Blog

By James Haslam, Vermont Workers' Center

Check out www.workerscenter.org/may1

For the fifth year in a row over well over a thousand people from all over Vermont will participate in a huge May 1st Statehouse Rally. In 2009, we came to change what was politically possible in healthcare reform. In 2013, its become clear that what we really need to make possible is real democracy itself.

Please join us at 11:30am at the Statehouse to gather for march and rally to remind the legislature and governor that they don't work for the Chamber of Commerce or only represent wealthy people. The legislature has a real opportunity to stand up for our communities, and we have some ideas of what they should and SHOULD NOT do is they were to do that.

A Budget that Advances Dignity & Equity
The governor and (to date) the legislature failed to meet the purpose of the state budget, which the law now mandates must "address the needs of the people of Vermont in a way that advances human dignity and equity" (32 V.S.A. § 306a). Instead, they are set to undermine people's dignity and increase inequity by:

- impoverishing more people through capping the essential Reach-Up program

- making the tax code more regressive by reducing EITC and assessing new regressive taxes such as gasoline and soda tax which affect low-income people more than wealthy people

- increasing healthcare costs for people moved from VHAP and Catamount into the exchange, which effectively makes it harder for low-income people to access health care.

Meaningful Public Participation in our State Budget Process
The governor and legislature have also failed to meet the legal requirement for "a process for public participation in the development of budget goals, as well as general prioritization and evaluation of spending and revenue initiatives" (32 V.S.A. § 306a). Instead, they are ignoring the principles of participation, accountability and transparency and increasing the disconnect between people and government because:

- budget priorities come out of a vacuum rather than from engaging communities

- the budget process starts with the result of past tax policy decisions (the revenue estimate) rather than an assessment of real needs

- the failure to measure progress and outcomes makes it hard to see what effect specific spending and tax initiatives actually have on people's lives

A Healthcare System that Meets All Our Health Needs
Both governor and legislature have failed to meet the principles of universality and equity in Act 48, Vermont's universal health care law, by:

- failing to set out an equitable financing plan for Green Mountain Care

- erecting new barriers to accessing health care by increasing out-of-pocket costs for low-income people

- failing to stop leading health care providers from forming a for-profit conglomerate, OneCare, that will profit from selling access to care rather than providing health care as a public good, as required by Act 48

The Way Forward:
As the Put People First campaign made clear at the beginning of the 2013 session, we are dedicated to advancing public policies focused on meeting the fundamental needs of all people in Vermont, which is at the heart of what human rights mean in practice.

Policy decisions that put people first would look very different from the governor's and legislature's positions, because they would be based on principles, such as equity and universality, and developed in a transparent and accountable process with the participation of the people of Vermont.

Policies that put people first would:

- commit to eliminating poverty and ensuring a dignified standard of living for all

- assess people's needs, such as access to healthcare and jobs, and require that those needs be taken into account in the budget process

- inform and engage the public in developing budget goals

- collect taxes in a more equitable way, so that wealthy people no longer get away with paying proportionally less taxes than those with low and middle incomes

- ensure that we all get what we need and give what we can

Learn more at workerscenter.org

Dear Friends -

It may soon be even more difficult to compete in Vermont elections.  Under pressure from Democratic and Republican Party operatives, Legislators recently made changes to a formerly promising campaign finance bill that would more than double what statewide candidates can raise from a single source, and triple what political parties can raise.  Democrats and Republicans are attempting to use Legislators’ legitimate fear of what “Super PACs” might do in future elections to convince them they should be allowed to raise more money, that the solution to the flood of money in our elections is even more money.

As you and I know, we are not going to overcome the Super PACs and corporate interests by throwing more money into our elections.  Allowing the corporate-funded parties and their candidates to accept even more money from the likes of Monsanto, Coca-Cola, Pfizer, AT&T, and HP (all actual donors to the VDP last cycle), doesn’t fix the problem, it exacerbates it.  Please join me in calling on the Legislature to stand strong and pass a bill that will help rein in election spending, rather than increase it.  If you live in Vermont, find how to contact your State Legislators here, or you can leave a message for them by calling the Sergeant-At-Arms at 802-828-2228.

Update from Burlington: Over thirty-two years since Burlington first elected Bernie Sanders Mayor in 1981, the Progressive spirit is alive and flourishing in Vermont’s Queen City!  On Town Meeting Day last week, Progressive Jane Knodell was elected in Ward 2 and Progressive Vince Brennan was reelected in Ward 3, bringing Progressives’ total on the City Council to four.  Democrats were held to seven Councilors and, in a result reminiscent of November’s results, Republicans lost the only race they contested, leaving them with just one member on the Council.

Once again, Progressives continue to be on the rise in Vermont, even as the Vermont Republican Party continues its decline.  But these wins did not come easily last week in Burlington.  It takes a lot of resources to run the kind of strong, grassroots campaign needed to take on the Democratic machine and win.  And we can’t do it without your help!  Have you considered becoming a monthly donor to the Vermont Progressive Party?  Becoming a monthly donor is the best way to ensure our people-powered party has the resources to stand strong against the corporate-funded parties, but any contribution is very much appreciated.

Finally, I want to make sure you are aware of an upcoming event.  On Saturday, March 16th at 10:00 am at Montpelier High School, Senator Bernie Sanders (who has sure come a long way since he was Mayor of Burlington!) will be holding a Conference on Global Warming, featuring Environmental Activist Bill McKibben as the Keynote Speaker.  You can learn more about the event here.

Thank you for all you do,

Robert Millar
Executive Director

Legislative Update: Prohibition Has Failed
by Rep. Susan Davis

It's been nearly a century since Vermont first prohibited marijuana in 1915. It hasn't worked and it's time for a new approach.

