Revenue Hearing March 17

[Carolyn Branagan]

The Vermont House Committee on Ways and Means is holding a public hearing on Tuesday, March 17th from 2:45-4:30 pm and from 6:30-8 pm in Room 11 of the Vermont State House. The purpose of the public hearing is to receive testimony from Vermonters concerning the revenue situation facing the state of Vermont.

Currently our state's projected budget exceeds projected revenue and we are looking at a deficit in the FY2010 budget and in the 2011 budget. What's the solution? Should the state make further reductions, increase efficiencies, look for new revenues or do something else? Are added revenues appropriate? If so, what might they be?

The Committee on Ways & Means is responsible for the revenues of the state, not spending decisions made in the budget.  The Vermont Constitution Article 9 partially reads “…previous to any law being made to raise a tax, the purpose for which it is to be raised ought to appear evident to the Legislature to be of more service to community than the money would be if not collected.”

I want to hear from you.  Please try to attend this public hearing. If you are unable to attend but would like to comment on our revenue situation, contact me at cbranagan@leg.state.vt.us


Rep. Carolyn Branagan
Franklin-1, Fairfax/Georgia
Vermont House of Representatives

[special ED]

why doesnt the state actually try to collect the taxes they are due instead of createing new ones for the honest people?

[Chris Santee]

We should adjust the lottery games to make more winners of smaller prizes.
Instead of 1 $30M winner, let's have 30 $1M winners.
This would generate more interest, thus more revenue, and not from the poor.

[special ED]

I`LL say it again ...we have over 50million in unpaid taxes and hear goes the ways and means it commity trying to raise another source of revenue[ meaning taxes ]and there is shumlin right at the front as the band leader ,must be the southern part of the state is not haveing money problems,we should have let them go to new hamshire like they wanted to then they can have shumlin

[Carolyn Branagan]

SpecialEd was asking about the state’s efforts to collect taxes from delinquent taxpayers. Here’s some info:

Efforts in collecting delinquencies have improved lately. Here’s a summary of amounts collected in the last several years: in FY2004
$38,130,050 was collected, in FY2005 $43,153,903, in FY2006 $49,875,480, in FY2007 $51,523,779 and in FY2008 $52,815,279 was collected. Tax Department officials report approximately $59,000,000 in outstanding delinquent tax that is collectable.

The Commissioner reported to the Ways and Means Committee that receivables grow at 17% per year, and collections grow at an annual rate of 8 1/2%. Clearly they need help.

The Ways and Means Committee has developed a plan to help in collection efforts and it appears in the MiscellaneousTax Bill. The bill doesn't have a number yet. First there is a Tax Amnesty proposal that would allow a 6 week time next summer in which outstanding tax debt could be paid without penalty or fine. This somewhat controversial proposal is expected to bring in about $2 million. Then there is a proposal for new positions in collections at theTax Department. The proposal calls for nine people to be hired in 2010, six in the next year and 5 in 2012.These new positions are estimated to collect an additional $6,585,624 after  the personnel costs are  taken out.

The easiest thing would be for Vermonters who owe back taxes to simply come forward and pay them.

Let me know if you have further questions.

From,  Rep.Carolyn Branagan

[Carolyn Branagan]

The Hearing was held on Tuesday. I was very, very surprised at the testimony. In the afternoon, we heard from about 65 people,who nearly all told the Committee not to cut spending. I don't remember anyone testifying in the afternoon session who  said that we should not raise taxes. In the evening, out of the 60 or so people who testified, there were about 10 businessmen who presented very good testimony on how raising taxes would hurt their businesses and the Vermont economy. The rest wanted continuation of governmental services. Some said literally 'please raise my taxes to continue these services'. In addition to the in person testimony, the Committee received about 80 emails, maybe more. Nearly all the emails were against raising taxes.

On Friday afternoon, a plan for raising income taxes was presented in Committee.

For the record, I have never supported raising taxes. A lot of the time, I feel I am alone in this position at the statehouse, but I know my constituents do not want tax increases and cannot afford them. So I will continue to work for an answer that does not include raising income taxes. As I've written before, the only tax that may be needed is to pay for the bond for road improvement. But I'm still searching for a way around that.

I'll be in the sugarhouse most of the day.


Rep.  Carolyn Branagan