( - 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. |
