Theo Wells-Spackman is a Report for America corps member who reports for VTDigger.
When Rep. Teddy Waszazak, D-Barre City, sat down with me after Wednesday morning’s legislative meetings, he was carrying a cupcake that bore the words “tax the rich.”
Tax Day saw the House Ways and Means Committee, on which Waszazak sits, poring over a bill that seeks to do just that. The measure, which would levy additional taxes on investment income for some wealthier Vermonters and create a new income tax bracket for the top-earning 1% of the state’s filers, has been the subject of intense debate within the Statehouse’s Democratic caucus.
“All we’re trying to do here is ask the folks who have the most in our state to support the folks who have the least,” Waszazak told me.
But not all of his colleagues are on the same page. When two House Democrats launched an attempt to raise taxes for Vermont’s highest earners via a tax bill amendment last month, party leadership grew concerned that rank-and-file members would suddenly rally to pass the proposal. The vote on the amendment was abruptly postponed.
Rep. Lori Houghton, D-Essex Junction, the House Majority Leader, subsequently told Vermont Public that despite generally agreeing with the effort, she had concerns about the “political cost” of passing such a measure in an election year. The factions agreed that a combined version of several wealth tax proposals would receive full consideration later on.
Gov. Phil Scott’s vocal opposition to a wealth tax bill presents a significant roadblock for the bill’s advocates. But supportive members hope to push the measure as far as possible.
“A lot of Vermonters are calling on us to do this,” Rep. Emilie Kornheiser, D-Brattleboro, who chairs the committee, said in an interview Wednesday. “We’ll see if there’s a path forward for it.”
The new Ways and Means committee bill would add a new income tax bracket for the top 1% of Vermont households by earnings, which would apply to incomes over $586,634 for jointly filing households. The new top tax rate would be 13.3%, added above the current highest rate of 8.75%. An initial tax department analysis of the bill indicated Vermont’s income tax dues would likely become the highest in the country for many high earners under the new proposal.
The other main provision in the bill would levy an additional tax of 4% on investment income — including capital gains, dividends and rental income — for some households with income over $250,000 when filing jointly. Lawmakers have been referring to this part of the bill as the Vermont Investment Proceeds tax. (“Am I the only one who objects to ‘VIP tax’?” inquired Rep. Charlie Kimbell, D-Woodstock.)
“I think there’s sort of a growing interest around the country in taxing unearned income at a higher level than earned income, as the wealth gap has grown so much in the last few years,” Kornheiser told the committee.
Altogether, the bill would be expected to raise more than $170 million in new revenue in 2028, according to the state fiscal analyst Patrick Titterton. In its current form, the bill would funnel this money into the state’s General Fund, but lawmakers have made suggestions about the use of such new resources on several occasions this session, ranging from health care programs to school construction.
Rep. Woodman Page, R-Newport City, expressed concern that wealthier Vermonters might leave the state entirely to avoid such tax hikes. It’s an argument Scott reiterated in his press conference Wednesday, while also pointing to the state’s existing voluntary contribution option on each tax return for those wealthier Vermonters inclined to help out.
“We have one of the most progressive tax (systems) in the country,” Scott said. “I think we should think long and hard about what this really could mean to the state.”
In the know
Environmental advocates and people impacted by Parkinson’s disease gathered in the Cedar Creek Room on Wednesday for a press conference in support of H.739, a bill that would ban the herbicide paraquat.
People who spray paraquat are twice as likely to develop Parkinson’s, according to a National Institutes of Health study. The bill passed the House without opposition and now sits in the Senate Agriculture Committee.
Scott Faber, who helps lead lobbying for the national advocacy organization Environmental Working Group, said that more than 70 countries already ban the herbicide.
“We understand that farmers need tools in the toolbox. The good news is that Vermont farmers have plenty of tools to combat weeds,” Faber said. “The toolbox is full and overflowing. Farmers don’t need a tool that can travel miles away from their farms and increase the chance that Vermonters will develop Parkinson’s disease.”
— Ethan Weinstein
Grand Isle County’s top prosecutor Douglas DiSabito was cited Tuesday for drunken driving, according to a press release from the St. Albans Police Department.
Police officers received a call around 4:30 p.m. Tuesday alerting officers to respond to Franklin County Superior Court in St. Albans “for a report of a person in the building who may be under the influence of alcohol,” the release said.
Officers then made contact with Grand Isle State’s Attorney DiSabito and after “subsequent investigation” arrested him for driving under the influence of alcohol, the release said.
DiSabito is set to appear in court on May 4, according to the release. The court appearance is not listed on Franklin County court calendars.
Read more here.
— Charlotte Oliver
On the move
The House passed S.218 on Wednesday, a bill that would establish best management practices for road salt application in an effort to decrease salt use and runoff. The bill would also create certifications for commercial and municipal salt applicators. If someone received the certification, they would then have limited liability protection against snow and ice slip-and-fall lawsuits.
Some Republicans argued the legislation did not provide enough liability protection for applicators and property owners, among other concerns. The bill passed 85-54 and will head to the governor’s desk.
— Ethan Weinstein
On the trail
Former Vermont Judge Gregory Rainville is running for a Franklin County Senate seat as a Democrat.
Rainville is the second Democrat to announce his candidacy. Both Franklin County Senate seats are currently held by Republicans.
In 2023, Rainville announced his retirement from the bench after unnamed attorneys accused him of berating people in court.
— Ethan Weinstein
Department of corrections
Yesterday’s newsletter misstated when Act 181 was passed. It was passed in 2024. The song about the law, however, remains a banger.
