H.732 is a proposed bill that aims to introduce two new marginal income tax brackets for individuals and married filers. Specifically, individuals earning over $200,000 and $400,000, as well as married couples earning over $400,000 and $800,000, would be subject to an additional one percent tax on income within these brackets. The revenue generated from these new tax rates is intended to be allocated to the Education Fund, with a focus on increasing the property tax credit for taxpayers whose household income is less than $115,000 per year.

The bill reflects a strategic effort to enhance funding for education while providing financial relief to lower-income households through increased property tax credits. By targeting higher income earners, the legislation seeks to create a more equitable tax structure that supports educational initiatives in Vermont.