(05/15/07) Are you aware there is a $17,500 average income difference between Essex and Chittenden County residents and that five Vermont counties have a poverty rate of 10 percent or more? Not failure, but low aim, is our crime.

Some think economic development incentives are necessary but we’re competing with every state in the country to attract and retain business. It shouldn’t be the role of government to pick winners and losers in granting these incentives. Rather, government should focus on creating a pro-business tax and regulatory climate instead.

A study done by Pennsylvania Legislative Budget and Finance Committee a few years ago showed that states that spend the most on economic development lagged in population, employment and personal income growth. Vermont was identified as the 6th highest in economic development spending per capita but we’re below average in economic growth.

The Vermont’s Economic Progress Council (VEPC) was created to provide incentives to counter the anti-business climate caused by passage of the state wide property tax (Act 60). The funding source for VEPC incentives is taken from taxes and given back to preferential businesses as a credit against their taxes.

VEPC’s has authorized $110M tax incentives to date with a “theoretical” job creation of 8,483. Each job created is supposed to be high paying but data shows the state’s economic imbalanced since VEPC’s creation hasn’t changed.

Vermont policy makers should aim to create a climate that stimulates existing business growth and attract new business and start-ups. Economic vitality occurs when there’s a friendly environment, stable and affordable fiscal policy, decentralized government and a less onerous regulatory environment. Businesses will thrive in this secure environment and there won’t be any need to provide economic incentives to the "chosen few".

The difference between economic success and economic imbalance is a lack of will to do what’s right. States that act wisely will receive the prizes and flourish.
 

Frank Mazur
South Burlington

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Frank Mazur is a small business owner and was a member of the Vermont House from 1995-2004.