On March 9, 2022

A tax break for Vermont families that benefits everyone

By Rep. David Durfee, D-Shaftsbury, member of the Ways & Means committee

Recently the House passed and sent to the Senate groundbreaking, bipartisan legislation to support parents and families. As part of H.510, the new Vermont Child Tax Credit would pay families the equivalent of $100 a month for every child in the household age 6 and under.

Nearly all Vermont families would qualify, making this the most far-reaching such legislation in the country.

The Child Tax Credit is designed as both an anti-poverty measure and an incentive for young families to put down roots in Vermont. It could be used to help with any of the expenses that parents face when raising small children — food, clothing, diapers, rent — or anything else. It will be available to parents or guardians with child care costs, but also to those who, out of choice or necessity, are staying home to look after their children themselves.

The credit would make Vermont’s already progressive income tax system even fairer. It would be fully refundable, meaning lower-income households who owe no Vermont tax would still receive a payment.

The majority of the tax cut would go to families earning under $70,000 — most of whom would see their Vermont tax liabilities reduced to zero. The credit would be structured so that it would not impact eligibility for other benefits. And it would phase out at household incomes above $200,000, meaning that middle-income families who might not qualify for other programs would be eligible.

Few families in Vermont with incomes over that level have young children, meaning that nearly every Vermont parent would benefit.

Once signed into law and fully implemented, families would receive two $600 payments annually for each eligible child — one in August, coinciding with the start of the school year, and one in the spring.

Is this the right time to lower taxes, and is this the right way to do it? Yes, and yes. The new credit comes at a crucial time, just as the popular, expanded federal child tax credit has expired. Thanks to a booming economy, state revenues are up and projected to remain strong, creating room for a carefully targeted program that reduces poverty, supports parents and children, and leaves enough resources to maintain and expand other programs.

Payments to families with young children can have a tangible impact on their well-being. A recent study projected that the expanded federal child tax credit would cut in half the number of children living in poverty. Separate research showed that infants’ brain activity was enhanced when low-income mothers received a cash stipend for the first year of their baby’s lives.

Raising a child is expensive, and Vermont frankly could use more children. Our school-age population began shrinking a generation ago, and the workforce shortage we have been experiencing since before the pandemic is, in part, a shortage of young adults.

Not only are we one of the oldest states in the country, but the birth rate among Vermonters of child-bearing age also ranks near the bottom. For parents considering staying or moving to Vermont, or adding to their families, the credit would provide an extra incentive that ends up helping everyone.

We are living through times that call for dramatic changes in our social compact, with resources that provide us with an opportunity to do so. The Child Tax Credit delivers on the promise to provide help where it will have the most impact, bringing us closer to an economy that works for all Vermonters.

Do you want to submit feedback to the editor?

Send Us An Email!

Related Posts

The public reality of private schools

June 25, 2025
Dear Editor, In their June 13 commentary, “The Achilles’ heel of Vermont education reform,” the Friends of Vermont Public Education state that, “Since the early 1990s, we have been operating two parallel educational systems — public and private.” The organization calls upon the Vermont Legislature to create “one unified educational system,” arguing that, “The current…

Alternative steps for true education reform

June 25, 2025
By Jim Lengel Editor’s note: Jim Lengel, of Duxbury and Lake Elmore, started teaching in Vermont in 1972, worked for the state board of education for 15 years, and retired back in Vermont after helping schools all over the world improve the quality of teaching and learning. Our executive and legislative branches have failed during…

Protect SNAP—because no Vermonter should go hungry

June 25, 2025
Dear Editor, As a longtime anti-hunger advocate, a former SNAP recipient, and a proud Vermonter, I am deeply alarmed by proposals moving through Congress that would gut the Supplemental Nutrition Assistance Program (SNAP), known here in Vermont as 3SquaresVT. If passed, these cuts would devastate thousands of families across the Green Mountain State that rely…

The Good, the Bad & the Ugly of H.454

June 25, 2025
By Sen. Ruth Hardy Editor’s note: Ruth Hardy, of East Middlebury, represents Addison County in the Vermont Senate. She wrote the following reflection (originally posted at ruthforvermont.com) on voting “no” on H.454, the eduction transformation reform bill that passed last week.  On Monday, June 16, the Legislature passed H.454, the education transformation bill that was…