The Governor’s Administration and the Legislature currently focus on the amount of revenue expected when building state budgets, instead of the needs of Vermont residents. As a result of this focus on revenue rather than needs, state programs and services are chronically underfunded. Even as demonstrated needs are increasing, there has been no adjustment to the Vermont personal income tax rates for years. At the same time, wealth and income inequality has grown, resulting in a population of wealthy Vermonters who are able to pay significantly more in taxes than they currently are. The state must raise revenue from those who can afford to pay.

The Alliance supports Fund Vermont’s Future’s “Fair Share for Vermont” Proposal, which would increase the tax rate for Vermont taxpayers earning more than $500,000. This tax increase will not only generate approximately $100 million for the state to improve public goods and services but will also demonstrate that raising progressive revenue is possible, paving the way for the Legislature to build a future for all Vermonters based on abundance and prosperity.

LEAD ORGANIZATION: Fund Vermont’s Future Campaign

Data and Talking Points

• The “Fair Share for Vermont” proposal will create a 3% surcharge on annual personal income over $500,000, which will generate $98 million in state revenue each year.