Monday, June 21, 2010

A Progressive Tax Structure for Vermont

Two years ago the legislature decided that what was needed was a comprehensive study of the revenues package that funds Vermont state government. Three people were appointed and staff was hired to have them take the necessary time to research and study what Vermont currently has as a revenue structure, what is working, what the impacts of various changes are and what a comprehensive revenue package for our state should look like. We very intentionally set the date for the report for after the 2010 election. What we all know is that the next governor and legislature can look forward to a comprehensive piece of work that can lay the foundation for a new structure.

With that said here are the general principles of a Bartlett administration. I believe in a progressive system of taxes and revenues; when you earn more, you have the ability to pay more. Individuals, groups or companies that use certain state services should help defray the costs of the services they consume; you need a permit to sell ice cream, you should pay for the cost of delivering that permit. For a number of years I have been interested in the idea of capping the amount of income tax individuals pay after age 65 and that should be a progressive system. As we move towards health care reform I believe that everyone has to be in and everyone has to pay. A Bartlett administration would want tax policy that supports the growth of our small businesses and encourages the growth of good paying jobs throughout Vermont.

I have been a supporter of Challenges for Change and moving all of state government to an outcome based, measurable system of government. Once we all understand clearly what we are getting for our dollars, then we can have a conversation about how much we need to be spending; where are we spending enough, where do we want to spend less, where do we may want to spend more. I believe that once this is done and Vermonters see what their tax dollars are buying there will be a very different conversation regarding the revenues of our state. With an outcomes based system and the information from the revenue study group, the next administration and legislature can redesign our revenue system and have it truly reflect the values of Vermonters.

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