The pragmatist

Debate continues in Vermont over how to address the projected budget deficit, as lawmakers and citizens protest cuts to social services while refusing to support tax increases. Vermont is not alone — states and local governments across the U.S. are making decisions about how to balance budgets. Vermont is facing a budget shortfall of $170 million, which pales in comparison to deficits in states like California. Governor Shumlin has proposed a plan to cut $44 million from state programs, while raising $30 million from a tax on health care providers.

House Speaker Shap Smith spoke last week, urging Vermont lawmakers to avoid raising taxes to save social services from cuts. He supports the governor’s plan to raise extra revenue by taxing health care providers, and exhorted legislators to refrain from raising income tax rates. Smith’s argument is that Vermont needs to retain its ability to raise revenue through income tax hikes to counterbalance federal cuts to programs like heating fuel assistance for low-income families.

Shumlin’s proposal to raise an additional $30 million in revenue can be accomplished by raising the current tax rate and adding dentists to the list of health care providers currently taxed. Unlike other states, all of the money Vermont raises in this manner is spent on health related programs. For every dollar that the state raises, the federal government provides matching funds of $1.60. Six million dollars of that money would come from taxing dentists, and Shumlin argues that dentists will see that money coming back to them in Medicaid reimbursements. Vermont dentists do not support the plan, saying that their patients would in effect be subsidizing the Medicaid program.

Shumlin has proposed large cuts to state education spending, along with a decreased funding to various health services. The proposed $11 million in cuts to mental health programs sparked strong protest. A large group of protesters braved snow banks in Montpelier last week to call for lawmakers to avoid cuts to mental health programs, which have already seen cuts in the past four years of state budget deficits.

I applaud Governor Shumlin’s proposal for the first decrease in state spending in the past decade. While I think it is fiscally responsible to rein in spending, Vermonters also need to step up and put their wallets where their mouths are. If we are unwilling to cut mental health programs, we must be willing to support those programs with tax dollars. Americans have demanded the maintenance of social programs and entitlements while refusing to support any tax increases, making it political suicide for any politician attempts to do so.

As Vermonters and Americans, we cannot continue to be fiscally irresponsible and demand continued high spending for entitlements if we refuse to pay higher taxes. Social service programs, like the state’s mental health program, are important enough to me that I will support them with my tax dollars. This past year was the first time that I have had to pay the state in five years of filing taxes, my dad can attest to my dismay at having to shell out my hard-earned money. I would pay what I did twice over again to support the programs I value. Vermonters must come together to support our mental health programs, health care for low-income Vermonters and public education. Small tax rate increases, when coupled with efforts to decrease spending, represent the only way for Vermonters to move forward.