Vermont: Open for Business

We’ve become accustomed over the years to Governor Douglas loudly decrying the “anti-business” climate in Vermont; so much so, that many feared his persistent negativity might eventually become a self-fulfilling prophecy.

Thanks to the efforts of our friends at the Peace and Justice Center, we can finally point to evidence that the Governor is dead wrong on this characterization.

In a press release today,  P&JC reported some of the findings in the newest installment of their long running Vermont Job Gap Study:  

The first new phase since 2006, the report is the first part of a three part Phase 10 series “Toward a New Economy”, expanding upon our research on economic development in Vermont.  Titled, “Business Climate Revisited: Domestic Business Relocation and Jobs” Phase 10.1 provides critical information and data about what impacts job creation and business expansion in Vermont.

Contrary to Jim Douglas’ pessimistic characterization of the state’s business and jobs environment, the new Vermont Job Gap Study reveals that compared with the majority of other states, we are actually doing quite well in terms of job creation and job retention; and it appears that income tax has very little correlation to these factors.

Among the findings:  Vermont’s overall performance with regard to employment change has been the 17th best out of all 50 states in the nation and the best of all New England states.  With regard to job retention and creation, Vermont has performed better than 5 of the 9 states that have no income tax.  Lower performing states that have no income tax include Texas, New Hampshire, South Dakota, Tennessee and Washington.

The report also finds that Vermont’s high numbers of small business has positive effects of job expansion and contraction compared to states that rely on large business.  Vermont’s quality of life indicators and our investment in the public sector have helped to create favorable outcomes for communities that directly impact business relocation decisions.

Overall, the report found no evidence to support the assertion that Vermont is “anti-business.”  Vermont has outperformed many states with lower taxes or no income taxes at all. And, concerns about competitiveness are vastly overstated because there is very little domestic relocation.  This is not to say we should celebrate for Vermont has many challenges; only that policy should be data driven and not based on unsubstantiated assumptions.

So despite our good governor’s overtime efforts to convince the business community here and elsewhere that Vermont is a bad place to conduct their affairs,  something is working in our favor.  Could it be that limiting sprawl, protecting the environment, smaller student-to-teacher ratios and other factors that the governor values so little are actually incentives for businesses to locate and remain here?

 

About Sue Prent

Artist/Writer/Activist living in St. Albans, Vermont with my husband since 1983. I was born in Chicago; moved to Montreal in 1969; lived there and in Berlin, W. Germany until we finally settled in St. Albans.

5 thoughts on “Vermont: Open for Business

  1. I know a great many people who choose to live and pay taxes here in Vermont because they, including myself, appreciate all that living here has to offer. I travel a lot for business and I always return home more convinced that this is the best place in the USA to live. I believe the property tax unfairly burdens too many families. I believe the income tax, largely due to tax policy at the Federal level, unfairly benefits those with the highest incomes. I believe this unfairness of tax policy is supported by fear and lies, and it’s about time we stop putting up with it.  

  2. OMG, what will the Douglas Group now have to complan about.  Oh, I know, they will discredit the study, claim that the P&JC is some kind of a communist plot, and provide a series of anecdotal stories to document their “Vermont is a terrible place to live, work and play” theme.  Perhaps it is a miracle that Vermont is in such reasonable shape given the 8 to 10 year campaign by the Vermont Chamber of Commerce, the current administration and others of similar ilk to portray our state as a terrible place to do business.

  3. Is knowing that it will get Betsy Bishop’s panties all in a twist. If this information is verified, how will she ever be able to milk more money out of the lemmings?

  4. Very interesting study.  Thanks for bringing it to our attention with the links and all.

    Vermont can compete against the other states for good jobs AND a good quality of life if we properly emphasize what’s best about Vermont and not fall into the old traps and kill the goose . . . .

    We need to keep Vermont special and not destroy it in the name of cutting the budget or “fiscal responsibility”.

    Being really responsible means maintaining the things that keeps Vermont a place that good businesses want to come to.

    Yes, that means we need to raise the revenue needed to maintain essential services, plow the roads, protect important natural resources and the like.  

    As far as I know, the only fair way to fix the revenue shortfall problem is through the income tax.

    In the long run, that creates the best business environment.

    Norm

  5. Douglas probably knows this.  He’s just beating how Vermont is anti-business to keep us all paranoid and his rich friends happy.  

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