Vermont Business: Vermont Has the Capacity to Avoid 2016 Budget Cuts

“Total personal income” is a broad measure of income used by the Institute on Taxation and Economic Policy (ITEP). It is based on filers under age 65 and includes adjusted gross income, which is the starting point used by most states to determine taxable income, as well as income typically not subject to tax, such as Social Security benefits, Worker’s Compensation benefits, unemployment compensation, and other payments. The ITEP computer model also estimates unreported income for each state. The ITEP estimates are consistent across all states and are intended to be a more accurate assessment of a tax change in relation to a taxpayer’s ability to pay. Rankings are based on 2012 income but reflect 2015 tax laws.

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