( – promoted by odum)
While speaking on the radio recently (True North, WDEV), Tom Salmon offered his views on tax policy. He said he would like Vermont to be a “no income tax state.” Apparently he views this as a necessary remedy because “we’re a very sketchy state for businesses [and] New Hampshire continues to eat our lunch.”
The idea that Vermont’s economy is anti-business and suffers in comparison to other states is a common refrain but is not supported by the evidence. For example, for three major economic measures — rate of job creation, unemployment, and per capita GDP, Vermont has exceeded the national average over the last ten years and is virtually identical to (or better than) New Hampshire.
Like the rest of the country, Vermont still has problems. But to suggest that Vermont is an economic basket case is just plain wrong. And it is hyperbole (if not demagoguery) to suggest that New Hampshire is “eating our lunch.”
Finally, not only is Mr. Salmon’s desire for Vermont to be a no-income tax state the wrong remedy, it creates a $600 million dollar hole in the state budget. Mr. Salmon hasn’t said how he would fill that hole. Typically, having no income tax means the state must rely more heavily on regressive property taxes and fees (like New Hampshire). The result is a skewed distribution of the tax burden that benefits the wealthy.
Mr. Salmon is certainly entitled to his opinion, but as the State Auditor, one would hope that he forms his opinions after careful analysis of the facts. To my knowledge, the Auditor’s Office has not produced any reports that provide the evidence necessary to support Mr. Salmon’s conclusions. In this case, it appears that Mr. Salmon is satisfied with unexamined assumptions and sound bites. These are not qualities we look for in a State Auditor.
True North Radio no longer exists. It is called Common Sense Radio.
otherwise, a very good post.
Once again, Tom Salmon demonstrates that he has little interest in actually doing the job of Auditor of Accounts.
If he wants to bring about the policy of no income tax for Vermonters, maybe he should run for an office that deals with that kind of policy issue, like governor.
From Fair Game
Over the past six years, the Vermont Department of Motor Vehicles has shelled out $18 million for a new computer system that today is barely usable. The launch of the new VT Driver & Registration Information & Verification Enterprise System – VT DRIVES – is three years overdue and millions over budget.
Get off the radio and find this kind of stuff Tommy. Or let someone have that job who gives a crap.
This might turn into a full-fledged diary one of these days, but it’s pertinent here:
Ever since the early days of Ronald Reagan, we’ve been told that lower taxes would actually increase government revenue because the power of the free markets would be unleashed and the economy would expand.
Every time it’s been tried, deficits have gone up. Sometimes taxes have been raised, but usually public-sector spending has been cut.
Now we’re being told that taxes must be even lower. Well, what happened to the unleashed power of the marketplace? Why aren’t public purses bulging with tax revenues from our booming economy? Why should we believe that the next tax cuts will do any better?
Okay, aside from all that, one specific point on New Hampshire and Vermont. The primary difference between the two, in terms of prosperity, isn’t the tax structure — it’s New Hampshire’s proximity to Massachusetts. Northern New Hampshire isn’t any better off than Vermont, in spite of NH’s lack of broad-based state taxes.
And yes, Tom Salmon should shut up and do his job. Or quit and run for another. It’s clearly what he’s itching to do.
he’s got a piece over at the digger now.
choice quote:
http://vtdigger.org/2012/01/31…
thanks tom, for being such a good auditor that you have time to carry entergy’s water.
are they looking to hire?