The report looks at how well states distribute taxes based on family incomes. In most states lower-income families pay a higher percentage of their income in state and local taxes than those at the top. That’s the definition of a regressive tax system. Vermont’s is one of the least regressive in the country.
ITEP Work in Action November 29, 2018
Public Assets Institute: A Fairer Tax System Would Help Working Families
ITEP Work in Action October 18, 2018
Rutland Herald: In All Fairness
Anti-tax advocates across the country and in Vermont continue to push for policies that reduce tax rates for the wealthy and businesses, the report finds. However, a movement is growing in opposition to this agenda, as the public realizes that tax cuts for the wealthy and corporations mean less money to fund the things that benefit everyone: schools, parks and public spaces, infrastructure, public safety and other basic services.
ITEP Work in Action October 17, 2018
Public Assets Institute: New report: Vermont’s Tax System Is Among the Least Regressive
Tax systems generally favor the wealthy, but Vermont’s system is skewed less than most other states when it comes to high-income taxpayers. That was the key finding of a study released today by the Institute on Taxation and Economic Policy (ITEP) and Public Assets Institute.
October 17, 2018
Vermont: Who Pays? 6th EditionVERMONT Read as PDF VERMONT STATE AND LOCAL TAXES Taxes as Share of Family Income Top 20% Income Group Lowest 20% Second 20% Middle 20% Fourth 20% Next 15% Next…
September 26, 2018
Tax Cuts 2.0 – VermontThe $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called…
blog July 10, 2018
Building on Momentum from Recent Years, 2018 Delivers Strengthened Tax Credits for Workers and Families
Despite some challenging tax policy debates, a number of which hinged on states’ responses to federal conformity, 2018 brought some positive developments for workers and their families. This post updates a mid-session trends piece on this very subject. Here’s what we have been following:
blog June 26, 2018
Gas Taxes Rise in Seven States, Including an Historic Increase in Oklahoma
A rare sight is coming to Oklahoma. The last time the Sooner State raised its gas tax rate, the Berlin Wall was still standing, and Congress was debating whether to ban smoking on flights shorter than two hours. Fast forward 31 years, and Oklahoma is finally at it again. On Sunday, the state’s gas tax rate will rise by 3 cents and its diesel tax rate by 6 cents. Both taxes will now stand at 19 cents per gallon—still among the lowest in the country. But Oklahoma isn’t the only state where gas taxes will soon rise.
blog May 22, 2018
Most States Have Raised Gas Taxes in Recent Years
An updated version of this blog was published in April 2019.
State tax policy can be a contentious topic, but in recent years there has been a remarkable level of agreement on one tax in particular: the gasoline tax. Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies.
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect Vermont Residents’ Federal TaxesThe final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low-…
December 6, 2017
How the House and Senate Tax Bills Would Affect Vermont Residents’ Federal Taxes
The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Vermont residents.
November 14, 2017
How the Revised Senate Tax Bill Would Affect Vermont Residents’ Federal Taxes
The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Vermont, 40 percent of the federal tax cuts would go to the richest 5 percent of residents, and 11 percent of households would face a tax increase, once the bill is fully implemented.
November 6, 2017
How the House Tax Proposal Would Affect Vermont Residents’ Federal Taxes
The Tax Cuts and Jobs Act, which was introduced on November 2 in the House of Representatives, includes some provisions that raise taxes and some that cut taxes, so the net effect for any particular family’s federal tax bill depends on their situation. Some of the provisions that benefit the middle class — like lower tax rates, an increased standard deduction, and a $300 tax credit for each adult in a household — are designed to expire or become less generous over time. Some of the provisions that benefit the wealthy, such as the reduction and eventual repeal of the estate tax, become more generous over time. The result is that by 2027, the benefits of the House bill become increasingly generous for the richest one percent compared to other income groups.
October 4, 2017
GOP-Trump Tax Framework Would Provide Richest One Percent in Vermont with 45.1 Percent of the State’s Tax Cuts
The “tax reform framework” released by the Trump administration and congressional Republican leaders on September 27 would not benefit everyone in Vermont equally. The richest one percent of Vermont residents would receive 45.1 percent of the tax cuts within the state under the framework in 2018. These households are projected to have an income of at least $505,400 next year. The framework would provide them an average tax cut of $45,250 in 2018, which would increase their income by an average of 3.8 percent.
