$13.5 million in state income tax savings recommended
By Guy Page
Vermont’s forests will – for the first time – be an official part of the solution to meeting Vermont’s carbon reduction mandates, if Gov. Phil Scott gets his way.
Thursday at the State House, Gov. Phil Scott and Agency of Natural Resources Secretary Julie Moore provided a broad overview of their alternative plan to the Clean Heat Standard, which they say was rejected by voters in November.
Part of the plan is to factor in the carbon sequestration of Vermont trees in order to meet the Global Warming Solution Act’s emissions reduction requirements.
Moore said the administration favors an established ‘net accounting standard’ that would allow the State to “take credit for farms and forest and the important carbon sequestration work that they perform.” More specifics will be forthcoming.
Trees and other plants consume the C02 produced by people, animals and fossil-fuel combustion and emit oxygen – the opposite of people and animals. Vermont is 75% forest (4.46 million acres.) In fact, trees consume half of Vermont’s total C02 emissions, the report said.
At present, the Vermont Family Forest Program allows owners of privately-owned forestland to access a private ‘carbon credit’ market.
Two other aspects of the governor’s alternative to the Clean Heat Standard:
- Repeal the right of private action (right to sue) for failure to meet carbon reduction mandates. Vermont already faces one such suit, which consumes state time and money better spent on actual climate reduction programs, Moore said.
- Take the rule-making authority from the Vermont Climate Council and restore it to the administration.
ICE more active in Vermont? – Gov. Scott said he hasn’t heard of any increased federal enforcement of illegal immigration in Vermont since the Trump administration took office.
Income tax breaks proposed
Speaking at the press conference on the theme of affordability, Tax Commissioner Craig Bolio announced tax reform proposals that, together, would save taxpayers $13.5 million if enacted by the Legislature:
Raise the [child tax credit] Age – expand the state $1000/child tax credit to cover low and middle income families with children up to age six. At present the maximum age is five.
Match earned Income tax credit with feds – Expand Vermont’s earned income tax credit (for low/middle-income people without young children) to 100% of the federal earned income credit. The present rate is 38%.
Increase income tax exemption on social security benefits – The new threshold would be $65,000 for single filers, $85,000 filed jointly.
Exempt military pension – 35 states now exempt military pension from state income tax. Many military retirees retire between the ages of 35-50 and then go back to work. Vermont can affirm its support for military retirees and attract skilled, hard-working employees and community members.
What’s good for Travis? A VDC reader asked us to ask the governor how his $9 billion, no tax-and-fee increase proposed budget would benefit Travis, the hard-working middle income Vermonter whom Scott made a cause celebre during affordability talks last year.
So we asked the governor. He answered:
“Travis might benefit from the 13.5 million in tax relief. He might also benefit from [funding for] the housing we desperately need…. to have more taxpayers, not more taxes, which In time will alleviate the tax burden on Travis.”
