Taxation Policies in Vermont, California, and New Hampshire
Vermont has the highest tax collections per capita at $6,356 and significant taxes on income, sales, property, and estates. California aims to fund education, healthcare, and infrastructure through its tax policies. New Hampshire heavily relies on high property taxes for funding local services. Alabama’s tax system is complicated, affecting tax filings negatively.
Tax Burdens Comparison
Tax burden analysis shows New York, Hawaii, and Vermont have the highest property tax burden, while New York, Maryland, and Oregon have the highest income tax burden. States with major cities often rely more on taxes for infrastructure and services.
Vermont’s Tax Situation
Vermont stands out with high taxes, including an income tax rate reaching 8.75%, a state sales tax of 6% (with potential local additions), and property taxes among the nation’s highest. A significant portion of tax revenue goes to public schools, although this expenditure does not seem to improve student performance significantly.
Vermont’s Tax-Friendliness
Despite its progressive state income tax structure, Vermont is not considered tax-friendly, especially for individuals. Pension income, bank account withdrawals, and transactions by retirees are fully taxed in the state.