Vermont’s Business Climate, Affordability, and Economic Growth
Thursday, September 17, 2026, Common Sense Radio, with Bill Sayre, weekdays, 11 o’clock till Noon.
John Reynolds, Vermont and New Hampshire Director of the National Federation of Independent Businesses (NFIB), joins Bill to continue their discussion about how best to create a business climate in which entrepreneurs and other businesses want to grow, hire, and invest. And in which families, particularly young families, want to live, and can afford to live and thrive. Affordability of health insurance, energy, housing, education, property taxes and other taxes, and land use regulation.
Potential Questions and Issues
Tax burdens have always been a major concern for small and independent businesses. How do our taxes compare with those of other States? Why is it important for tax rates in Vermont to be competitive with those in other States? Which taxes are greatest concern to businesses? Property Tax, for certain, where we are the highest in the Nation. How do high property taxes affect employees, actual and potential, and thereby make it more difficult for businesses to grow? As well as the direct effect of high property taxes on businesses, and their ability to compete and prosper. How do businesses react to high property taxes, in their decisions as to where to invest and grow? What about the overall effect of the new payroll tax to subsidize child care? How does growth in business sales, income, employee income, and grand list affect the capacity of government to perform their necessary functions, including helping the vulnerable, short term or long term? And the same principle is at work when businesses is not growing, or even in decline?
How do proposals to increase income taxes on high income earners affect the business climate, inasmuch as the vast majority of high income earners are there only temporarily, often only on the sale of their business? What message does it send to the economically successful? Punishing economic success? What is their fair share? 1 percent already pay about 20 percent of the income taxes, 10 percent 60 percent of the taxes (more than the lowest 90 percent), and 50 percent pay almost all of the income taxes (the lowest half pay almost none).
Similarly for the message for a special tax on second homes? What might be the unintended consequences of such a tax? A greater risk of severing ties with Vermont entrepreneurs. And, over the long term, lowering the tax contribution of economically s
The main use of property taxes is to pay for educating our children. Our cost of education is either first or second highest in the nation. Is there any way to reduce the burden of property taxes, with out reducing the cost of education? Do you have a recommendation as to how to reduce education costs? And to improve student test scores, which now are mid range among the States of the nation?
What other key factors affecting the willingness and ability of entrepreneurs, or other businesses, to want to start and grow in a particular State? The cost of health insurance and health care. What can we learn from the experience of other States, for example, New Hampshire.
How do Vermont’s health insuranoce premiums compare with New Hampshire’s and with national averages?
What are the key features of the Governor’s proposals to reform health insurance and health care? High deductible catastrophic insurance policies? Association plans? Age adjusted ratings?
Could we broaden flexible benefit accounts to include most all employee benefits, and to allow smaller businesses to participate? For example, something like a broadened Individual Retirement Account (IRA) and Health Savings Account (HSA)?
How is it that these reforms, which on the surface seem to segment the market, actually able to reduce premium costs. Focusing innovation and more competition and aligning incentives. In fact, enlarging the pool.
What should we know about the controversy over Reference Based Pricing?
How should we address the financial vulnerability of rural hospitals? Perhaps, specialization in combination with urgent care facilities? Not unlike the Fanny Allen Center>
What other helpful reforms either to health care or health insurance have been proposed in recent years?
Property taxes and the cost of education. A quarter of century ago, among the States, Vermont had about average cost per student, combined with one of the highest, among the States, student test scores. Today, our costs are among the highest of all the States, and our student test scores are about average. What reforms would best help improve our current situation?
Payroll taxes. More than $100 million per year, to subsidize child care services. How many additional child care openingis has this tax created? In the meantime, what has happened to the number of home days care slots? What role is over-regulation play in the loss of home child care openings? What do we know about whether the quality of care is better or worse? Is there a parallel with other social services — education and health care — when a government program tends to squeeze out competitors?
What is a monopsony? How is it different from a monopoly? But the effects on competition are the same.
Energy. What energy regulations and taxes affect the cost of living and the cost of doing business? Carbon Tax — history, reformulation, uneven effects on Vermont economy and society. Global Warming Solutions Act. What is the right of private action, and how does it call into question the idea purpose of elected public representatives? What are some of the unintended consequences possible with Court Ordered actions? What is the Climate Council and what are some of their recommendations that concern you? How do Carbon taxes, direct or indirect, affect rural businesses and communities disproportionately, compared with urban communities? Do the higher energy prices, resulting from the military action in the Mideast, give us a window into how such higher prices will affect our economy — particularly our rural economy — and how well energy taxes and regulations with a similar effect, would be received by the genera
What about nuclear energy — Are fluid be reactors and other innovations safer, smaller, and using more recycling than traditional nuclear reactors? Affect on affordability.
What should we consider in evaluating Data Centers? Effect on Grand List.
What are the connections of energy policies to the 30 by 30 and 50 by 50 program? Energy codes and renewable energy standards. Tier 1, 2, and 3. Highly sensitive environmental areas. Road Rule.
What are better ways — just as effective or more is, and less costly — to accomplish environmental goals. For example, reducing our Carbon Footprint. Working forests, and wood products.
What are we to make of declining average household size — for housing demand, and for demand for services, including health and education services? Other demographic factors for Vermont — second oldest median age, lowest fertility rate. Could it be that one factor in lower fertility is the cost of living for Vermont families, particularly young families?
What are the connections between affordability and economic growth? The metaphor of a piece of pie — what is more important, the size of the piece or the share of the total?
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