the border to neighboring states where there is no state income tax, like Tennessee, or where tax rates are lower, like North Carolina (3.99%), Kentucky (3.5%), and West Virginia (4.82%). If they are retirees, they can easily move to states where there is no state income tax, such as Florida.