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Thread: Vermont and New Hampshire — A tale of two states

  1. #1

    Vermont and New Hampshire — A tale of two states

    Vermont and New Hampshire — A tale of two states
    By Jeb Bradley
    Posted Oct 27, 2017 at 8:11 AM
    http://www.fosters.com/news/20171027...-of-two-states

    The Caledonian Record, a St. Johnsbury, Vt., newspaper, recently published a very insightful editorial titled “Tale of Two States.”

    In this editorial, it compared the tax climate and cost of living in Vermont and New Hampshire.

    Here are some of the salient points of the Caledonian Record editorial:

    According to recent Census Bureau data New Hampshire’s median household income ranking is the nation’s highest and 30 percent greater than the national median;

    New Hampshire has the lowest poverty rate in the nation, while Vermont’s poverty rate increased by 10,000 people last year;

    New Hampshire has the 7th best business tax climate in the nation, while Vermont ranks 46th;

    Vermonters pay 12.1 percent of their income in state taxes, compared to New Hampshire’s 8.3 percent.

    The Caledonian Record draws these compelling conclusions:

    “The pro-growth, low tax approach leaves New Hampshire with a more impressive, enviable overall fiscal state. The Union Leader reported ‘the New Hampshire treasury is stronger than it’s been in years, with annual revenue for the fiscal year ending on June 30 running almost $100 million over budget.’ Vermont, in contrast, exists in a perpetual state of tax increases and budget deficits.

    “Vermont suffers the highest confluence of income taxes, property taxes, tax progressivity, estate taxes, minimum wage and cost of living in the nation.

    “The trends, and causes, of Vermont’s woes and New Hampshire’s victories are unmistakable. Opportunities fall in proportion to rising levels of taxation and costs of living. Unfortunately for Vermont, talented, innovative job creators often harbor a crazy notion that they should actually be allowed to keep some of their hard-earned wealth and look to friendly places like New Hampshire to set up shop.”

    In my view, the Caledonian Record perfectly describes what we call the “New Hampshire Advantage”.

    But it wasn’t always so. In 2010, New Hampshire faced large deficits, slow job growth, higher unemployment and tax increases, most notably the LLC tax. That tax was targeted at business owners and was so odious it was soon repealed.

    Voters took notice, and in 2010 sent a new Legislature to Concord: leaders willing to make difficult decisions to protect taxpayers, balance budgets and grow jobs.

    Spending had to be cut. Public pensions needed reform because costs for school, town, and county taxpayers were soaring. Tax hikes many wanted were killed.

    Our budget stabilized while the economy improved — helped by an improving national economy. However, despite neither a sales nor income tax, New Hampshire was not competitive with other states as our business taxes were the 48th highest in the nation.

    In 2015 and 2017, the Legislature worked to lower taxes on business owners. While some have derided this tax relief as “taking care of the entitled and wealthy elite” the facts speak otherwise — clearly!

    New Hampshire’s unemployment rate is 4th best in the nation.

    Our job growth is among the nation’s best.

    Our median household income is the nation’s best and New Hampshire residents living in poverty is the nation’s lowest.

    Tax revenue, especially from business taxes, has soared despite tax cuts. Strong revenue has allowed spending increases on the heroin crisis, mental health, families with disabled children, and the agency that protects abused and neglected children.

    And in 2019, the tax on electricity paid by every resident — will disappear!

    High business taxes are not the only issue facing our state. Workers’ compensation costs were sky high. Key reforms the Legislature adopted in 2015 are working and those costs have decreased nearly 25 percent.

    It’s not the time to rest on our laurels. We face high electricity and health care costs while employers have difficulties hiring qualified workers.

    It is important that we develop new sources of energy, both traditional and renewable, that are environmentally acceptable and drive down costs.
    Article continues at link
    http://www.fosters.com/news/20171027...-of-two-states
    Lifetime member of more than 1 national gun organization and the New Hampshire Liberty Alliance. Part of Young Americans for Liberty and Campaign for Liberty. Free State Project participant and multi-year Free Talk Live AMPlifier.



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  3. #2
    The original editorial.

