Income Tax Structure Dated
Virginia personal income tax structure not changed much in three-quarters of a century
- First-bracket ceiling set at $3,000 in 1919
- Three-bracket structure adopted in 1926, 1st 2 still unchanged
- Current rates for first three brackets set in 1948
- Fourth bracket added in 1972, starting at $12,000
- Top bracket increased to $17,000 by 1987 law
- Standard deductions ($3,000 and $5,000) and personal exemptions ($800) set by 1987 law and unchanged since
Result is that rate graduation tops out in poverty range for many families, and a considerable portion of poverty-level income remains in the tax base