Montpelier 5/20/2012
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  1. “What’s been lost in this discussion about raising the income taxes on the wealthy in Vermont is that we already do,” Shumlin said. “We have, thanks to me and others — and I’m proud of it — the most progressive income tax in the country. Not just in New England, but in the country. We are charging our wealthiest citizens more than any other state, as it should be.”

    With respect, this is not accurate.

    According to the JFO’s Tax Study (Part 2), there are a number of states where the tax on the wealthy is higher than Vermont. The Study looked at 12 states (including Vermont). State taxes on the wealthy were higher in five of the states studied. See Case #22 (income = $357,934), Case #6 ($715,868), and Case #23 ($1,066,309).

    The five states with higher state taxes were Maine, Minnesota, New York, North Carolina, and Oregon.
    http://www.leg.state.vt.us/jfo/reports/2007-10%20Vermont%20Tax%20Study%20-%20Volume%202.pdf

    Vermont does have a progressive icome tax system. But as some of us have been saying for years (and as the Blue Ribbon Tax Commission reminded us), looking only at the marginal rates is misleading. The evidence is clear: Vermont does NOT “charge our wealthiest citizens more than any other state.”

    I wish we could stick to the facts.

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