Rep. Larry Sakowitz introduces short-form H.732 to raise marginal rates on high earners and target homestead relief

Representative Larry Sakowitz introduced H.732 to the Ways & Means Committee as a short-form proposal to increase marginal income-tax rates on very high earners and direct the proceeds toward targeted relief for homestead property owners.

"My bill is very, very simple, and it's simple on purpose," Representative Larry Sakowitz said. He described the measure as an initial concept that would increase the marginal rate on incomes above $400,000 for couples by 1 percent and add a further 1 percent for couples earning over $800,000, with individuals receiving half of those rate increases.

Sakowitz framed the bill as a response to growing property-tax burdens for ordinary Vermonters and widening income inequality, and said any revenue generated would be funneled to homestead properties eligible for income-sensitivity credits rather than replacing existing credits.

Committee members asked about revenue estimates and whether the surtax would supplement or replace existing property-tax credits; Sakowitz said formal revenue modeling would be required and described the filing thresholds as intentional choices to reflect higher incomes among married filers. He emphasized the short-form nature of the bill was meant to spark debate and further testimony rather than prescribe final legislative language.

No committee vote occurred; the bill was introduced for further study and possible subdivision into separate measures, as several committee members observed the proposal contains multiple policy elements that could merit standalone consideration.