To the editor: Childcare payroll tax making a positive impact

Dear Residents of Athens, Chester, Grafton and Windham,

As I am out and about in the community, talking with constituents, many have asked about the new payroll tax,  Act 76.

In the 2023 legislative session the legislature passed Act 76.  This Act is already helping to ease the Child Care Crisis that Vermont is facing.  I voted for this because I see it through the lens of a small business owner and a working mother who needed childcare for my children.  Unemployment is historically low; Vermont businesses need workers.

When quality childcare is available, we have a larger workforce. That larger workforce also pays income tax, which provides taxpayers with a return on their investment: More people working means more tax revenue.  More tax revenues mean the cost of running our government for the provision of necessary services is spread across more individuals.

Higher quality childcare translates to Vermont children being better prepared for school, which provides for even more return on our investment because children who are school ready demand less resources.  Children who have learning disabilities when identified early have better outcomes.  All of this is a win-win situation for Vermont’s working families and for the childcare industry and our schools.

I was proud to vote for ACT 76 and will continue to support working families.

We have already heard from working families and community leaders that this investment is making a positive impact on our communities.

This initiative has been paid for by a nominal statewide payroll tax of .44% starting on July 1.  Employers are responsible for .33% and employees .11%.  Employers do have the option to cover the full amount if they so desire.  The funds are invested in a Child Care Contribution Special Fund.  We will see more families able to access these funds in October when the program is further expanded.

I’m always appreciative to hear your perspectives and look forward to meeting with more of you over the course of the next few months.

Heather Chase
State representative
Windsor-Windham District