Income inequality is already growing in Vermont. And if Congress has its way on tax reform, that problem will get worse.

Analysis released yesterday by the Institute on Taxation and Economic Policy shows that, like the House plan from earlier this month, the newly released U.S. Senate’s tax plan helps Vermonters at the top the most.

Nationally, the plan is heavily tilted in favor of upper-income households and profitable corporations.  The top 1 percent gets around one-fourth of the total tax cuts and the top 5 percent receive half of the tax cuts. In Vermont, 60 percent of the benefits go to the top 20 percent of taxpayers.

Under the Senate plan, the top 1 percent of Vermont taxpayers would on average get a tax cut of $21,910, growing to $29,820 by 2027. Meanwhile, the bottom 20 percent of taxpayers would save an average of $100 in 2019 and $200 in 2027.

Vermont’s unemployment held steady at 2.9 percent last month—the sixth-lowest rate in the nation. But that was the rate for all workers. For the last few years, joblessness among men has exceeded the rate for women by almost a full percentage point.           New launches Every year Vermonters start hundreds of businesses, but hundreds of businesses also close. Before the recession Vermont saw a net increase of just under 100 new business establishments each year. When the recession hit, the state lost more businesses than it gained. Read more
Tax cuts for the top 1 percent are 200 times larger than those for the poorest A 50-state analysis of the House tax plan released this week by the Institute of Taxation and Economic Policy (ITEP) reveals that the wealthiest 1 percent of Vermonters would receive the greatest share of the total tax cut in year one and their share would grow through 2027. The House leadership continues to tout this tax proposal, which will increase the federal deficit by $1.5 trillion over the next decade, as a plan to boost the middle class. Read more

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