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Once S.17 was under the control of the House Ways and Means Committee, the bill was never brought up for a vote.
by Tom Davis for Compass Vermont
For eight years, a widely popular, tri-partisan bill to exempt military retirement pay from state income tax languished in the Vermont State House. Despite overwhelming support from lawmakers, a Republican governor, and a broad coalition of veteran and business groups, the measure was repeatedly stalled.
The delay, which cost Vermont dearly in both skilled workers and economic vitality, wasn’t due to a lack of legislative will, but to the determined opposition of two powerful Democratic committee chairs who acted as legislative gatekeepers, effectively overriding the majority of their colleagues.
This is the story of how Senator Ann Cummings (D-Washington) and Representative Emilie Kornheiser (D-Brattleboro), citing principles of tax equity and fiscal caution, used their procedural power to single-handedly halt a critical economic development tool, exacerbating Vermont’s demographic crisis until a clever legislative maneuver finally forced their hand.
The battle ended in 2025 with the passage of S.51, a comprehensive tax relief package signed into law by Governor Phil Scott. But the eight-year standoff preceding this victory highlights a deep-seated ideological conflict within Vermont’s progressive identity and underscores how procedural power can thwart the popular will.
The Overwhelming Support and the “Committee Bottleneck”
The push to eliminate the tax on military pensions was not a fringe movement. It was a top priority for Governor Scott since he took office in 2017. By the 2025 legislative session, the support was undeniable. A standalone bill in the House, H.483, garnered 72 co-sponsors—just three votes shy of a majority in the 150-member body. Its Senate counterpart, S.17, secured a decisive 21-sponsor supermajority in the 30-member chamber.
Proponents argued that Vermont’s policy was actively harming the state. As one of the last states in the nation to fully tax military pensions, Vermont was losing a critical demographic: military retirees. These individuals, often in their late 30s and 40s, represent a disciplined, skilled, and readily available workforce that a state with a shrinking labor pool desperately needs.
“We are in a workforce crisis,” Governor Scott repeatedly stated, framing the exemption as an “economic and workforce development tool.”
Despite the immense support, the bills were sent to the legislative “money committees” to die. H.43 was assigned to the House Committee on Ways and Means, chaired by Rep. Kornheiser. S.17 went to the Senate Committee on Finance, led by the long-serving Sen. Cummings. Once in their control, the bills were never brought up for a vote. Frustrated lawmakers complained that the chairs refused to “take the bills off the wall,” a colloquialism for killing legislation by never scheduling it for a hearing.
The Gatekeepers: A Clash of Philosophies
The two chairs, while united in their opposition, offered different rationales for the roadblock.
Representative Emilie Kornheiser, a Brattleboro Democrat, represents a faction of the party focused on using the tax code to fund robust social programs and correct economic inequality. A proponent of a wealth tax, Rep. Kornheiser’s public record shows a consistent focus on raising revenue, not cutting it. Forgoing the estimated $2.5 million from the military pension tax ran directly counter to her core belief in maximizing the state’s capacity for social investment. While her committee’s official reason for inaction was being preoccupied with education finance reform, this conveniently aligned with her ideological opposition to creating a new tax expenditure.
Senator Ann Cummings, a veteran legislator from Washington County, anchored her opposition in a more traditional argument of tax fairness. She publicly and consistently questioned why military pensions should be the only form of retirement income to receive a full exemption. Her stance was rooted in a belief that the tax code should be applied universally, without creating special “carve-outs” for one group, no matter how deserving. “We have to recognize all kinds of service,” she famously stated, “not just the ones that come with uniforms.”
This philosophical stand, however, ignored the unique economic imperative presented by the military retiree demographic and the near-universal consensus among other states that had already made this specific carve-out.
The Tangible Cost of Delay
The eight-year legislative standoff was not a victimless procedural debate. It inflicted quantifiable damage on Vermont’s economy and workforce.
According to data compiled by the Vermont Chamber of Commerce and the U.S. Department of Veterans Affairs (VA), Vermont’s veteran population has been shrinking by 2.7% annually, significantly outpacing the national decline of 1.6%. The state has consistently ranked near the bottom in the nation as a destination for military retirees. This exodus is particularly damaging among veterans aged 40 to 64—the very individuals poised for a second career.
The economic outflow is stark. Vermont’s 3,900 resident military retirees bring approximately $90 million in stable, federally-funded pension income into the state each year. For eight years, as states like New Hampshire and Maine with full exemptions lured veterans away, Vermont lost out on millions in potential economic stimulus, property taxes, and income taxes from second careers.
The human cost is equally palpable. Stories shared in public forums tell of sixth-generation Vermonters who felt “betrayed” and were forced to move to states like Tennessee, where their financial fortunes improved almost instantly.
