The wealthiest people in Vermont's real estate market own places like ski chalets in Stowe and lakefront estates in Quechee. They pay their income taxes in New York and Massachusetts.
Not sure how you can describe education funding as "crumbling" when it is growing at 2 to 3 times the rate of inflation every year. The problem isn't that its crumbling it is that it is eating more and more revenue to feed it's never ending appetite for our money.
One other point to consider, the number of $500k filers is small to begin with as the article points out, but many within that small number are one-time filers -- folks who sell an asset such as a business -- not people making that much money every year.
Robert — two fair points. On education funding, you're right that "crumbling" was the wrong word. The problem isn't declining investment, it's unsustainable cost growth outpacing the revenue base — actually a more alarming structural problem than simple underfunding.
On the one-time filers, that's an excellent and underreported dimension that strengthens the story's central argument. The recurring taxable pool may be even smaller than the raw number suggests. Worth a deeper look.
I appreciate the informative facts that are laid out in this article. VT is increasingly at a cost of living crossroads. It's painful to watch the legislature yet again unable to agree on viable solutions to this challenging situation. Hopefully they will read this article and get on the path to at least understanding more of the underlying details. Taxing the rich has assorted limitations as you outline.
Much of this revenue problem is bigger than VT, starting with the high cost of healthcare in the US. Another is corporate America not paying their share of taxes and underpaying their employees who we subsidize. I'm not sure VT can tax it's way out of this cost of living mess.
PS. Quechee is primarily a 2nd home community as you outline. However the so called
Lake Pinneo is actually just a small man made pond, with no homes on this pond.
Tom — thank you for reading, for the kind words, and for becoming a paid subscriber. It means a lot and helps keep this work going.
You've put your finger on the core problem: Vermont's cost-of-living pressures are driven largely by national forces — healthcare costs, federal tax policy, wage suppression — that Montpelier can't fix on its own. The surtax debate is really a proxy for a much bigger conversation the state isn't fully equipped to have.
And thank you for the correction on Lake Pinneo. I've updated the article. Good to have a reader who actually knows the ground.
Not sure how you can describe education funding as "crumbling" when it is growing at 2 to 3 times the rate of inflation every year. The problem isn't that its crumbling it is that it is eating more and more revenue to feed it's never ending appetite for our money.
One other point to consider, the number of $500k filers is small to begin with as the article points out, but many within that small number are one-time filers -- folks who sell an asset such as a business -- not people making that much money every year.
Robert — two fair points. On education funding, you're right that "crumbling" was the wrong word. The problem isn't declining investment, it's unsustainable cost growth outpacing the revenue base — actually a more alarming structural problem than simple underfunding.
On the one-time filers, that's an excellent and underreported dimension that strengthens the story's central argument. The recurring taxable pool may be even smaller than the raw number suggests. Worth a deeper look.
I appreciate the informative facts that are laid out in this article. VT is increasingly at a cost of living crossroads. It's painful to watch the legislature yet again unable to agree on viable solutions to this challenging situation. Hopefully they will read this article and get on the path to at least understanding more of the underlying details. Taxing the rich has assorted limitations as you outline.
Much of this revenue problem is bigger than VT, starting with the high cost of healthcare in the US. Another is corporate America not paying their share of taxes and underpaying their employees who we subsidize. I'm not sure VT can tax it's way out of this cost of living mess.
PS. Quechee is primarily a 2nd home community as you outline. However the so called
Lake Pinneo is actually just a small man made pond, with no homes on this pond.
Best, Tom in Quechee
Tom — thank you for reading, for the kind words, and for becoming a paid subscriber. It means a lot and helps keep this work going.
You've put your finger on the core problem: Vermont's cost-of-living pressures are driven largely by national forces — healthcare costs, federal tax policy, wage suppression — that Montpelier can't fix on its own. The surtax debate is really a proxy for a much bigger conversation the state isn't fully equipped to have.
And thank you for the correction on Lake Pinneo. I've updated the article. Good to have a reader who actually knows the ground.
Tom Davis, Publisher
Thanks for the info. Looks like the only option is to further increase the property taxes on second homes.
Thanks for this information, it is very helpful to understand our current situation.