We can’t do a lot about the rain that has inundated us this summer except to decide to enjoy the lushness that it brings. And, to the chagrin of many, we can’t do away with taxes. They exist second in certainty only to death. But, we can do something about the system, process and amount that the representatives we send to Montpelier extract from us to fund state government.
For the record, I am neither a ‘tax and spend’ nor a ‘my money is my own’ kind of guy. I believe that government exists to provide the core services envisioned by those who created our state and to provide services to those whose predicament could not be contemplated in the late 1700’s. Somebody has to pay for those services. Capitalism has provided the best avenue to create the wealth to allow that to happen. That said, I must confess that I am disturbed by the rampant populism that I see riding the high wave of political rhetoric and action these days. It will always be that the wealthier among us will have to pay more than those who are less able but the delicate balancing act seems to have been knocked a-kilter. No where is it more evident than in how we pay for education. Those who are below a certain income threshold pay a fixed percentage of their income. Those above that threshold are left to experience Mr. Toad’s Wild Ride as others vote to spend their money. Fundamentally, that is wrong. Those who choose to locate and invest in our state need predictability and transparency. The current system provides neither. I have often said that we are a small state that likes to ‘play big’. While that is great when we compete in areas of intellectual property, technology, higher education and the like, it is not great when our marginal tax rates rank in the top 5 in the country, our population is in the bottom 5 and our out-migration of youth is among the country’s highest.
Vermont needs a reality check and overhaul not just of our tax system but also of the expectations that we have for government subsidized programs. State government, non-profits, education “systems” and certain municipal services have grown with little rhyme or reason over the past quarter century. The populist view that if someone wants a particular program or service than it must be provided is nonsense just as it is nonsense to think that “someone else” will pay the price. Whether it is health care, education or permit reviews, everybody should pay enough of their income to drive home the fact that there are no free lunches.
This summer there are three executive-legislative committees at work in Montpelier: education; tax; and government efficiency. Perhaps they should consider working in conjunction since no matter which one you poke, the other feels the pain.