Vermont lawmakers propose a 'wealth tax' for high income earners in the state

State lawmakers in Vermont are proposing legislation this week that would impose new taxes on the state's wealthier residents.

One proposal would tax those with a net worth of over $10 million on capital gains, while another would add a 3% marginal tax on incomes that go over $500,000 a year, according to The New York Times.

Both proposals are being sponsored by Vermont state Rep. Emilie Kornheiser of Brattleboro, chair of the Ways and Means Committee.

“The way our tax structure is set up, our middle class is carrying an undue burden, compared to folks at the top,” said Kornheiser in a news conference Wednesday, according to the Spokesman-Review. “We want to make sure that all Vermonters are paying their fair share.”

Other states that have also proposed "wealth taxes" include New York, California and Washington.

Democrats in Vermont have a supermajority in the state Legislature, but have a moderate Republican governor, Phil Scott. 

Scott said in November 2023 that Vermont's tax policy is already progressive.

“We have a pretty progressive tax policy in the state here already,” he told reporters. “I’m not sure how many more of the wealthy there are and how much more we’re going to reap from them without them moving.”