Tax hike will hurt middle class
Tax hike will
hurt middle class
I recently read that Governor Shumlin is in support of raising the current state income tax level in order for our state to cover the proposed state-run health care cost. I am concerned about the lack of involvement of citizens in this state that should be opposed to any tax increase.
I feel a lot of citizens believe they are unaffected because the common belief is that the most wealthy will shoulder the brunt of any tax increase. This is a misconception, the very wealthy do not pay income tax due to the fact that their money is mostly generated from investment income, which is taxed at the flat rate of capital gains. So, the very, very wealthy, which do not receive income through payroll, will be exempt from paying any increase in taxes. People with means, when faced with higher taxes, also have the ability to leave the state for better areas with lower or nonexistent state income tax, i.e., Tennessee. So, the tax increase will only truly affect the middle class hardworking citizens, already struggling with increasing energy cost, who choose to live here because of family roots and or a sense of home in Vermont.
And, a major question I have not been able to have answered by anyone yet, is why do we need a state-run health care system when President Obamaís federal-run system will supposedly cover all 50 states? Which he is also indicating will require an increase of our federal income taxes, which, by the way, are too high already.