The latest data from ITEP, released in a new report earlier this month, shows that Vermont’s system is the second most equitable in the country, behind California. The bottom 20 percent of Vermonters pay 8.7 percent of their income in state taxes while the top 1 percent pay 10.4 percent.
Carl Davis, the research director for ITEP, said he doesn’t believe it would be accurate to call Vermont the most progressive state. California has a much higher top rate for the wealthiest taxpayers, he said.
“In our research Vermont does not have the most progressive system in the nation, but it is certainly far less regressive than the vast majority of states,” Davis said.