Elections

Janoo proposes recouping Trump tax cuts from wealthy Vermonters to pay for health care

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Gov. Phil Scott responds to question by Vermont Public debate moderator Mikaela Lefrak as Democrat candidate Amanda Janoo looks on in the October 31 debate.

By Guy Page

Democratic gubernatorial candidate Amanda Janoo says she would raise state income taxes on wealthy Vermonters to recoup the federal tax cuts they received under President Donald Trump’s One Big Beautiful Bill, using the revenue to help pay for universal primary and preventive health care.

During an October 21 Vermont Public gubernatorial debate with Republican Gov. Phil Scott, Janoo said the proposal could raise an estimated $260 million annually.

Janoo has previously proposed an 8% income tax surcharge on earnings above $500,000 and a 2% surcharge on earnings above $250,000.

She said she has asked wealthy Vermonters whether they would be willing to give up their federal tax savings to support health care.

“Would you be willing to contribute the equivalent of the amount you just got back from the big beautiful bill in terms of tax cuts, in order to ensure that everybody, not only in your community but in the state, could have access to a good local doctor and mental health provider?” Janoo said.

“And thus far, everybody I’ve spoken to would be happy to contribute that.”

Janoo also seemed to promise she would not support raising income taxes on middle-class taxpayers: “It’s really important to just make clear that with all of my proposals, I’m not going to increase taxes for working and middle class Vermonters. In fact, I’m going to help to reduce the property tax burden for residential Vermonters.”

Janoo did not say she would veto, or strongly oppose, legislation raising taxes on the middle class – just that as governor she would not be proposing them. 

Janoo said preliminary estimates developed by Public Assets, a Vermont economic policy organization, indicate that recouping the federal tax cuts through state taxation could generate about $260 million.

She said the money would help finance a universal primary and preventive health care system, which she has previously estimated would cost about $320 million annually.

Janoo also claimed that providing universal primary care could eventually save Vermont as much as $300 million, although the debate did not establish how those savings would be calculated or realized.

Under her proposal, participating doctors, nurses and mental health providers would receive salaries rather than bill patients and insurers for each service. Janoo said the program could begin with pilot projects in rural communities, where the lack of access to health care is most pressing.

Scott questioned whether taxing wealthy residents could generate enough money to pay for Janoo’s proposal. He said Vermont has about 16,000 tax filers earning more than $250,000 and about 1,300 earning more than $1 million.

He also warned that some high-income taxpayers could leave Vermont if their taxes increase.

“We don’t have that many rich people in Vermont. And I’m not sure how many we want to lose over the next few years,” Scott said.

Scott pointed to former Democratic Gov. Peter Shumlin’s unsuccessful effort to establish a statewide single-payer health care system, saying Vermont could not afford another such experiment.

Janoo acknowledged that Vermont cannot immediately afford a full universal health care system but argued that publicly funded primary care would be a practical first step.

The debate left unanswered whether the proposed $260 million in additional tax revenue would cover the estimated $320 million annual cost, particularly if mental health services and other benefits increase the price.

Scott favors using existing provisions of the federal Affordable Care Act to reduce insurance premiums rather than creating a new publicly funded system.

Disagreement on nuclear power

Gov. Phil Scott said Vermont should keep the door open to nuclear power, particularly small-scale nuclear reactors being discussed by New England governors. Scott said nuclear power produces electricity without carbon emissions and provides reliable baseload power. Democratic challenger Amanda Janoo opposes nuclear power, citing unresolved nuclear waste concerns and radioactive waste stored at the former Vermont Yankee plant. Scott disputed Janoo’s claim that Vermonters had decided to close Vermont Yankee, saying the plant’s owner made that decision.

Buying more electricity from Canada

Scott said Vermont already purchases hydroelectric power from Hydro-Québec and is exploring opportunities to purchase electricity from another Canadian province, which he did not identify. Scott said Vermont would need to improve transmission infrastructure, including replacing the Highgate converter station, to expand electricity imports.

Scott Proposes Changing Vermont Senate Representation

Scott said he would favor a constitutional change giving each of Vermont’s 14 counties two state senators, similar to the U.S. Senate’s equal representation of states. He argued that population-based representation gives Chittenden County too much influence while rural areas, including the Northeast Kingdom and southern Vermont, lack adequate representation.

“We don’t have enough representation in the rural areas of our state,” Scott said.

Scott acknowledged the proposal was unlikely to happen, calling it something he would do if he had a “magic wand.” The change would replace Vermont’s current 30-member Senate with a 28-member body and face constitutional obstacles because of federal requirements for population-based legislative representation.

Scott challenges Janoo on ‘degrowth’

Gov. Phil Scott challenged Democratic gubernatorial candidate Amanda Janoo on her previously expressed support for degrowth, an economic philosophy that calls for reducing production and consumption in some sectors. Scott quoted Janoo as saying, “We need to stop growing and actually decline in a lot of areas.” Scott said that sounded like a recession, recalling his 35 years in the construction business and the hardship caused by economic downturns. “People lose their homes, they lose their jobs,” Scott said. He asked Janoo to explain how her approach would avoid those consequences.

Janoo responded that she identifies more with a “wellbeing economy perspective than necessarily a de-growth one.” She said economic success should not be measured solely by gross domestic product or stock market performance, especially when many people cannot afford basic needs. Janoo said Vermont needs growth in food production, energy, housing, transportation and primary care services. However, she argued that economic growth should be directed toward meeting people’s needs while protecting the environment. “Any discussion of growth should make clear growth of what and why,” Janoo said.

The two candidates face voters in the November 3 general election.


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