    Editorial: Tale of Two States
    Sep 16, 2017
    http://www.caledonianrecord.com/opin...792c49fe1.html

    The United States Census Bureau released income data this week and a couple things jumped out at us.

    First, the highest median household income in the nation is being earned in New Hampshire. Granite State households are bringing in $76,260/year - 30-percent more than the national median of $59,039.

    Second, Vermont is the only state in the country that suffered a rise in our poverty rate. Data shows that over 71,000 Vermonters are now living below the poverty line ($12,228 for individuals & $24,399 for families)… 10,000 more than last year. By way of comparison, New Hampshire has the lowest poverty rate in the country, at 6.9 percent.

    We’re not surprised.

    Remember last year Vermont ranked as one of the worst states in the country to make a living… 45th overall, according to MoneyRates.com list of the best, and worst, states to make a living.

    The independent, non-partisan Tax Foundation ranked Vermont 46th and New Hampshire 7th, respectively, in its most recent index on states’ business tax climate.

    The American Legislative Exchange Council this year ranked Vermont 49th out of 50 in the economic competitiveness index in the annual “Rich State, Poor State” review. We have finished last or second-to-last every year since 2008.

    Vermont suffers the highest confluence of income taxes, property taxes, tax progressivity, estate taxes, minimum wage, and costs of living in the nation. We also rank tops in the country for age, welfare enrollment and government employment - all factors to blame for the mass exodus of jobs and people leaving the state.

    With our money, we grow… the public sector. It’s the largest employment sector in the Green Mountain State.

    That’s it.

    With their “Live Free or Die” ethos turbo-charging their robust economy, New Hampshire taxes neither sales nor income.

    Last year Art Woolf looked at Vermont taxes (personal and corporate income, sales and meals and rooms, gasoline and diesel fuel, property and a variety of others) and concluded the following - They’re high…. Really high.

    “I base my opinion not on the actual $3.4 billion in taxes,” Woolf explained, “but by comparing Vermont to other states and by measuring taxes as a share of what the U.S. Commerce Department calls “personal income” — the total amount of wages and salaries, interest and dividend income, as well as Social Security, pension and other sources of income earned by Vermonters.”

    According to Woolf’s research, we send 12.1 percent of our income to Montpelier. The national average is 10.4-percent. The difference between Vermont and the national average “may not seem like much,” he wrote, “but the difference translates into $490 million…. Another way of saying that is: if Vermont’s state and local governments taxed the same as the average state, taxpayers would save $490 million. That’s a lot.”

    The comparison to New Hampshire is way worse. In the Granite State, residents pay 8.3-percent of their income - fourth lowest in the country. “If Vermont taxed at New Hampshire’s level, our taxes would be one billion dollars less than they actually are,” Woolf explained.

    Finally, Woolf took a look at what we’re getting for our money. After all, “If the government services that Vermonters receive from those high taxes are of much higher quality than in other states, then high taxes may be a reasonable price to pay.”

    The problem?

    “Nearly half the taxes we pay are to fund Vermont’s schools,” Woolf reminds us. “If we had evidence of high quality government services, that evidence should show up in our students’ performance… I don’t find evidence that Vermont’s students, or its high school graduates, are significantly better prepared or perform better on any objective measure of performance, than similar students in other states.”

    It’s worth keeping in mind when you watch Burlington teachers striking this week - dissatisfied with their average $100K/year salary and benefit packages.

    The bottom line is that Vermonters are paying a billion dollars more than New Hampshire, per year, for schools and government services of the exact same quality. To us that’s pretty clear evidence of failed leadership.

    Meanwhile the pro-growth, low-tax approach leaves New Hampshire with a more more impressive, enviable overall fiscal state. We remember a couple of reports last summer. The Union Leader reported: “The New Hampshire treasury is stronger than it’s been in years, with annual revenue for the fiscal year ending on June 30 running almost $100 million over budget, according to unaudited figures.”
    The editorial continues
    http://www.caledonianrecord.com/opin...792c49fe1.html
    Lifetime member of more than 1 national gun organization and the New Hampshire Liberty Alliance. Part of Young Americans for Liberty and Campaign for Liberty. Free State Project participant and multi-year Free Talk Live AMPlifier.

