MONTPELIER, Vt. — Republican Gov. Phil Scott’s administration is hoping to simplify Vermont’s tax filing system and insulate residents from a state tax hike created by the federal tax changes.
State officials said Friday that due to the federal tax reform many Vermonters might pay slightly less in Vermont taxes, but nearly half would pay significantly more — a total of $42 million more.
Officials say middle income families with children would be the most affected.
The proposal would move Vermont’s tax system to be more closely tied to adjusted gross income instead of federal taxable income. It also would reinstate personal exemptions, at $4,000 each, create an income deduction and a 5 percent tax credit for charitable contributions.
The administration is discussing the plan with lawmakers.