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by Paul Dame
This week, life will get just a little less affordable for hundreds of thousands of Vermonters as the new payroll tax, effective July 1st, will become more evident when they look at their paystub this Friday. One estimate indicates we are garnishing the wages of Vermonters to the order of nearly $120 million per year. Both employees and even self-employed individuals will take home a little less starting with this week’s check.
The pitch made by the Democratic supermajority was that a new tax could subsidize child care workers, making it easier for parents to find child care and get back into the workforce. However, several problems with this plan mirror the issues we’ve had with higher education over the last 30 years. Like so many other times, Democrats are trying to make a problem go away by just throwing some money at it. But if university funding has taught us anything, it’s that if you just partially subsidize something without making other changes, you end up putting higher and higher costs on the student’s family instead of reducing the cost of providing the care.
It will cost just as much to provide care this month as it did last month. But parents will have a little less money to pay the bills, and child care providers are going to start taking home a little less money as well. Meanwhile, the child care center’s administrators have a little extra fluff in their budget, which they can spend on themselves or other programmatic or administrative costs. Nothing will prevent them from raising daycare costs to match the subsidy. Even if prices stay level, nothing in this bill will make new child care slots available, leaving many families still locked out of the benefit for a few years. And if there was expansion, many families who qualify for the subsidy will have their kids age out of eligibility for pre-K by the time there is enough net growth. Then those parents will be paying new taxes for the next 30-40 years for a service they no longer need and never used.
The Republican approach was to reduce the regulatory burden to make more care available. More competition will immediately create more openings and can put downward pressure on price and/or upward pressure on the value of the services. A few years ago, the legislature made changes that effectively ran rural care providers out of business. This is a common problem among regulatory-inclined Democrats from the Burlington-Montpelier corridor who don’t understand that both providers and parents from other parts of Vermont can’t afford to compete with the wealthiest parts of the state and that more informal care in a more decentralized setting is a better fit for places with a less dense population.
This is one of the reasons that Governor Phil Scott vetoed this legislation last year. Like so many other times, Republicans have put forward solutions that focus on controlling costs, but Democrats just want to increase taxes and do more spending to help their lobbyist friends. One of the reasons stopping a payroll tax was important is that once a new tax gets levied, it will never get eliminated. Today’s payroll tax of less than half a percent could easily grow to 1%, 2%, or 3% in a few years thanks to the inflation we’ve seen under the Democratic presidential administration. This single-digit tax might not feel like much, but when you stack it on top of our very high and progressive income tax, and you are using a smaller net income to pay ballooning property taxes that just grew by double digits, it all adds up.
Every new tax and every new regulation are like a barnacle that attaches itself to the hull of a ship. One or two don’t make a difference. Even a larger number may not make a big impact while there is plenty of water below. But when things dry up and we’re not as flush as we used to be, it gets easier and easier to run aground.
The author is an Essex Junction resident and chair of the Vermont Republican Party.
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Categories: Commentary, State Government, Taxes
Thank you for this… now send it to the Brattleboro Reformer. Would love to see if they have any stature to print it.
Also THE COMMONS (free paper, THE COMMUNIST) in Brattlebor0
Well, Vermont have you had enough yet of your ” Super Majority ” in the house,
apparently not as you keep voting for these kinds of inflated taxes, because you vote
these inept ” stupid majority ” in year after year……………..suckers.
Agenda-driven fools, and you are the money tree and they tap you until you dry up and move away, if you don’t die first !!
CHenry –
In the place of hurling invective, may I suggest you perform a little audit of your local voting rolls? Kevin Hoyt (candidate for Governor) claims that after auditing just the A’s and B’s in Bennington, he found enough fraud to show that the People had NOT voted these “representatives” into office. Seth Keschel says the Vermont voter rolls are exceeded only by Maine’s in their “dirtiness”.
Why, in 2022, was Malloy trailing by only 5% in the Rasmussen poll, yet swamped by more than 20% in the final tally?
Why couldn’t we get a SINGLE Republican elected to be one of TWELVE Justices of the Peace in Westminster? What do they have to do with voter rolls? Please find out.
suckers, didn’t you mean zuckers?
Speaking of voting in conservatives…why is it that Scott has not helped a single R get elected?? Why is it that Scott only attends the annual meeting if there is a Governor invited to speak from a different state. Why is it if Scott disagrees with a bill he just lets it pass instead of vetoing it???
Just remember there are folks in Vermont who find it easier to leave than kick out the communists. And they most likely are ones paying the majority of the taxes.
Phil Scott is only as conservative as he can be given the moonbat majority Vermont voter situation. If he were any more conservative, he would be back running a construction company and we would have Gov. Zuckerman or Gov. Baruth, or Gov. Balint, or Gov. Krowinski…shall I continue?
Rich you did not answer my first question. Why is it that Scott at the top of the R ticket does not help a single R get elected or re-elected. This year was the first year in my memory he actually attended the GOP annual meeting. Since he became Gov R’s have lost seats in the house and senate. If he feels that alone and powerless one would think he would get out there and help. All I hear is crickets…..
We all know Scott is a RINO. This explains pretty much everything happening at the state house and most republicans don’t get help from him because he would loose his governorship if he helped republicans. He is not being voted in by republicans.
Democrats are the blood-sucking leeches of the human race, and they won’t stop until they take your ENTIRE paycheck, and dole you out a pittance. Vermont, which was once noted for its
pragmatism and hard work ethic, has now been completely infected and infested by the exact opposite. VOTE THESE PARASITES OUT, AND MAKE VERMONT GREAT AGAIN!!!
