An act relating to creating a new income tax bracket

This bill (H 77) creates a new 8.75% income tax bracket for Vermont taxpayers earning above $237,950 annually (for married couples filing jointly), with corresponding thresholds for other filing statuses. It directly affects higher-income earners by increasing their tax rate on income above these thresholds. Revenue from this new bracket will be allocated as follows: 2% to the Education Fund, 1% to the Transportation Fund, and 1% to the Higher Education Endowment Trust Fund. The bill also updates annual inflation adjustments for tax brackets using the Consumer Price Index. The bill is currently pending in the Committee on Ways and Means.