VPR’s Kinzel reports on the Douglas administration’s desire to return to a system whereby the first 40% of capital gains remain untaxed – a change that would (naturally) yield dramatically disproportionate benefits to the wealthy and open up another $10 million budget hole that he (presumably) would then want to fill by firing more Vermonters and cutting off their social services. This is the Grover Norquist shrink-government-so-we-can-drown-it-in-the-bathtub philosophy in action. From the report:
Administration Secretary Neale Lunderville says the new system is having a negative impact on job growth:
(Lunderville) “These tax rates are forcing folks out of Vermont. They are creating disincentives for businesses to invest right now and to grow jobs at a time when we need them to do that most.”
This is the line routinely parroted by Lunderville, Douglas and others. Kinzel – as they all do – repeats it uncritically in his report.
Just once, wouldn’t it be nice to hear a reporter ask Lunderville (or whoever) for evidence backing up this assertion? Wouldn’t that be amazing? Just a simple follow up… “do you have evidence that this is occurring?” From what I’ve read there is none. GOPers always lean on the anecdotal, particularly this Op-Ed from poor victimized rich guy Glen Wright announcing he was “abandoning” Vermont and moving to Florida, absurdly describing it as the “only possible alternative.”
But even that’s bunk. He hasn’t abandoned anything, and is in fact the Finance Chair for Republican Phil Scott’s campaign for Lieutenant Governor. At best, then, he’s simply decided to use his own privilege to hide his wealth through the purchase of a second home and the pretense of residence elsewhere (which has been a tried and true practice of the wealthy GOP set). Puts “only possible alternative” in a different light, eh?
Why won’t Kinzel or the others challenge this assertion, which they’ve allowed to become conventional wisdom through its uncritical repetition?
Why I think I know someone who asked his accountant if he should move for economic reasons and he spoke about someone else who said they knew two dozen people that might move and those people may have known even others that were considering moving because Governor Douglas always said it was so.
no evidence about the connection to jobs
the supposed $10 million hole is only in year one; it has been $50 million in the past (2006) and will be again after the recession
VT had strong job growth in the `90s before there was a capital gains exclusion; if Lunderville is right, that’s impossible
in 2006, 51% of the benefits of the exclusion went to 340 tax filers; it is obscene to suggest we give them millions while programs are being cut and workers lose their jobs
counting the days until the election
BTW – I posted on this subject four days ago and asked the candidates to comment; to my knowledge, none have done so
Vermont Propaganda Radio will never dare to ask any actual questions of anyone on the far-right. In that they are just like their Big Brother, National Propaganda Radio.
The obscenely wealthy are winning their class war on middle and low income America. That the income tax is not 50% or better on the obscenely wealthy, and capital gains tax is not 50% or more is evidence of the class war. The wealthy do NOT pay their fair share of taxes.