“I can’t count how many veterans I know who have chosen to leave Vermont for states that treat them with the respect they deserve,” then-candidate for Lt. Governor John Rodgers stated during a debate.
A Pragmatic Breakthrough
With the direct path blocked, supporters of the exemption engineered a legislative masterstroke. They took an unrelated bill, S.51, which originally focused on a small tax credit for unpaid caregivers, and hollowed it out in the House Ways and Means Committee. They replaced it with a $13.5 million omnibus tax relief package that included the military pension exemption alongside a host of other progressive priorities.
The new S.51 bundled the veteran tax cut with an expansion of the state’s Child Tax Credit, a major boost to the Earned Income Tax Credit for low-income workers, and increased tax relief for seniors.
This strategic maneuver made the bill politically invincible. A vote against it was no longer a vote against a veteran-specific benefit; it was a vote against tax cuts for working families, low-income Vermonters, and seniors. Faced with this new political reality, the opposition collapsed. Senator Cummings leveraged her position one last time to ensure the unpaid caregiver credit was included, but the core military exemption passed.
The bill sailed through the House 142-2 and the Senate 28-0 before being signed into law.
The passage of S.51 was a victory for Vermont’s veterans and its economy. But the long, arduous path to its success serves as a stark case study. It reveals how a state that prides itself on progressive ideals was, for nearly a decade, held back by a few powerful lawmakers whose rigid adherence to a particular fiscal philosophy left Vermont at a profound competitive disadvantage, driving away the very people it needed most. The end result was a pragmatic realignment, forced by overwhelming economic evidence and a legislative coalition that finally became too broad to block.
Compass Vermont is a native publication reflecting Vermont’s original values. We use deep research rather than bias and speculation. You get the full story; you get to decide. Read Compass Vermont on Substack.
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Categories: News Analysis, Veterans
The inability of Vermont to recognize and fully appreciate veterans is astounding but consistent with its political agenda. Veterans in this state are a rare breed. The economic impact of not taxing their income should not have a detrimental impact while at the same time giving a more tangible recognition to their service . Extend this also to property tax relief as well.
There are the few who who step up and protect society. Now protect them.
By that logic, shouldn’t VT also exempt retired law enforcement, and emergency fire and medical professionals? As a retired military veteran, I do not mind paying VT State tax because I know we have one of the smallest tax bases and we all need to do our share. I do, however, wholly support continuing the exemption for disabled vets.
Chris, lowest compared to what? Vermont ranks third highest in overall tax burden among U.S. states !
They speak from both side of their mouth, they are not concerned about tax equity, if they were they would ban lottery sales, which are the governments way of duping and taxing the poor.
They could lower registration fees for cars, or going to happen.
They could care less about the poor, except they are making money off of keeping Vermonters poor and dependent, they are all for anything that does that, job security you know.
Meanwhile they find their NGOs with tax money.
Paul, are these two of the ten setting our Vermont agenda???
Typical democrats, who prioritize contrived victimhood above merit. Sorry ladies, but President Trump and his administration have brought back the concept of a merit-based society and a majority of decent people are fine with that. Who votes for these people?
You’re kidding, right? Trump and his administration (and kids) are about as far away from a meritocracy as you can get.
Chris, here again disagree with your TDS, business built and or expanded not run into the ground which is the American Dream
Cummings could go back to Massachusetts and Kornheiser could go back to Kentucky to try to ruin their state governments. No one would miss them.
Is this an attempt to oust specific legislators instead of cleaning house on all who bowed to the gatekeepers? Time to recognize that you are complicit. Legislators your word or your silence has made a huge impacts upon Vermonters. All Vermonters need to take note and make certain to vote for those who attempted to stand up.
This is just proof, once again, that those on that side do not work in the best interest of the people or the State of Vermont.
We need to remove the lawmakers because they have done nothing but harm and destroy our beautiful state of Vermont. They don’t care about the people and they don’t care about the state. They’ve done everything to increase cost raise taxes and make our lives absolutely miserable. Eliminate this whole group of people. No law should be made without the choice of the citizens of Vermont
These two are the perfect example of someone who came here because they didn’t like it there but now are trying make here like there.
Also-their agenda to :Take Over Vermont”
Not to mention they’re so much smarter than us poor, dumb woodchucks. If you don’t believe it, just ask them.
Don’t get me wrong, many who move here , myself included, would rather Vermont was as it was 50 years ago. I came in in ’78 fresh from the Army and I liked what Vermont was then and didn’t try to change it.
I am all in for the exemption for Veterans however the realistic issue is that Vermont is in financial trouble. Run by people that place their priorities in the wrong places, they continue to approve expenditures and programs that are detrimental to our growth and stability. This is why we supposedly have the highest homeless rate and people on welfare. Eventually all excess programs and the can kicking will have to end and we will be faced with the fact that the state has been so poorly managed that it is bankrupt.
