Common Sense Radio: Vermont Taxes, Business Climate and Proposal 3 with John Reynolds of NFIB

Thursday, October 22, 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 one in which middle class families, particularly young families, want to build a life, and can afford to do so.

Vermont iand her people have one of the highest tax burdens of any State in the Union. Some have said that we should raise tax rares even higher. Does this seem like a good idea to you? Has it generally been the case that when advocates propose a new tax, they say it will be small — small in size, or for a small period of time, and if not small in size or time, then small in the number of voters to which it would apply. This was the case when the Vermont income tax was created in the mid 1930s, when the Rooms ad Meals tax was passed in 1959, when the sales tax was created in 1969. And it was the case when the new payroll tax was created three or four years ago. And is the case today, among those proposing to raise the tax on high income earners, or on second homes.

Do you think it is likely that it is any more likely that a new tax on high income earners or second homes, will remain limited, than it remained limited on income, sales, rooms and meals, or payroll?

What will be the indirect effects of creating a new tax on second homes? How will a second home be defined? What is the intended purpose of such a tax? Is there an element of the politics of envy? What might be the unintended consequences of such a tax? On the travel and tourism industry, in particular. And on retail sales and meals taxes in tourist areas? And, perhaps most importantly, on our State’s attitude toward high income earners.

Sometimes advocates say high income earners should pay their share. What do the advocates believe is the fair share that high income earners should pay? What can we learn by comparisons with other States of the Union? As well as the history of other Vermont taxes, expanding in size and scope?

What should we know about mobility of individual taxpayers as to the income they earn; and as to which State in which they live and work? Could a higher tax on high income earners, particularly much higher than in other States of the Nation, be seen as punishing the economically successful? And also punishing entrepreneurs — famers and small businesses — who are selling the product of their life’s work, so that they can retire?

What is the difference between getting a tax decrease and not getting a tax increase?

With a proportionate cut in federal income taxes, won’t it always be the case that the dollar decrease will be greater for high income earners?

What proportion of income taxes are paid by the highest 1 percent (25 percent), the highest 10 percent, more than the lowest 90 cercent, and the highest 50 percent, almost all of the income tax.

What Constitutional Amendment, known as Proposal 3, is on the ballot in November? What is the language in this proposed amendment? What might be the difference between the surface meaning of this language, and the unstated, perhaps unintended consequences, of adding this language to the Constitution? What is the concept of right to work? Does right to work prohibit the creation of a union at a particular employer? What did the Supreme Court decide as to compelled speech and union dues? What is a closed shop, vs. an open shop?

Do you think most people are aware of the implications of passing Proposal 3 into the Constitution?

What can we learn from the experience of other States? Do a substantial number of States have right-to-work legislation? In general, do right-to-work States have faster economic growth than those who don’t? What should we know about unionization in various sectors of the economy? 75 years ago, about 30 percent of the economy. Now less than 10 percent. The correlation of large scale manufacturing, that is, mass production, in America — manufacturing employment, as a percent of total employment, follows about the same change over the 75 years. Also, the rise in public employment — government employees, particularly teachers and State employees. Also, utilities. What can we observe — industries and markets in which the employer has a monopoly, or close to a monopoly over the product or service they provide, are more likely to be unionized? Why? Compare to other industries and markets, in which there is more competition and choice. More independent contractors. The story of the automobile industry, before and after the 1970s.

What should we know about Vermont demographic trends? Population declines, especially among the working age population, and young families? Lowest fertility rate in the nation. Lowest number of births since before the Civil War. Second highest median age in the nation. Declines in school enrollment, especially in rural areas. Labor Force is down 10,000 from its peak, more than year ago. Similarly for employment. What does it mean for State revenue when employment is down? Does this help illustrate that the best way to increase tax revenue is to grow the economy?

Do we have a revenue problem, in the State Budget, or a spending problem? Why is it important for Government, like families, and businesses, to live within its means?

What are the implications of our demographic trends for public policy? Tax policy. Cost of education, health insurance, and energy. How does the cost of living affect the ability of Vermont businesses to grow, invest, and create tax base — grand list, income, and sales?

What Constitutional Amendments are on the ballot this coming election day? Proposition 3. What is the language in this proposed amendment? What might be the difference between the surface meaning of this language, and the unstated, perhaps unintended consequences, of adding this language to the Constitution? What is the concept of right to work? Does right to work prohibit the creation of a union at a particular employer? What did the Supreme Court decide as to compelled speech and union dues? What is a closed shop, vs. an open shop?

Do you think most people are aware of the implications of passing Proposal 3 into the Constitution?

What can we learn from the experience of other States? Do a substantial number of States have right-to-work legislation? In general, do right-to-work States have faster economic growth than those who don’t? What should we know about unionization in various sectors of the economy? 75 years ago, about 30 percent of the economy. Now less than 10 percent. The correlation of large scale manufacturing, that is, mass production, in America — manufacturing employment, as a percent of total employment, follows about the same change over the 75 years. Also, the rise in public employment — government employees, particularly teachers and State employees. Also, utilities. What can we observe — industries and markets in which the employer has a monopoly, or close to a monopoly over the product or service they provide, are more likely to be unionized? Why? Compared with other industries and markets, in which there is more competition and choice. More independent contractors. The story of the automobile industry, before and after the 1970s.

What should we know about Vermont demographic trends? Population declines, especially among the working age population, and young families? Lowest fertility rate in the nation. Lowest number of births since before the Civil War. Second highest median age in the nation. Declines in school enrollment, especially in rural areas. Labor Force is down 10,000 from a year ago.

What are the implications of these demographic trends for public policy? Tax policy. Cost of education, health insurance, and energy. How does the cost of living affect the ability of Vermont businesses to grow, invest, and create tax base — grand list, income, and sales?

What will be the effects of creating a new tax on second homes? How will a second home be defined? What is the intended purpose of such a tax? Is there an element of the politics of envy? What might be the unintended consequences of such a tax? On the travel and tourism industry, in particular. And on retail sales and meals taxes in tourist areas? And, perhaps most importantly, on attitude toward high income earners.

On The Notch Radio, WMTK, 106.3 FM, and on the affiliated radio stations of Green Mountain Broadcasters, in Orleans County, Wike 1490 AM or 103.1 FM, in Caledonia County, WSTJ 1340 AM or 104.1 FM, or directly to your phone or computer anywhere in Vermont, or anywhere in the world, with internet access, via live streaming from the Notch’s web site. www.notchfm.com