Dear Editor,
It’s time to change our state government’s archaic tax system and truly make it fair for every single Vermonter. Vermont’s current tax system employed by the Legislature needs a true and absolute overhaul!
First, it is exclusive.
Second, they want to tax everything, and in some cases they are. We need changes under both the current tax systems and the thinking under the Golden Dome. They are taxing on income, payroll, property, consumer goods, vehicle use, commercial vehicles, gas, diesel fuels, airplane fuels, recreational vehicles and fuels, all forms of entertainment, and our fun, hotels — you get it, everything under the sky. They are trying to tax it all. All in the name of BIG government control. Soon, they will try to tax our thinking process.
Third, their system is not fair to Vermonters, especially young Vermonters and seniors.
Let me concede right here, that I despise taxes, especially the over-taxation and the government involvement or control over all programs that could be better run and more efficiently managed in the private sector. Like S.56, which aims to take control of childcare in our beautiful state. And the Home Heating Act and school funding. School spending is out of control and taxing property is unfair and unjust.
We appreciate the need for some taxation in our government to pay for “reasonable” governmental spending, including helping the vulnerable in our communities.
Under my plan, every business transaction taking place in Vermont, whether as an individual consumer or a business or a non-profit doing business, will pay the same fair tax at point-of-sale at the marketplace, period. And every tax in the VSA (Vermont Statutes Annotated) will be repealed, eliminated, and gone. This tax will be spread around all people to cover every dollar raised to fund state government. We call it “Make Vermont Affordable.”
The plan is simple based on a complete consumption tax. A consumption tax is a point-of-sale tax or added value on the purchased consumer goods, products or services that individuals purchase. In our estimate gross sales across Vermont exceed $100 billion dollars annually. These sales incorporate every and all business transactions in the Green Mountain state borders, with no exemptions, no credits, no adjustments. Just a straight tax that everyone’s consumption on every single purchase in our borders are taxed at this rate, including all on-line purchases inside a Vermont-base internet operation’s platform. We know that the gross sales cited above are real, and at a reasonable rate, between 8% to 12%, we will realize the same budgetary revenues needed to fund state government’s current budget. However, we believe that government spending will decrease under this new taxation plan, and that government will become more efficient and effective for Vermonters.
I reached out to the Vermont Dept. of Taxes, the Joint Fiscal Office, the Legislative Council and others for real total gross sales figures here in Vermont. No one would help with the request. They said that they only keep figures on current sales type tax compilations. I disagree. That said, any Legislator can get those figures because a couple of these offices work for the Legislature. It’s pretty simple, businesses must file quarterly or monthly business transaction returns, some are only required to file sales figures annually. When every business organization, nonprofits, and individual files as sole proprietorship (Schedule C) they file their gross sales data, hence we have the total and complete information of gross sales figures in our state. They just need to dig for it a little deeper.
Every business, big or small files its, corporation’s taxes on a 1120 or 1120S; partnerships, 965-S; nonprofits 900-S; and self-employed, a sole proprietors filing their 1040 Schedule C must file taxes with the state tax dept. In its tax filing there is a section for Cost of Goods Sold on every return filed with the IRS and the Vermont Dept. of Taxes. In there tax return their gross sales figures for the year, are included, equating to the $100 billion that I cited above. And this total gross sales amount, taxed at a reasonable rate of say 10% (less or higher) will completely fund state government.
This consumption tax is a new found source. Currently millions of dollars in gross sales goes un-taxed annually. There are millions of illegal money that is not taxable for obvious reasons, but with this consumption tax all that money will be captured when these people go to the marketplace to purchase a pack of cigarettes or purchase a new 72” huge screen TVs or use a lawyer or accountant. Only these point of sales transactions will be taxed. Remember, no Vermonters will be paying all the other taxes imposed under current Vermont law; no property taxes, no income or payroll, no death tax, nothing. Some taxes will be traded for this new current consumption tax.
This new system will save state government millions of dollars in different departments, with salaries and various antiquated and useless tax system platforms that just don’t work and are expensive to maintain.
Now we are working with some legislators to introduce this into the legislative process. This is a fair and just taxing source, it’s bold, but deserves a solid discussion. Stay tuned for additional information.
Gregory M. Thayer, MBA, Rutland