Just like alcohol prohibition, marijuana prohibition does not eliminate the use of the product and simply steers all of the profits to the underground market. Given the fact that marijuana is far less harmful than alcohol, it is time we have it produced and sold in a legitimate, regulated market.

Regulating marijuana like alcohol and allowing the production of industrial hemp would create hundreds of new, legal jobs and generate business for a variety of other Vermont industries.

Read more >>

Legislative Update: Weekly Update
by Rep. Cindy Weed

Town meeting week signifies the traditional halfway mark of the legislative session in Montpelier. Typically, the first year of the biennium starts off slowly, as committees get used to new members and each other, and begin the work of taking testimony on and passing a variety of bills out of committee. Last week was the deadline to submit any and all bills. In total, approximately 500 bills will be introduced in the House and half that amount in the Senate. Naturally, with a part-time legislature, many will not get attention and literally die on the wall. Next year we will start all over again creating and introducing new bills.

Read more >>

In the Media: Vermont Democrats Want More Money in Politics
by Paul Heintz

On Wednesday, they settled on a fivefold increase for statewide candidates, allowing them to collect $10,000 checks from each donor. But after Sen. Anthony Pollina (P/D-Washington) protested, on Thursday, the committee scaled that back to $5000.

“There’s no reason why anybody should give $10,000 to a political campaign,” Pollina argued to his fellow committee members.

Read more >>

In the Media: Balance shifts in Burlington Council makeup
by Joel Banner Baird

Until the final vote count, Knodell said later, "I didn’t know if I was the underdog or not in this race. Both sides wanted it bad."

She credited a "classic, Progressive grassroots campaign" with her victory.

Read more >>

Progressives have pushed for a greater investment in childcare, higher education, student loan forgiveness, weatherization and clean energy for years, so it was encouraging to hear Governor Shumlin promote these initiatives in his state budget.

While we applaud his priorities, many of us across the state find his funding proposals detached from the economic reality of our neighbors. They are an insult to the working families of our state.

Take a look at this snapshot provided by Thom Kavet in his annual revenue summary prepared for JFO, which shows the change in income by income class for Vermonters over the past 10 years.

The median household income in Vermont is $53,000. That is, half of Vermont households are on the top half of this chart and half are on the bottom. Given that, I think most reasonable people would look at this and conclude that any new sources of revenue have to come from the top half.

Gov. Shumlin seems to think it’s those living in the bottom half who should pay up.

Today, we present nine revenue options that draw from those on the top half of this chart. We present a package totaling $50 million and hope it will stimulate discussion and inspire legislative leaders to find ways to advance Shumlin’s priorities without hurting those who can least afford it.

Progressive Revenue Menu

1.    Bank Franchise Tax (pay higher of BFT or corporate income)     $5.0 million
       currently 0.000096 of the average monthly deposit
       banks have expanded into services, etc

2.    Tax capital gains as ordinary income                                       $11.0 million
        currently exempt first $5,000

3.    Property Transfer Tax per 0.25% value > $500K                         $1.5 million
       adds 3rd tier for high-value properties

4.    Estate Tax – reduce exemption from $2.75 to $1 million             $1.9 million
       brings into line with neighboring states

5.    Income Tax Top Bracket Collapse                                           $20.0 million
       brings actual rates closer to marginal rates

6.    Vermont Alternative Minimum Tax                                          $1.0 million
       parallel’s federal structure

7.    Escheat (unclaimed bottle deposits)                                      $1-2 million
       reclaim the nickels

8.    Natural Resources Extraction Taxes
       Groundwater extraction 28 cents per gallon                          $4.5 million
       Earth Resources extraction 2 cents per cubic yard
       We are one of only 11 states without one

9.    Eliminate Sales Tax Exemptions
       Bottled Water                                                                    $1.0 million
       Clothing > $100                                                                  $2.2 million
       We don’t need bottled water
       People buying $120 sweater can afford $7.20

Make no mistake: Governor Shumlin is proposing a broad-based tax increase on low-income working people.  Substantial cuts to the Earned Income Tax Credit are a tax increase by anyone’s measure. And a tax increase on the most vulnerable Vermonters, those who are working and raising children.

One example: A single mother of two small children who is self-employed and earns $27,000 a year.  She pays no income tax, but because she is self-employed, she pays $3,200 toward Social Security and Medicare (known as Self-Employment Tax on the Federal income tax return (1040), where it is collected from those who don't receive a W-2 from someone else).  Her Federal Earned Income Tax Credit is $3,200, which effectively pays that Self-Employment Tax.  Her Vermont Earned Income Tax credit is about $1,000.  That Vermont Earned Income Tax Credit effectively boosts her income for the year by $1,000 as an incentive because she is earning income and supporting her two children.

Obviously that $1000 makes a big difference in a household of 3 people, the difference between living on $27,000 or $28,000.  It is 3.5% of their income, so taking it away is essentially a 3.5% tax, which is really a 100% increase in their tax rate as the Vermont income tax rate on people of her filing status (head of household) making less than $46,000 is 3.5 percent.

Even Republican Lt. Governor Phil Scott said on the Mark Johnson show that he thought taking away people's Earned Income Credit was a bad idea because "this is money people use to buy groceries".

Governor Shumlin has said that he doesn’t want to raise taxes on the wealthy for fear they will leave the state.  I guess he figures low-income working Vermonters won’t leave, or does not care if they do.  Shumlin claims he is trying to incentivize people on welfare to get jobs, yet proposing now to penalize those who have jobs.  He claims he is trying to persuade young people to stay here and raise a family.  Someone should tell him that many young people are low-income earners when they first start a family.

This is the most regressive tax proposal to come out of any Governor’s office, Republican or Democrat, in recent memory.