If two Progressives in the Legislature have their way, income-earners who are in the top tax brackets will have an opportunity make a personal contribution to the budget-gap reduction effort.
Vermont Blue Ribbon Tax Commission
Tax analysts say if Vermont wants to lower its income tax rates, the state will have to eliminate itemized deductions.
If the Vermont State Legislature decides to take up the Blue Ribbon Tax Structure Commission’s final report Montpelier’s environment could become irascible.
I am inclined to agree that taxing services, (with certain exemptions and exclusions) is a good idea, but I’m really skeptical of the push toward the AGI-based system.
The “Amazon tax” could bring in significant revenues and stabilize the state’s sales tax revenues, which have remained flat, and help to level the playing field for brick-and-mortar retailers.
Under the Commission’s proposal, the sales tax rate would drop from 6 percent to 4.5 percent, and the tax would be expanded to certain goods and services that were previously exempt.
Taxation is the third rail of politics in Vermont, regardless of which party is in power, and that fact hasn’t changed since Democrats seized control of the executive branch in November and held their majorities in the Vermont House and Senate.