Solons discuss options
Rutland Herald
Mullin joined Rep. Peter Fagan, R-Rutland, at a legislative breakfast Monday to describe the tax package recently sent from the House to the Senate. The event was organized by the Rutland Region Chamber of Commerce.
Fagan said the bill, H528, included a cap on itemized deductions of 2½ times the standard deduction and a “bracket pull up” in which everyone who reached the income threshold for the 8.9 percent tax bracket pays 8.9 percent on their entire income rather than just on the income exceeding the threshold.
It included an increase in the cigarette tax of 50 cents a pack and expands the rooms, meals and entertainment tax to cover vending machines and candy. Fagan said the definition of “candy” would include beer nuts and yogurt-covered raisins but nothing that requires refrigeration or contains flour.
“Kit-Kats contain flour,” he said. “If you like Three Musketeers, you’re going to pay a tax. If you like Kit-Kats, you’re not. ... You go in to get some Nestle’s chocolate chips to make chocolate chip cookies, you’re going to pay a tax.”
Mullin predicted the failure of the candy tax “because it would be a nightmare for stores,” but said he expected Vermont would join several of its neighboring states in taxing bottled water. Mullin also said that Montpelier is operating under an assumption — with which he disagrees — that the status quo on spending has to be maintained.
“Until we’re willing to sacrifice some programs, it’s not going to stop,” he said. “I think we need to dig within ourselves and find out what are the core things the state should be doing.”
Mullin said he would support “some type of revenue adjustment” to make sure the state doesn’t miss out of federal road and bridge money. He said there would be more talk on deductions, and that charitable giving was probably safe while real estate was probably on the table.
In the discussion that followed, one audience member directed a question not at either legislator but at Rutland Economic Development Corp. executive director Jamie Stewart, asking if Vermont’s tax burden was an impediment to attracting businesses.
“I’m more concerned, honestly, with the move in electric rates,” Stewart replied. “For a long time, Vermont was the lowest power cost state in New England — New England being the highest power-cost region.”
Stewart said Vermont’s power costs have been relatively steady while other states’ have spiked and dropped, but that they had been steadily rising in the last few years, which he said corresponded with the push for more renewable generation.
“What I haven’t seen anyone do recently is look at New Hampshire,” he said. “Everyone likes to talk about how New Hampshire doesn’t have some of the taxes Vermont does. Well, they still have a government.”
Side-by-side comparisons in the past have shown, according to Stewart, that when all taxes and fees are added together, Vermont and New Hampshire have similar burdens.
“I’ve never had a company tell me they’re not coming to Vermont because of the taxes,” he said. “I have had them say they’re not coming because of the burden of permitting or the cost of power.”
Comment: Mullin seems to be pretty sensible in that he does not agree with "Montpelier's" stance of maintaining the status quo in spending....while tax receipts are down. I whole heartedly agree. This state needs to live within its means. These tax increases are only the beginning. The elephant in the room is the upcoming single payer health care system. The powers that be are unwilling to discuss it because they know they will have to significantly increase taxes pay for it. If you want universal health something else has to be sacrificed. There is not an endless stream of tax money they can tap. People are already leaving this state in droves. Increasing taxes further is not going to stop that trend.
Vito
No comments:
Post a Comment