Frequently Asked Questions

Fair Share for Vermont is a movement to increase taxes on the wealthiest Vermont residents to raise state revenue. Fair Share for Vermont includes two legislative proposals: H. 827 and H. 828. Both proposals have been introduced in the Vermont state legislature and are being discussed by legislative committees.

H. 827 is legislation to raise taxes on individuals with over $10 million in assets. This legislation would tax a portion of unrealized gains as personal income.

H. 828 is legislation to create a 3% surcharge on personal annual income over $500,000. It would affect under 2% of Vermont taxpayers and would raise over $70 million each year in state revenue.

Vermonters want government that works, and quality government requires public investment. More tax revenue from those who can most afford it means more money for fixing our roads and bridges, expanding broadband to everyone, cleaning up our lakes and rivers, and much more. With the revenue generated by raising taxes on the wealthiest Vermonters, we can build a better Vermont where no child goes hungry, where everyone gets the healthcare they need, and where our infrastructure can support a vibrant economy.

Public investment helps all of us. Public investment is used to sustain and improve our transportation systems, keep our downtowns clean and safe, ensure that all people have the opportunity to thrive in our economy, protect our environment, and more. Currently, we are seeing chronic underfunding in state agencies and infrastructure, which has led to fractures in the most basic of services, from safe roads to access to broadband. Increasing revenue to improve government functions will build a better Vermont for all of us, including the wealthy.

The idea of “Millionaire Tax Flight” is not backed up by the data. In fact, very wealthy people are far less likely to move than low and middle-income individuals. States with the highest tax rates on high incomes actually have the most “millionaire” households.

Wealthy people have the resources to live where they want, and instances of wealthy individuals moving in response to increases in state taxes are extremely rare. Instead, wealthy people have the ability to move to communities that are appealing – communities with a rich social fabric that includes good schools, clean downtowns, and vibrant small businesses. By raising more revenue, the state of Vermont can make communities that draw people in with our inclusive communities, reliable services, and accessible health and child care.

Vermont is experiencing skyrocketing income and wealth inequality. At the same time, lower- and middle-income Vermonters have been squeezed by incomes that are not keeping up with rising costs of living.

While Vermont has a progressive income tax code, when all taxes (including income, property, sales, and excise taxes) are considered, Vermont’s tax structure is regressive at the top. This means that a Vermonter who is making $80,000 per year currently pays a higher share of their income in state and local taxes than a Vermonter who is making $500,000 per year.