The top 1% of Vermonters are set to receive an average annual tax cut of $57,000 per filer due to policies passed by Congress and the Trump Administration. In addition to this tax bonus, the federal government currently gives wealthy Americans–including wealthy Vermonters–significant tax loopholes.

For most Vermonters, income is earned through work. For the wealthiest, a significant amount of income is unearned and a product of wealth–such as dividends, capital gains, and interest. A majority of that unearned income is subject to a federal loophole and is taxed at a much lower rate federally than earned income.

Here in Vermont, we can close that federal loophole. The Fair Share for Vermont Campaign supports a 4% “wealth proceeds tax” for individuals making over $200 thousand per year and joint filers making over $250 thousand per year. This tax would only apply to unearned income–a majority of which receives preferential federal tax treatment. This proposal would raise approximately $75 million in annual state revenue.