Vermont wants to fix income inequality by raising taxes on the rich

Vermont, known for tackling progressive issues, has a new goal in sight: Adding new taxes that would target its wealthiest residents, aiming to tackle growing income inequality and to ensure that the rich are paying their fair share. 

Lawmakers in the state this week introduced a pair of bills that would add two wealth taxes. The first would imposed a 3% tax on individuals with adjusted gross income of more than $500,000. The second would add a tax on capital gains on assets above $10 million.

Vermont isn't the first state to propose wealth taxes, with eight states last year proposing adding levies on the rich with the goal of raising billions to fund social programs. There's also been push on the national front, from the likes of President Joe Biden and Sen. Elizabeth Warren, to create a federal wealth tax.