{"id":491,"date":"2024-12-12T17:05:55","date_gmt":"2024-12-12T17:05:55","guid":{"rendered":"http:\/\/lengel.net\/crossetthill2\/?p=491"},"modified":"2024-12-12T18:18:55","modified_gmt":"2024-12-12T18:18:55","slug":"three-little-vermonters-analysis","status":"publish","type":"post","link":"http:\/\/lengel.net\/crossetthill2\/2024\/12\/12\/three-little-vermonters-analysis\/","title":{"rendered":"Three Little Vermonters: Analysis"},"content":{"rendered":"\n

Last week’s lesson<\/a> introduced three typical Vermonters — a teacher, a landlord, and an investor — as they were visited by the Big Bad Tax Man. Let\u2019s see how the taxman’s takings fit with the balance sheet of property and income of our three.<\/p>\n\n\n\n


<\/td>		Teacher<\/strong><\/td>Landlord<\/strong><\/td>Investor<\/strong><\/td>Total<\/td>
<\/td><\/tr>
Property Value<\/strong><\/td>
<\/td>
<\/td>
<\/td>		<\/td>
<\/td><\/tr>
Property, house<\/td>$300,000<\/td>$300,000<\/td>$300,000<\/td> $900,000<\/td>
<\/td><\/tr>
Property, other<\/td>$0<\/td>$0<\/td>$1,000,000<\/td>$1,000,000<\/td>
<\/td><\/tr>
Property total<\/td>$300,000<\/td>$300,000<\/td>$1,300,000<\/td>$1,900,000<\/td>
<\/td><\/tr>
Income<\/strong><\/td>
<\/td>
<\/td>
<\/td>
<\/td>
<\/td><\/tr>
Income, wages<\/td>$60,000<\/td>
<\/td>
<\/td>		 $60,000<\/td>
<\/td><\/tr>
Income, capital growth<\/td>
<\/td>
<\/td>		$40,000<\/td>$40,000<\/td>
<\/td><\/tr>
Income, rents<\/td>
<\/td>		$60,000<\/td>
<\/td>		$60,000<\/td>
<\/td><\/tr>
Income, Social Security<\/td>
<\/td>
<\/td>		$60,000<\/td>$60,000<\/td>
<\/td><\/tr>
Income total<\/td>$60,000<\/td>$60,000<\/td>$100,000<\/td>$220,000<\/td>
<\/td><\/tr>
1040 AGI income<\/td>$60,000<\/td>$6,003<\/td>$30,000<\/td>$96,003<\/td>
<\/td><\/tr>
Taxes<\/strong><\/td>
<\/td>
<\/td>
<\/td>
<\/td>
<\/td><\/tr>
Vermont Property tax<\/td>$5,100<\/td>$2,000<\/td>$5,100<\/td>$12,200<\/td>1.7% of value<\/td><\/tr>
Rebate<\/td>$0<\/td>$0<\/td>$2,000<\/td>$2,000<\/td>
<\/td><\/tr>
Net property tax<\/td>$5,100<\/td>$2,000<\/td>$3,100<\/td>$10,200<\/td>
<\/td><\/tr>

<\/td>
<\/td>
<\/td>
<\/td>
<\/td>
<\/td><\/tr>
Federal income tax<\/td>$7,200<\/td>$720<\/td>$3,600<\/td>$11,520<\/td>12% of AGI<\/td><\/tr>
Social Security tax<\/td>$4,800<\/td>$0<\/td>$0<\/td>$4,800<\/td>8% of wages<\/td><\/tr>
Total  Federal tax<\/td>$12,000<\/td>$720<\/td>$3,600<\/td>$16,320<\/td>
<\/td><\/tr>

<\/td>
<\/td>
<\/td>
<\/td>
<\/td>
<\/td><\/tr>
Vermont income tax<\/td>$3,600<\/td>$360<\/td>$1,800<\/td>$5,760<\/td>50% of Federal<\/td><\/tr>
Vermont sales tax<\/td>$2,000<\/td>$2,000<\/td>$2,000<\/td>$6,000<\/td>$2000 per family<\/td><\/tr>
Total Vermont tax<\/td>$10,700<\/td>$4,360<\/td>$6,900<\/td>$21,960<\/td>
<\/td><\/tr>

<\/td>
<\/td>
<\/td>
<\/td>
<\/td>
<\/td><\/tr>
Total Taxes<\/strong><\/td>$22,700<\/td>$5,081<\/td>$10,500<\/td>$38,281<\/td>
<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

From our Three little Vermonters, the State and Federal governments collect about $38,000 per year, most of it from the teacher. (A similar burden would apply to an office worker, a small business owner, a firefighter, a carpenter, a technician, a cook, anyone who earns their income in wages.) That\u2019s a heavy tax burden, heavier even than in the progressive countries of northern Europe. <\/p>\n\n\n\n

It\u2019s no wonder these middle-class families \u2014 the kind we need to strengthen Vermont\u2019s economy and society \u2014 find our state unaffordable and its tax burden inequitable. And it\u2019s no wonder that we see a growing influx well-to-do retired folks and real estate speculators moving into our Green Mountain State: they enjoy significant tax advantages. <\/p>\n\n\n\n

Between them the three own $1.9 million of property, and receive an income of $200,000. Yet Vermont collects only $10,000 from that property each year (most of it from the teacher), an overall rate of one-half of one percent. And from their income it collects $5760 (again, most of it from the teacher), an overall rate of about 3%. The effective Vermont tax rates for our three are:<\/p>\n\n\n\n

<\/td>Property tax rate<\/td>Income tax rate<\/td><\/tr>
Teacher<\/td>1.7%<\/td>6.0%<\/td><\/tr>
Landlord<\/td>0.6%<\/td>0.6%<\/td><\/tr>
Investor<\/td>0.2%<\/td>0.2%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Perhaps Vermont is overtaxing some of its citizens, and undertaxing others. <\/p>\n\n\n\n

Next week’s lesson will propose a simpler and fairer way to collect the funds that Vermont needs to operate its schools and highways and other necessary functions of government. A proposal that would reduce the tax burden for most Vermonters.<\/p>\n","protected":false},"excerpt":{"rendered":"

Last week’s lesson introduced three typical Vermonters — a teacher, a landlord, and an investor — as they were visited by the Big Bad Tax Man. Let\u2019s see how the taxman’s takings fit with the balance sheet of property and income of our three. Teacher Landlord Investor Total Property Value Property, house $300,000 $300,000 $300,000 … <\/p>\n

Continue reading “Three Little Vermonters: Analysis”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-491","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/lengel.net\/crossetthill2\/wp-json\/wp\/v2\/posts\/491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lengel.net\/crossetthill2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lengel.net\/crossetthill2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lengel.net\/crossetthill2\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/lengel.net\/crossetthill2\/wp-json\/wp\/v2\/comments?post=491"}],"version-history":[{"count":4,"href":"http:\/\/lengel.net\/crossetthill2\/wp-json\/wp\/v2\/posts\/491\/revisions"}],"predecessor-version":[{"id":495,"href":"http:\/\/lengel.net\/crossetthill2\/wp-json\/wp\/v2\/posts\/491\/revisions\/495"}],"wp:attachment":[{"href":"http:\/\/lengel.net\/crossetthill2\/wp-json\/wp\/v2\/media?parent=491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lengel.net\/crossetthill2\/wp-json\/wp\/v2\/categories?post=491"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lengel.net\/crossetthill2\/wp-json\/wp\/v2\/tags?post=491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}