  4. #3
    New Hampshire



    Vermont

    Quote Originally Posted by Ron Paul View Post
    The intellectual battle for liberty can appear to be a lonely one at times. However, the numbers are not as important as the principles that we hold. Leonard Read always taught that "it's not a numbers game, but an ideological game." That's why it's important to continue to provide a principled philosophy as to what the role of government ought to be, despite the numbers that stare us in the face.
    Quote Originally Posted by Origanalist View Post
    This intellectually stimulating conversation is the reason I keep coming here.

  5. #4
    'nuff said.
    Quote Originally Posted by Ron Paul View Post
    The intellectual battle for liberty can appear to be a lonely one at times. However, the numbers are not as important as the principles that we hold. Leonard Read always taught that "it's not a numbers game, but an ideological game." That's why it's important to continue to provide a principled philosophy as to what the role of government ought to be, despite the numbers that stare us in the face.
    Quote Originally Posted by Origanalist View Post
    This intellectually stimulating conversation is the reason I keep coming here.

  6. #5
    “Nearly half the taxes we pay are to fund Vermont’s schools,” Woolf reminds us. “If we had evidence of high quality government services, that evidence should show up in our students’ performance… I don’t find evidence that Vermont’s students, or its high school graduates, are significantly better prepared or perform better on any objective measure of performance, than similar students in other states.”
    Maine does the same thing, and it's all almost universally lost capital, as kids take that billion dollar education and haul ass as soon as they reach adulthood, because there are no jobs and no economic opportunity because of high taxes and regulation, thereby the people of Vermont subsidize the booming economies of other states.

  7. #6
    RE: Post #3

    How did Ben and Jerry's get a picture of me playing the flute?
    Last edited by Anti Federalist; 12-05-2017 at 12:23 PM.

  8. #7
    New Hampshire Lowers Taxes, Raises Revenue
    by Rob Roper
    http://ethanallen.org/new-hampshire-...aises-revenue/

    The New Hampshire Union Leader recently posted an editorial about their legislature’s 2015 decision to cut taxes on New Hampshire businesses. The tax cuts are still in the process of being phased in, but when fully implemented, the Business Profits Tax will be reduced by nearly 12 percent, and the Business Enterprise Tax by 33 percent.

    When these tax cuts passed, the article reports, “State House Democrats warned that shaving the state’s high tax rates slightly would ‘blow a hole in the budget.’”

    Nope:

    According to the Department of Administrative Services’s monthly revenue report, general and education fund revenues were $5.5 million ahead of the budget plan adopted earlier this year thanks to the state’s two main business taxes generating more revenue than anticipated. [emphasis added].

    For the year to date, revenues are $11 million, or 1.6 percent, ahead of schedule.

    This is important to mention for two reasons. First, there is the general lesson to be learned that when you reduce the barriers (such as cost) to doing business, you get more activity that generates more revenue. And, when you increase those costs you get less of both.

    The second is the fact the New Hampshire, which we are all well aware has no income or sales taxes, is taking steps to make their business climate even more competitive. And, it’s working.

    Let’s hope Vermont’s legislature considers both of these lessons as they debate things like $15 minimum wage, a new payroll tax to cover the cost of a government-run Paid Family Leave insurance program, and a Carbon Tax.
    – Rob Roper is president of the Ethan Allen Institute

    The Ethan Allen Institute is a independent, nonpartisan, nonprofit educational organization governed by an 8-member board of directors, and its programs are reviewed by an Advisory Council composed of Vermonters from many walks of life.
    The Institute is a 501(c)(3) educational organization, contributions to which are tax deductible for individuals and corporations. The Institute does not solicit or accept funds from governments, or engage in legislative lobbying or political campaigns.
    Lifetime member of more than 1 national gun organization and the New Hampshire Liberty Alliance. Part of Young Americans for Liberty and Campaign for Liberty. Free State Project participant and multi-year Free Talk Live AMPlifier.



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