February 3, 2018

THANKS, PHIL:

Gov. Unveils Income Tax Reforms (Elizabeth Gribkoff, 2/02/18, VtDigger)

The Tax Department announced a plan on Friday to reduce the state tax burden on Vermonters who will be adversely impacted by a change in the federal tax law.

The plan would return an estimated $30 million in tax revenue to Vermont residents that would otherwise fill the state coffers in fiscal year 2019.

The Scott administration's proposal is in keeping with the governor's commitment to hold the line on tax increases.

The Agency of Administration Secretary Susanne Young said the plan will "insulate Vermonters as much as possible from the inadvertent tax hikes created by the federal tax reform."

The federal Tax Cuts and Jobs Act doubled the standard deduction but eliminated personal exemptions. Since the state's tax code is closely tied to federal standards, Vermont taxpayers now cannot claim personal exemptions on their state taxes. That means about half of Vermont taxpayers will pay significantly more in taxes.

Young said the Vermonters most impacted by changes to the federal tax code are "primarily middle-income families with children."

Married couples filing jointly and residents with incomes of between $50,000 and $300,000 will see the biggest tax increases if no changes are made to the state tax system.

Posted by at February 3, 2018 7:12 AM

  

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