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Don't Vermont sales tax exemptions make Vermont Sales tax Progressive?
I was going through the tax laws of Vermont and I noted the 21 pages of exemptions to the sales tax. Now we were always taught the sales tax was evil because it taxed the basic needs - and since basic needs are a higher percentage of a poor persons income, the rich paid too little. But of course if you exempt food, clothing, rent, utilities, medicine/drugs, the sales tax becomes progressive.
As far as I can tell each item of clothing costing less than $110 has no sales tax.
Likewise, no tax on:
Service contracts
Drugs intended for human use, durable medical equipment, mobility enhancing equipment, and prosthetic devices and supplies used in treatment intended to alleviate human suffering or to correct, in whole or in part, human physical disabilities.
Agriculture items used for raising of agricultural or horticultural commodities for sale.
Casual sales.
Sales of food, food stamps, purchases made with food stamps, food products and beverages sold for human consumption off the premises where sold.
Sales of newspapers and sales of tangible personal property which becomes an ingredient or component part of or is consumed or destroyed.
Rentals of furniture in furnished apartments or houses for residential use.
Sales of electricity, oil, gas and other fuels used in a residence for all domestic use including heating.
Sales of electricity, oil, gas and other fuels used directly and exclusively for farming purposes.
a home or business energy system on a premises not connected to the electric distribution system of a utility regulated under Title 30 and that otherwise meets the requirements of 30 V.S.A. § 219a(a)(3)(A), (C), (D), and (E); or
a hot water heating system that converts solar energy into thermal energy used to heat water, but limited to that property directly necessary for and used to capture, convert, or store solar energy for this purpose.
Sales of new personal computers and included software packages, for use exclusively in the Vermont business and directly in the activities defined in section 5930k of this title, if purchased by a high-tech business as approved by the Vermont Economic Progress Council.
and it goes on for 21 pages - and of course there is the easy not taxable clothing list for dummies section that is in A, B, C format: Aprons
Athletic supporters
Baby Buntings
Bathing suits (but not diving gear, wet suits, etc.)
Beach capes and coats
Belts, buckles, suspenders
Bibs
Bowling shirts
Bridal apparel and accessories
Coats and wraps
Costumes
Coveralls
Choir and clerical vestments
Dresses, gowns
Dress shields
Ear muffs
Formal wear
Garter belts
Girdles
Gloves, dress, driving, general purpose work, cold weather, ski, snowmobile, (but not gloves such as welding gloves or special purpose sports gloves such as batting gloves, mitts, hockey gloves. Also not latex gloves or sanitary gloves designed for protection in special activities.)
Gym uniforms
Hair bows
Head and neck scarves
Hats, caps, turbans, millinery, yarmulkes (but not hard hats, or protective helmets)
Handkerchiefs
Hosiery, socks, garters
Hunting clothes (camouflage or blaze orange)
Hoods and hooded garments
Incontinence briefs
Jackets, windbreakers
Jogging apparel
Lab coats
Leg warmers
Leotards, tights
Lingerie
Neckwear, ties, scarves
Nightgowns
Ponchos
Rain coats, slickers, hats, (not umbrellas)
Shoulder pad for dresses or jackets (not sports equipment)
Ski pants
Sports bras
Sweat bands
Stoles
Tennis clothing
Underwear
Uniforms: band, military, professional, scout, sports uniforms suitable for ordinary wear. (The use of a team or sponsor’s name or a style recognized as associated with a given sport does not make a uniform unsuitable for ordinary wear.)
Work clothes
Now most everything else that is sold and not listed in the 21 pages is taxed. So is this a progressive sales tax, or a regressive sales tax?
:-)
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