August 17, 2017
In Vermont 27.8 Percent of Trump’s Proposed Tax Cuts Go to People Making More than $1 Million
A tiny fraction of the Vermont population (0.3 percent) earns more than $1 million annually. But this elite group would receive 27.8 percent of the tax cuts that go to Vermont residents under the tax proposals from the Trump administration. A much larger group, 41.5 percent of the state, earns less than $45,000, but would receive just 7.1 percent of the tax cuts.
July 20, 2017
Trump Tax Proposals Would Provide Richest One Percent in Vermont with 39.1 Percent of the State’s Tax Cuts
Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Vermont would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,192,800 in 2018.
blog June 28, 2017
State Rundown 6/28: States Scramble to Finish Budgets Before July Deadlines
This week, several states attempt to wrap up their budget debates before new fiscal years (and holiday vacations) begin in July. Lawmakers reached at least short-term agreement on budgets in Alaska, New Hampshire, Rhode Island, and Vermont, but such resolution remains elusive in Connecticut, Delaware, Illinois, Maine, Pennsylvania, Washington, and Wisconsin.
blog June 7, 2017
State Rundown 6/7: Kansas Success Story and Other State News
This week, we celebrate a victory in Kansas where lawmakers rolled back Brownback’s tax cuts for the richest taxpayers. Governors in West Virginia and Alaska promote compromise tax plans. Texas heads into special session and Vermont faces another budget veto, while Louisiana and New Mexico are on the verge of wrapping up. Voters in Massachusetts may soon be able to weigh in on a millionaire’s tax, the California Senate passed single-payer health care, and more!
blog May 17, 2017
Investors and Corporations Would Profit from a Federal Private School Voucher Tax CreditA new report by the Institute on Taxation and Economic Policy (ITEP) and AASA, the School Superintendents Association, details how tax subsidies that funnel money toward private schools are being…
report May 17, 2017
Public Loss Private Gain: How School Voucher Tax Shelters Undermine Public Education
One of the most important functions of government is to maintain a high-quality public education system. In many states, however, this objective is being undermined by tax policies that redirect public dollars for K-12 education toward private schools.
ITEP Work in Action April 17, 2017
Public Assets Institute: Meeting Vermonters’ needs in Fiscal 2018 and beyondElected leaders acknowledge investments are needed to clean up Lake Champlain, provide families with child care financial assistance, and make higher education more affordable. But progress has been slow in…
media mention January 12, 2017
Seven Days: Afford-Ability: Can Gov. Phil Scott Deliver a Bigger Slice of the Pie?“Despite all the ink spilled over the state’s supposedly high tax burden, Vermont’s effective tax rate is roughly average. And according to a 2015 study by the left-leaning Institute on…
media mention June 22, 2016
VT Digger: Margolis: Why ‘cure’ Vermont’s economy if it isn’t sick?“These assessments are somewhat oversimplified but not entirely inaccurate. Lower-income Vermonters actually pay a smaller percentage of their incomes in state and local taxes than their counterparts in most other…
media mention May 3, 2016
Vermont Biz: Vermont top state in the East for the ‘Middle Class’“Tax fairness. A measure calculated by the Institute on Taxation and Economic Policy (link is external) that compares the tax burden (including all types of taxes) of the middle 60%…
media mention May 3, 2016
VT Digger: Margolis: Spending less isn’t as simple as it sounds“It isn’t just that the wealthy — households in the top 1 percent in Vermont whose average income is $978,400 — paid 7.7 percent of their income in total state…
report January 19, 2016
Testimony before the Vermont Senate Committee on Finance: Tax Policy Issues with Legalized Retail Marijuana
Thank you for the opportunity to testify on the tax policy issues associated with legalized retail marijuana. Our testimony includes five parts:
1. An overview of the marijuana tax rates and structures that exist in the four states (Alaska, Colorado, Oregon, and Washington) where retail marijuana can be legally sold.
2. An analysis of early stage revenue trends in the two states (Colorado and Washington) where legal, taxable sales of retail marijuana have been taking place since 2014.
3. A discussion of issues associated with different types of marijuana tax bases–specifically weight-based taxes, price-based taxes, and hybrids of these two structures.
4. A discussion of issues involved in choosing a tax rate for marijuana.
5. A discussion of long-run issues related to the structure of marijuana taxes and their revenue yield.