| | This Issue Update newsletter is part of a series that provides more information on each priority issue on the Alliance's 2024 Legislative Agenda. The Legislative Agenda is crafted annually in partnership with early childhood organizations that are advancing legislative policy solutions related to health, safety, food security, economic security, and early care and education. The priority issues were selected by the Alliance's 21 member Steering Committee. | | | | | | | | Fair Share for Vermont: Build a Vermont that Works for Everyone 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. Update: Fund Vermont’s Future continues to support the proposal to create a 3% surcharge on incomes over $500,000, and has additionally extended support for the concept of legislation to tax unrealized gains as personal income for very wealthy Vermonters. The House Ways and Means Committee is currently considering H. 828, a bill to create a 3% income tax surcharge on personal annual income over $500,000, and H. 827, a bill to tax a portion of unrealized gains as personal income for individuals with over $10 million in assets. The Senate Finance Committee began taking testimony on the concept of high-income and wealth tax bills in January. | | | |  | Data and Talking Points - H. 828 will create a 3% surcharge on annual personal income over $500,000. According to the Institute on Taxation and Economic Policy, the bill will generate $98 million in state revenue each year. According to an analysis by the Joint Fiscal Office, the bill will generate $71 million each year.
- The proposal outlined in H. 828 will only affect the wealthiest 2% of Vermont taxpayers.
- H. 827 will tax a portion of unrealized gains as personal income for taxpayers with over $10 million in assets. Taxpayers will owe tax on half of the appreciation of their assets, and total taxable gains can’t exceed 10% of a filer’s net worth.
- Legislatures in at least 10 states are currently considering proposals to increase revenue through taxes on high-income tax payers’ income and assets.
| | | | Lead Organization Fund Vermont’s Future Fund Vermont’s Future is a coalition of organizations and individuals focused on ensuring that the state accurately assesses the needs of all people in Vermont and raises sufficient revenue to meet those needs, therefore securing a safe and healthy future for all. The coalition’s Steering Committee includes the ACLU of Vermont, Public Assets Institute, Vermont Conservation Voters, the Vermont Early Childhood Advocacy Alliance, Vermont Natural Resources Council, the Vermont-NEA, Voices for Vermont’s Children, and three individual members. | | | | | |  | Alliance Legislative Agenda: Weekly Issue Spotlight – Reach Up and Fair Share for Vermont – 2/12 This winter, the Alliance is hosting virtual Weekly Issue Spotlights leading up to ECDL. Each session focuses on one or two issues from the Alliance’s 2024 Legislative Agenda. Joined by representatives from the lead organizations, participants can ask direct questions and hear a brief legislative update regarding the issues. The next session will be held Monday, February 12, from 3:30 to 4:30 pm, and focuses on two issues on our Legislative Agenda – Reach Up: Ending Child Poverty is Within our Reach, and Fair Share for Vermont’s proposals to raise additional state revenue through progressive tax reform. Led by Amy Rose from Voices for Vermont’s Children and Anika Heilweil from the Fund Vermont’s Future Campaign, this session is a great opportunity to learn more about these issues, where they stand in the Legislature, and how to get involved. | | | | | |  | | | | |  | | | | | The Vermont Early Childhood Advocacy Alliance is a statewide coalition formed in 2000 of early childhood professionals, parents, organizations, businesses, and strategic partners committed to improving public policies that impact young children between birth and age eight in the areas of health, safety, food security, economic security, and early care and education. The Alliance crafts an annual Legislative Agenda in partnership with early childhood organizations, provides year-round advocacy support, and facilitates meaningful interactions with policymakers at key times during the decision making process. | | | | 7 School Street | Montpelier , Vermont 05602 vecaa.org The Vermont Early Childhood Advocacy Alliance is a program of the Vermont Community Loan Fund. | | | | | | | | | |
