Despite Vermont small businesses struggling under one of the least competitive tax climates in the country, many lawmakers think the state still needs more.

Proposals to raise taxes on small businesses and workers are piling up at the State House in Montpelier. Below is a look at a few of the bills that would worsen Vermont’s status as a high tax, low growth state.

You can see a list of sponsors and more information by clicking on the link at the bill number.

INCOME TAX HIKES

H.794: 2% surtax on federal AGI over $250,000 and 6% surtax on federal AGI over $500,000. The surtax is applied regardless of filing status and could be construed to be cumulative over $500,000.

The combined rate for income over $500,000, including pass-through business income, would be 14.75% or 16.75% depending on whether the surtaxes are cumulative. Either rate would easily be the highest in the country.

This bill also imposes a 4% “Wealth Proceeds Tax” on income over $125,000 for those filing married separate, $200,000 for individuals, and $250,000 on married joint. Wealth Proceeds means income subject to the federal Net Investment Income Tax (NIIT), as well as exclusions from that and other federal taxes.

Proceeds from these taxes would be deposited into a school construction aid fund.

H.621: Adds two new income tax brackets that would increase the top rate to the highest in the country.

The rates would be effective for tax year 2026.

H.732: 1% surtax on income between $200,000-$400,000 for individuals and $400,000-$800,000 for married filers, and a 2% surtax on income above $400,000 for individuals and $800,000 for married filers.

Proceeds from the tax are dedicated to the property tax credit program.

SALES, GAS TAX HIKES

H.863: Requires retailers to collect a 30-cent retail delivery fee on most tangible goods delivered to homes or businesses. Proceeds dedicated to stare aid for town highways.

Also allows local governments to adopt a 1% tax on gas and diesel. Municipality keeps 70%, state Transportation Fund gets 30%.

This bill appropriates money for various programs, including rebates for electric cars and electric bicycles.

S.286: Imposes 2% surtax on meals, rooms, and alcohol. Proceeds go to school construction aid.

“WEALTH” TAX

H.620 establishes a commission to study the imposition of a wealth tax in Vermont. Wealth is not defined and no threshold of wealth or untaxed gain is identified in the bill.

Among other powers, the commission is tasked with identifying ways to tax seasonal resident income and capital gains taxed elsewhere and potentially limiting carry forward of losses.

Wealth tax proposals elsewhere seek to tax active investments, property and equipment, and other unrealized gains. They are not limited to liquid cash holdings or stock investments.

Later this year, Californians will vote on a one-time 5% net wealth tax aimed at billionaires that is already having adverse impacts on state tax revenue.

While California has roughly 200 billionaires in the state, Vermont reportedly has only one. A similar tax here would need to have a much lower net worth threshold to raise a meaningful amount of revenue.