3-25-15 – State Government is Raising and Spending More Money Than Ever

Posted by Rob Roper

The House will vote on a budget bill this week amidst much self-congratulations for “making the tough choices.” Throughout the process, there was tearing of garments and gnashing of teeth over the need to deal with a $113 million dollar budget gap while revenues failed consistently to meet projections.

We cannot let it be lost in the headlines and spin that if this budget passes, Vermont will be spending more money than ever, while taking more money from the taxpayers than ever – even before piling on the $35 million in new taxes that are included in this bill.

According to the Joint Fiscal Office analysis of H.490, total state funds for the budget will increase by 3.7%, general funds will increase by 4.8%, and total funds, including Vermont’s substantial federal subsidies, will increase by 1.3% from $5,472,000,000 to $5,544,000,000.

Meanwhile, athough overly-optimistic revenue projections are falling short, last year’s tax increases are ensuring that Vermonters are paying more than ever into the treasury. According to the latest report, income tax revenue is up almost 12% over last year to date. Corporate tax revenue is up almost 50% over last year. Sales and Use is up over 3%…. Overall, total revenues are up 3.87% over last year.

So, why in the world do we need to pony up $35 million in new taxes? Why can’t these people simply live within their – our – means?

{ 1 comment… read it below or add one }

jim bulmer March 28, 2015 at 12:34 pm

Rob, Will it ever end? With revenues up, why not use those funds to live within our means? I’ve pleaded with my senator numerous times to support fiscal restraint and have been ignored. My guess is they choose to acknowledge only those who agree with them. Fortunately our new guy, Job Tate, is in my corner. Jim Bulmer, Bridgewater.

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