The April 15 tax filing deadline is fast approaching. As we all work on this much-maligned national homework assignment, some of us start to wonder exactly how this money funds the government. No matter your perspective on taxation and government spending, it can be headache-inducing to track your tax dollars.
On Monday's Vermont Edition, Mikaela Lefrak spoke to Vermont's new Tax Commissioner Bill Shouldice about the state's coffers and what's ahead for Vermont's taxpayers.
"What I've heard repeatedly, both leading business and listening to the folks in Vermont, is what people want is, is affordability," Shouldice said. "The subtext of that really is predictability and stability."
Shouldice was by Gov. Phil Scott in February. He previously served as the president and CEO of the Vermont Teddy Bear Company and the Vermont Country Store, and was Howard Dean's secretary of commerce.
One of the main endpoints of Vermonters' tax dollars is the general fund 鈥� "almost 2.2 billion dollars that's collected," Shouldice explained. That money comes from personal income taxes, corporate income taxes, and rooms and meals.
Vermont's government uses General Fund revenue for most of its programs, Shouldice said. "That's generally to fund state government and everything that we see here and need 鈥� for both a safety net for those less fortunate to make sure that they're supported, as well as the other things, from roads and bridges and the funding of general government, human services, and the list goes on."
About 2.4 billion dollars goes to the education fund. Shouldice said the money comes from three different buckets of taxes: the sales and use tax and two types of property tax, homestead and non-homestead.
Property taxes are collected at the local level, Shouldice explained. "You pay your property tax bill two, three, four, times a year to your municipality, and then it gets allocated, retained by the municipality, and the rest of it goes to Montpelier."
The Trump administration's huge cuts to federal spending and proposed tax bill are not helping with the sense of stability and predictability that Shouldice's department aims to instill.
"I don't think that's good for anybody, honestly," Shouldice said. "We have to really understand the impact that federal cuts, or things like the government not passing a continuing resolution to be able to fund the existing federal programs that we have right now. "
Vermont relies heavily on federal funds for health care, infrastructure projects, education and more. Some Democratic lawmakers in Montpelier are considering raising state income taxes to fill the gap.
When asked how the Scott administration will try to adapt Vermont's state budget if there's a significant drop in federal funds, Shouldice said Scott has been clear on his views about raising taxes. "That's not an option. Living within our means is."
Broadcast live on Monday, March 31, 2025, at noon; rebroadcast at 7 p.m.
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