An act relating to new income tax brackets
H.732 is a short-form Vermont bill that would create two new marginal personal income tax brackets. For individual filers, the new brackets would begin at $200,000 and $400,000 of taxable income; for married filers, they would begin at $400,000 and $800,000. Income within those brackets would be taxed at an additional 1 percent, meaning the bill would increase the tax rate only on income above those thresholds rather than changing rates across all income.
The bill directs the additional revenue to the Education Fund. The stated purpose is to use that revenue to increase the property tax credit for taxpayers with household income below $115,000 per year, so the measure links higher-income taxation to property tax relief for lower- and middle-income households. As introduced, the bill is framed as both a revenue-raising and targeted tax-relief measure.
If enacted, H.732 would amend Vermont’s personal income tax structure by adding two higher marginal brackets for high-income taxpayers. It would affect individual and married filers with taxable income above the stated thresholds, while leaving lower-income taxpayers unchanged. The bill would also change the flow of revenue by dedicating the new receipts to the Education Fund and using that funding to expand the property tax credit for households under the income cap, potentially reducing property tax burdens for eligible taxpayers.
No committee transcripts or recorded votes were provided, so there is no documented debate or vote history to gauge support or opposition. Based on the bill text alone, the measure appears to be presented in a policy-neutral way as a targeted tax increase on high earners paired with property tax relief for lower-income households. The absence of recorded legislative discussion means the overall sentiment cannot be assessed beyond the bill’s stated purpose.
The likely points of contention are the creation of new higher income tax brackets and the use of those revenues for education-related property tax relief. Supporters would likely emphasize progressivity, school funding, and relief for households below the income threshold, while opponents may object to higher taxes on upper-income filers, concerns about tax competitiveness, or the earmarking of revenue. Because no transcripts or votes are available, no specific lawmakers or stakeholder groups are identified in the record provided.