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 total, the top 5% of Vermonters are set to receive over $440 million in federal tax cuts. To pay for this tax bonus for the wealthy, the federal government is making catastrophic funding reductions to programs that Vermonters rely on, and we are already not raising sufficient revenue to meet Vermont’s needs.

Here in Vermont, we can take back the federal tax cuts for the wealthiest Vermonters to raise state revenue, insulate the state from federal funding cuts, and build a Vermont that works for everyone who lives here.

The Fair Share for Vermont Campaign supports three surcharge options:

1. Original Proposal: The Fair Share for Vermont Campaign has long supported a 3% surcharge on personal income over $500,000. This proposal would increase taxes on the top 1% of Vermont income-earners and would raise approximately $114 million in annual state revenue.

2. Federal Tax Cut Clawback Proposal: The Fair Share for Vermont Campaign supports a plan to recover federal tax cuts given to the wealthiest Vermonters due to passage of H.R. 1 (the federal tax and budget bill passed in July). Through a 2% tax surcharge on personal income over $250,000 and a 5% surcharge on personal income over $500,000, the state can recover ~100% of the federal tax cut for the top 1% of Vermont income earners and 10% of the federal tax cut for the next 4%. This proposal would raise approximately $230 million in annual state revenue.

3. Original Proposal + Clawback Proposal: Before these federal tax cuts for the wealthy, the wealthiest Vermonters were already paying less than their fair share of taxes. We support a 2% tax surcharge on personal income over $250,000 and 8% surcharge on personal income over $500,000 to both insulate Vermont from federal actions and make needed investments. This proposal would raise approximately $344 million in annual state revenue.