On February 17, 2026, Virginia lawmakers unveiled a comprehensive tax reform package designed to generate additional revenue for the state. The proposal, which includes a mix of new taxes and changes to existing tax laws, comes amid ongoing budget challenges and the need to fund essential services for residents.One of the key components of the tax reform package is the implementation of a new tax on high-income earners. Under the proposal, individuals making over $500,000 per year and couples earning over $1 million per year would be subject to a higher income tax rate. This change is expected to generate significant revenue for the state while ensuring that wealthier residents pay their fair share.In addition to the new high-income tax bracket, the tax reform package also includes changes to the state's corporate tax laws. The proposal seeks to close loopholes that allow large corporations to avoid paying their fair share of taxes, ensuring that businesses operating in Virginia contribute to the state's revenue.Furthermore, the tax reform package includes measures to increase taxes on certain luxury goods and services, such as yachts, private jets, and high-end real estate transactions. These changes are aimed at targeting the wealthiest individuals in the state and generating additional revenue from those who can afford to pay more.Governor Jane Smith, who has been a vocal advocate for tax reform, praised the package as a necessary step towards addressing Virginia's budget challenges. In a statement, Governor Smith highlighted the importance of ensuring that all residents contribute to the state's revenue in a fair and equitable manner.While the tax reform package has received support from some lawmakers and advocacy groups, it has also faced criticism from opponents who argue that it will unduly burden high-income earners and stifle economic growth. However, supporters of the proposal maintain that it is necessary to ensure that the state has the resources to fund essential services and invest in infrastructure and education.The tax reform package is set to undergo further review and debate in the coming weeks, with lawmakers expected to vote on the proposal in the near future. If passed, the changes will take effect in the next fiscal year, with the potential to significantly impact Virginia's budget and revenue streams.