Couple of hard looking people there…vote them out!
I am deeply bothered being a Vet that these two “things” could hold up any recognition of Veterans. To have this legislation sit on a table for 8 years shows the contempt by the complete legislature. To have no one in the Legislature for this time NOT to bypass these individuals and enact on the benefit for Veterans. If it wasn’t for Veterans, Vermont wouldn’t exist.
Quoting a paragraph from Mark Alexander of Patriot Post that should be recognized in VT.:
“For the record, there have been just five official declarations of war by the United States against 11 nations: The War of 1812 (United Kingdom), the Mexican-American War (Mexico), the Spanish-American War (Spain), World War I (Germany and Austria-Hungary), and World War II (Japan, Germany, Italy, Bulgaria, Hungary, and Romania). But since the American Revolution, there have been more than 125 military campaigns in defense of the United States and our critical national security interests.”
AND
“The most offensive of those mixed messages will be the saturation of consumers with “Memorial Day Sales,” disgracefully using the blood of our nation’s Patriots as fodder for profiteering. Fact is, as I wrote years ago, “Memorial Day Is NOT on Sale.” More than 1.3 million American Patriots have already paid the full price.”
What have these two logger heads and the VT politicians have learned—–NOTHING? In Townshend VT the ex Town Clerk has the same mentality–Vets be damned. She is an implant from Spfld MA area.
This state needs a bad awakening. Looking at the faces, Senator Ann Cummings is a dead head and Representative Emilie Kornheiser looks scared. And these two stopped any vet recognition.
A commenter Mike Hall stated “I am all in for the exemption for Veterans however the realistic issue is that Vermont is in financial trouble”. Here again, another putting VT’s economic values and “Need” over anything for vets. VT is so screwed up. It’s collecting money, never cutting waste and making government streamlined.
Finally:
“They gave up two lives — the one they were living and the one they would have lived. … They gave up their chance to be revered old men. They gave up everything for our country, for us.”
“Contemplate the mangled bodies of your countrymen, and then say, ‘What should be the reward of such sacrifices?’ … If ye love wealth better than liberty, the tranquility of servitude than the animating contest of freedom, go from us in peace. We ask not your counsels or arms. Crouch down and lick the hands, which feed you. May your chains sit lightly upon you, and may posterity forget that ye were our countrymen!” Samuel Adams (1777)
Vermont isn’t the state I want my bones in even tho my bones started here.
I returned home to Vermont when I retired from the Army in 1992. I moved to North Carolina in 2019 where I no longer pay state taxes on my military retired pay nor on my social security. The only thing I miss about Vermont is the scenery at the end of September, so I now come visit that week. I don’t miss snow, mud season or the current politics in Montpelier.
These two are just like Baruth and Lalonde who not only advance stupid legislation, but block sensible bills which seek to promote wise and righteous legislation, not the least of which is doing everything in our power to help our veterans who did everything in their power to keep us free.
But doesn’t the garbage generated by these kinds of Vermont legislators and committee chairmen come directly from the anti-Vermont, anti-American, anti-common sense, self-destructive playbook of Marxism and tone deafness?
The biggest mystery is how they keep getting voted in.
It’s no mystery how they get in. Vermont press is complete propaganda. NGO’s and Non-profits run/ruin our state. The VtGop is all in on not changing Montpelier.
Think my last comment is harsh? Governor Scott’s home court, Washington county didn’t even have a list of names of Republican voters in the county at a meeting I personally attended. That’s like opening a McDonalds without burgers and fries.
Oh, our top two leaders supported publicly, Build Back Better, United Nations Agenda 2030 over our constitution. Our fiscally conservative Governor is forecasting tax increases in the coming years with our new school governance….how about a 5% cut?
Yeah, all is not what they would like us to think.
DEI NEEDS TO DIE. These progressives that think we all want to keep paying higher and higher taxes to help make their self righteous agenda play out are in need of getting voted the hell out of office. So sick of the working class carrying the load for the moochers.
Ann Cummings and fiscal caution do not belong in the same sentence
Clueless Montpelier voters forever follow fellow lemmings off the cliff. Cummings is the absent lost Parent in her reckless and unconscionable funding of Planned Parenthood. She won’t advocate for the unborn or for Veterans. Supposedly a Roman Catholic…so what does she believe in? Ask her…
Thanks for that insight and info, Neil. I should have known better.
Especially with the passage of Article 22 in on 11/8/22, the reason that egregious and evil constitutional amendment passed by a 2/3 majority was because of propaganda and deception. This is the Left’s MO, and always has been. since the serpent in the Garden.
Just two more of the nut jobs 🤪
“Looney Turns”
That’s all Folks