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Would affect wealthy individuals with total income over specific thresholds
Republished from April 24 Lake Champlain Chamber advocacy newsletter
This week, the House Ways and Means Committee looked at a new draft that reflects a shift toward more of a restructuring of the state’s income tax system, instead of just a new bracket they discussed last week, as well as the creation of a new “Vermont Investment Proceeds” (VIP) tax.
- Income Tax Overhaul: A new proposal would lower the bottom tax rate from 3.35% to 2.7% and expand the middle bracket.
- New Top Rate: To pay for these cuts, the top marginal rate would climb to 12.7% (down from an earlier proposal of 13.3%, so we can’t say the highest bracket in the nation) for the highest earners.
- The VIP Tax: This new 4% surtax would target investment income, such as capital gains and dividends, for individuals with total income over specific thresholds,
What to do with the Money? The revenue generated, estimated at roughly $100 million annually, seems like an afterthought and is debatable.
- Option A: Use the money for broad tax relief by lowering brackets for most residents.
- Option B: Invest in healthcare affordability, including premium caps for marketplace plans and expanded Medicare assistance.
What’s Next? No final decision has been made. The committee is currently refining how to structure the rates and exactly where to allocate the resulting revenue. This week, the Governor noted his opposition to any tax increases when asked at his weekly press conference.
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Categories: News Analysis
Another tax Taxpelier has a one track mind. What is this tax for. a future pay raise? Sanders lives on in VT–tax the rich motto. Seems this tax will tax the affluent that moved to VT and bought property thinking VT is a nice state. WALLA. They’ll leave VT like what’s happening in CA. Welcome to the club. No need for housing, no one to occupy.. As I’ve said often, give a liberal enough rope and they will hang themselves.
If all they were hanging was “themselves”‘ I’d buy them the rope, but these disingenuous dirt bags want us to brake in the gallows !
If I didn’t know any better, I would say this sounds like the state attempting to steal the money of those who earn it and re-appropriate it to:
1.) Those who don’t.
2.) The legislators behind Marxist ideas like this.
3.) The black hole of virtue-signaling legislation inspired by utopian ideological fantasies which are devoid of common sense and respect for human dignity and liberty.
Sing this to the tune of the song “Sign” by the Five Man Electrical Band .
And the Legislator said,
anyone getting by,
will be taxed to death,
So I sent a letter to my Rep.
and I asked him to explain their debt,
he said you sound like you need another job,
to support yourself, and me,
So I packed my Uhaul up,
and I moved to Tennessee!
Ohhh
Tax, tax,
everything is taxed
emptying my wallet,
breaking my back,
They take my money for this and that,
So I can’t afford to live here !
Okay, I never claimed to be Lennon/McCartney, But I had fun!
This state is like one big vacuum cleaner, sucking in all the money and blowing out hot air for the taxpayer.
To bad I can’t harness their hot air to heat my house !