There is a quality of life problem in Vermont because some are finding it unaffordable. In part the problem is caused by the way Vermont taxes its citizens. In 1969 a 3 percent sales tax was approved and was raised in 1982 to 4 percent, raised again in 1991 to 5 percent and raised to the present rate of 6 percent in 2003. The 6 percent sales tax on most tangible stuff is an example in which the less fortunate among us pay at the same rate as the wealthiest.
Regressive taxes such as these are a burden to the poor and only a nuisance to the rich. The $6 of every $100 going to the state out of money that has already had an income tax assessed is a very big percentage out of a small paycheck or Social Security check. It does not stop there. The legislators in Montpelier have imposed more regressive taxes such as the energy efficiency fee on the electric bills and the rooms and meals taxes and is giving large incentives out of the income taxes for purchasing things only the well-off can afford.
State legislators are also clever enough to take a large portion of the regressive local option taxes that some towns adopt (and cause their citizens to pay a $7 sales tax out of every $100). Politicians don’t seem to realize every time a fee is raised or a costly regulation is adopted that the poor and many of those on fixed incomes have to figure out what to do without next.
Good intentions can cause or be causing a lot more harm than good (pun).
It is about time for the state and town governments to stick to managing their basic obligations in a fair equitable manner instead of finding more and more alternative ways to tax and spend the people’s money.
Wouldn’t it be better to scrap the sales tax altogether so the citizens could put the money in circulation or maybe even put it in savings? Is there any wonder why some Vermonters cannot get ahead? What’s next? A regressive Vermont carbon tax? Vermont needs tax reform that provides a quality of life for everyone, not more of the same.
Arthur Hendrickson is a Moretown, Vermont resident.
