Working Vermonters face a serious affordability crisis as the cost of healthcare, education, and other basic needs continues to rise. Vermonters’ healthcare premiums are now the highest in the nation. Vermonters spend 19.6% of their income on health care, compared to the national average of 7.9%.

These skyrocketing costs are exacerbated by Trump’s decision to end enhanced premium tax credits for plans offered through the Affordable Care Act exchange. Additionally, Trump’s cuts to Medicaid could result in 10% of the state’s 170,000 Medicaid recipients losing their healthcare. And other changes to Medicaid policy mean that State revenues through hospital taxes will slowly erode our ability to provide health care to lower-income, young, and older Vermonters. Meanwhile, rising healthcare costs are placing tremendous pressure on municipal and school district budgets, driving up working Vermonters’ property taxes. A chronic lack of investment in Vermont’s aging public school infrastructure has resulted in more than $6 billion in school construction needs – further driving up property taxes.

Meanwhile, the wealthiest Vermonters are getting richer as they reap the windfall from Trump’s tax cuts. As a result of the extension of those tax cuts, the richest 1% of Vermonters are expected to save over $200 million in federal taxes, while the top 5% are expected to save over $440 million. The richest 10% of Vermonters now hold nearly half of Vermont's total income – the highest level of income inequality in the state since the Gilded Age. The richest 5% of Vermont households have average incomes 9.6 times as large at the bottom 20% of households and 3.7 times as large as the middle 20% of households.

This state of affairs cannot continue. The wealthiest Vermont residents must pay their fair share of taxes so that working Vermonters can continue to afford to live in this state – and not just live but truly prosper.

The PROSPER Act (H.794), introduced in the Vermont House by Rep. Kate Logan, would claw back the federal tax revenue gifted to the richest Vermonters by the Trump administration and use those funds to provide healthcare to all Vermonters free at the point of service, and build safe, modern public schools for Vermont’s children. Specifically, H.794 would:

1. Impose a 2% income tax surcharge on individuals making $250,000 or more per year and an additional 6% surcharge on individuals making $500,000 or more per year.
2. Impose a Wealth Transfer Tax of 4% on the net investment incomes of high-earning individuals, estates and trusts.
3. Create additional property tax brackets and raise taxes on second homes.
4. Combined revenues from the income and wealth taxes would go towards funding the implementation of Act 48 and finally realizing universal healthcare for all Vermonters.
5. Revenue from the second-home tax would go towards school construction aid to address Vermont’s aging public school infrastructure.

Vermont’s budget issues are not simply “the harsh reality.” They are a consequence of deliberate choices by people in power to prioritize the rich at the expense of working class Vermonters. H.794 would raise taxes on the richest 5% of Vermonters to lower costs and provide essential services for all Vermonters.

Pass the PROSPER Act to fund Vermont's future!