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In an effort to increase state revenue and address budget shortfalls, Virginia lawmakers have introduced new tax legislation that will impact both individuals and businesses across the state. The proposed changes come as the Virginia Department of Taxation reported a decrease in tax revenues for the current fiscal year.One of the key measures included in the new legislation is the introduction of a tax increase on high-income earners. Individuals earning over $250,000 per year will see an increase in their income tax rate from 5.75% to 6.25%. Additionally, a new bracket for individuals earning over $1 million per year will be created, with a proposed tax rate of 7%.For businesses, the legislation includes a corporate tax increase for companies with annual revenue over $1 million. The corporate tax rate will be raised from 6% to 7% in an effort to generate additional revenue for the state. Small businesses with annual revenue under $1 million will see no change in their corporate tax rate.Moreover, the new legislation also includes an expansion of the sales tax to include certain online services and digital products. This will ensure that companies providing online services, such as streaming platforms and digital downloads, are subject to the same tax requirements as traditional retailers.In addition to these changes, lawmakers have also proposed a new tax credit for low-income families in Virginia. The Earned Income Tax Credit (EITC) will be expanded to provide additional financial relief to families struggling to make ends meet.Governor Jennifer Wilson expressed her support for the new tax legislation, stating that it is necessary to ensure the state's fiscal stability and maintain essential services for residents. She emphasized the importance of balancing the budget while also providing support to those most in need.The proposed tax legislation will now undergo further review and debate in the Virginia General Assembly before being voted on. If passed, the new tax measures are expected to go into effect at the beginning of the next fiscal year. Residents and businesses are encouraged to stay informed about these changes and consult with a tax professional to understand how they may be impacted.