Many have left the state. I’m in Alabama between Pensacola FL and Mobile, 20 miles from the Gulf. So much to do, very Conservative. If you are 65 and own property, NO PROPERTY TAX. Ya they have a sales tax and income, but still is less than VT. I spend winters here since 2001, only 1500 miles separate. My area has very little storms. So much to do and see. Let VT sink into Champlain and in your rear view mirror. Easily done. I’m living on $420 rent a month (just raised) including elec, water, sewage. trash, wi fi. and great neighbors, good cell short distance to shopping. Fishing galore, great foods. Navy Blue Angles flying 25 miles away twice a week free, they sign autographs at the (best) Naval Museum in the states. Free twice a week, Tues & Weds. What does VT offer?
The only benefit in Montpelier are the black birds flying in and out of that bird cage. People are moving in. nine families a day. The south is being blessed with conservatives. I travel the state, 400 miles from Mobile to TN. Boone & Crockett trophy deer. VT is so small and stupid. Just research and expand your knowledge or stay in a VT rut. Life is worth it.
VT can’t keep you there alike CA where they will tax people that move out of state.
Such a declinf of kids attending VT schools, parents have moved.
On July 8th I sent the following e-mails to Bernie Sanders, Peter Welch, Becca Balint and my illustrious State Representative Emily Long abot the 14% property tax increase. I and other people I know got the same form letter reply from Bernie about equity and some other Commiecrat drivel and to contact my state legislators. I got no reply yet from Welch or Blaint. And I know I won’t get a reply from Emily Long who never replies to any correspondence sent to her. These people just don’t care. The only thing they care about is pushing their Communist agenda.
The e-mails
I have just read the latest newsletter from Senator Bernie Sanders lamenting the high cost of living in the state of Vermont. Has it ever occurred to the Senator that the same legislators of his political persuasion just passed a 13.8 percent property tax on the property owners of Vermont. It was vetoed by the governor and that veto was overridden by the legislature. Hey, Senator Sanders why don’t you pick up the phone and question this almost 14% property tax that the Vermont legislature burdened us with. This is no time to raise taxes.
I have just read the latest newsletter from Senator Bernie Sanders lamenting the high cost of living in the state of Vermont. Has it ever occurred to the Senator that the same legislators of his political persuasion just passed a 13.8 percent property tax on the property owners of Vermont. It was vetoed by the governor and that veto was overridden by the legislature. Hey, Senator Welch why don’t you pick up the phone and question this almost 14% property tax that the Vermont legislature burdened us with. This is no time to raise taxes.
I have just read the latest newsletter from Senator Bernie Sanders lamenting the high cost of living in the state of Vermont. Has it ever occurred to the Senator that the same legislators of his political persuasion just passed a 13.8 percent property tax on the property owners of Vermont. It was vetoed by the governor and that veto was overridden by the legislature. Hey, Congresswoman Balint why don’t you pick up the phone and question this almost 14% property tax that the Vermont legislature burdened us with. This is no time to raise taxes.
I have just read the latest newsletter from Senator Bernie Sanders lamenting the high cost of living in the state of Vermont. Has it ever occurred to the Senator that the same legislators of his political persuasion just passed a 13.8 percent property tax on the property owners of Vermont. It was vetoed by the governor and that veto was overridden by the legislature. Representative Long would you be kind enough to contact me to explain your reasons for voting for this property tax increase.
Emily Long is a piece of work… never answered me either.
Probably because for the most part does not actually live full time in Newfane, even though there is an actual house.
You know who’s income is tax free and isn’t paying a red cent of business taxes or any tax whatsoever? Drug dealers and their drug suppliers. When merchants of death run roughshod through the entire State with impunity, we can’t expect either party to do anything other than make the working class labor harder and pay more. Where are all the seized assets? Where is that money going? Also, let’s not forget about the the tax-exempt non-profiteers and their windfalls of grants and pork welfare from the Feds. Vermont: A cesspool of corruption and a grifter’s paradise.
Again I’m asking you Paul Dame, “What are you doing to get real Conservative Republicans elected in Vermont??? Anything??? You talk about problems but you are short on solutions!!!
How about getting the governor to remove the sanctuary city status off Vermont cities —-because of rising crime and we are not a harbor for criminals.
How about getting the governor to announce “only American citizens can vote in the federal 2024 elections in November and birth certificates and photo id’s are needed to verify it. If you break the law-you will be prosecuted!!!”Announce it now-stop the problem before it happens—be proactive!!!
If the so-called Republicans of the Vermont Republican Party are not backing and did not vote for or support the Republican nominee Donald Trump, then what can they really be called? They are playing both sides against the middle.
Donna- I agree 100% that we NEED signature verification and photo ID’ to register to vote. Unfortunately, changes to Vermont’s election laws lies with the legislature and not something they will likely do with the current SOS now in place. Someone else commented earlier about cleaning up a town’s voter check list. By law, it is up to the BCA and Town Clerk to perform a check-list update just prior to every election. Vermont election laws were updated in 2021 (Title 17). Every voter should make it a point to be familiar with this. Ask for a copy of your town’s voter checklist and review it. Then, go to the your town’s next BCA meeting and speak up.
I hope Trump wins – and withholds ALL Federal monies from states like VT that violate federal laws!!!!!!!! “Sanctuary” Cities & “Legalized” Marijuana Violate the US Constitution & federal law.
You are NOT an independent republic, VT! And if your radical loose-nut leftists Commies believe that they live in one — order them to relinquish their Social Security and their Medicare immediately!!!