(7/02/04) This article was written after a vote in the House on a resolution I offered thanking Vermonters for their support of state government. The resolution turned into an ideology debate but did pass with a vote mostly along party lines.

“We’re free” was a welcome greeting after the Civil War. Well, the day before Easter, most can say their free from additional tax liability and finally call their wages their own.

April 10 was Tax Freedom Day in Vermont. The Tax Foundation in D.C. calculates the last day in the year the average citizen works to pay his or her tax burden.

The average taxpayer in Vermont will work 100 days to pay their federal, state and local tax bills for the year. The national average is 101 days. Citizens in about half the states will work longer than Vermonters to pay their taxes. Vermonter’s pay an average of $8,200 per capita or 27.6% of their average income in taxes and their burden is 16th highest in the country.

Vermont ranks 12th highest for state and local tax burden per capita with citizens paying an average of $3,100 per capita or 10.2% of their average income each year in state and local taxes. New Hampshire’s state and local tax burden is the lowest in the country.

The Tax Freedom day hit an all time high four years ago, falling on May 2. However, this year’s “Freedom Day” is the earliest it’s been since Carl Yastrzemski led the Red Sox to the pennant in 1967. It seems that the federal tax cuts are working because four years ago, Vermont’s Tax Freedom Day was May 4.

Newsweek identified three families to show how tax cuts have reduced their tax obligations. One family made $32,400 in 2003, the second $73,411 and the third earned $194,000. The analysis showed the first family saved $1,000 or 45% from the cuts. The middle income family unit saved $2,800 of 44% and the high earner folks saved $6,899 or about 19%.

I introduced a resolution in the House thanking the Vermont Congressional Delegation’s role in reducing our tax burdens. It also praised Governor Douglas and the legislature for keeping spending in check and not raising taxes in these troubling times. Finally, the resolution recognizes and thanks Vermont’s public and private sector employers who contribute a portion of their income to the operation of the State of Vermont.

This was a simple resolution but it immediately became an ideological debate. Rather than recognizing that our economy is flourishing and state revenues increasing, the Democrats and Progressives attacked the resolution and federal fiscal policies as being irresponsible. Vermont’s revenues to date are up $58M over last year, our unemployment is near 3% and our consumer spending in 2003 showed a healthy, if not spectacular, growth. However, the “tax you more” advocates weren’t satisfied.

The opponent’s discussion echoed their comments about our house budget a few weeks earlier. They advocated more big government and eliminating the tax cut for the wealthiest Americans so that more can be spent on health care and education. Increasing spending in both areas would add to the heavy tax burden faced by individuals. Taxpayers already work a total of 28 days to pay just social security taxes.

Raising taxes can have a devastating impact on the current economic recovery. An improved economy will increase tax revenues to sustain our spending needs. Our economy is growing, the labor force is strengthening, the tax burden is lowering, and our Tax Freedom Day is earlier.

The Tax Freedom resolution I proposed thanking Vermonters for their tax contributions passed the House. Vermonters realize that paying taxes are the dues to live in a free society but they want limited government, not accelerating government, and lower taxes, not higher taxes.

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Thank you for your calls and notes. I can be reached at 658-3975 (home), 1-800-322-5616 or 228-2228 (State House) and via e-mail.

Rep. Frank Mazur
South Burlington