FreedomWorks calls for Stop Over Spending (SOS) Legislation

Download the Petition (.pdf)

 

Higher Taxes Aren’t the Answer.

 

Vermont’s combined state and local tax burden is the 5th highest in the nation. The U.S. Census Bureau listed Vermonters as the most heavily taxed people, per capita, in the entire country. Despite this fact, Montpelier is still spending our money faster than we can shovel it into the treasury. It has to stop.

 

Although the average Vermonter’s income is rising at 3.7% a year, Montpelier’s “income” from collecting taxes is rising at an average annual rate of 6.7%. Net property taxes have increased by an average of 8.1%. In other words, Montpelier is draining the pool of taxable money faster that it can re-fill itself.

 

These trends are irresponsible and unsustainable. If government's public spending is not adjusted back into line with private income growth and taxpayers’ ability to pay, Montpelier will bankrupt our citizens one by one, and, eventually, our State in its entirety.

 

Vermont Needs Stop Over Spending (S.O.S) Legislation NOW.

 

FreedomWorks-Vermont, in partnership with Vermonters for Tax Reform and with support from the Ethan Allen Institute, is calling on Vermont citizens to stand up and demand fair, sustainable government spending policies. These would:

 

  • Limit Government revenue growth to the rate of inflation plus population growth.
  • Require voter approval for any tax increase above this amount.
  • Give the Governor a Line Item Veto to help eliminate wasteful or questionable spending.
  • Use all revenue collected beyond the above limits to lower Vermont’s unaffordable tax burden by returning the money to the taxpayers.
  • Such policies, if put into practice, would allow us to sustain the programs and services we enjoy now, but would stop Montpelier from taking on more and more burdens that Vermont taxpayers simply can’t afford.

     

    Our goal is to collect as many signatures as we can informally between now an the Novermber electioin to create a mandate for the 2007 legislature to pass SOS, while gauging support for a fomal, town by town, signature drive to get SOS placed on ballots for Town Meeting Day. 

     

    Montpelier must stop spending our money faster than we can earn it. Period.

     

     

     

    (See proposed SOS legislative language below, and for more information, go to www.TrueNorthRadio.com) 

     

     

    Stop Over Spending

    Proposed statutory language:

     

    XXX. Revenue limitation; return of excess revenues to taxpayers

                (a) The aggregate tax revenues, exclusive of user and license fees, that the state collects from its taxpayers shall not exceed the amount of revenue collected in fiscal year 2006, adjusted annually by the estimated growth in the state’s population and by the change in the value of the dollar in the prior calendar year.

         (b) Whenever in any fiscal year revenues exceed the limit specified in subsection (a), after filling the stabilization reserve funds created by [citations to General, Transportation and Education Fund sections] to no more than five percent of the estimated fund expenditures for that fiscal year, the excess revenue shall be returned promptly to the taxpayers in such manner as the general assembly shall determine.

     

    XXY. Referendum for tax rate increases

    (a) Any act of the general assembly that includes an increase in the rates for individual income, corporate income, business machine, rooms and meals, sales and use, motor vehicle purchase and use, property transfer, land gains, telecommunications, or education property taxes above the levels in effect on January 1, 2007 shall take effect only when ratified by the voters in the next ensuing general election.

    (b) The form of the question to be put to the voters shall be “Shall the general assembly’s proposed increase of the [name of tax] from [current rate] to [proposed rate] be approved?” There shall be a separate ballot question for each proposed tax rate increase.

    (c) A proposed tax rate increase shall be approved if a majority of voters voting on the question vote to approve. Otherwise, the proposed rate shall not take effect, and the previous rate shall continue in force.

    (d) The Secretary of State shall certify the results of the voting on each such question to the Clerk of the House and Secretary of the Senate on or before the first day of the legislative session on the year following the vote.

     

    XXZ. Citizen enforcement

    (a) Any group of one hundred voters of the state shall have standing to petition a Superior Court for a declaratory judgment that the general assembly has failed to comply adequately with the requirements of this section. If the judgment is granted, it shall be accompanied by an order of mandamus to be served upon the appropriate state official, instructing that officer to refuse to authorize or make any payment of legislative pay and allowances for which legislators may become eligible after the date of the judgment. The judgment shall remain in effect until the court determines, upon good and sufficient evidence, that the requirements of [section XXX] have been met. The Superior and Supreme Courts shall expedite any action brought under this section.

    (b) It is the intent and belief of the General Assembly that any curtailment of legislative compensation pursuant to this section shall not constitute a violation of Chapter II, Section 61 of the Constitution.

     

    Proposed House and Senate Joint Resolution:

     

    Whereas, in recent years state taxation has produced revenues that in the aggregate exceed reasonable rates of growth, measured by the increase in the state’s population and the changing value of the dollar; and

    Whereas, the means available to the taxpayers of the state to produce these tax revenues have not increased as rapidly as the actual collections of revenue from them, thereby causing an increasing tax burden on all Vermonters and serious financial hardship on many Vermonters; therefore be it

    Resolved, that this general assembly shall establish a limit upon the aggregate tax revenues, exclusive of user and license fees, that the state collects from its taxpayers to the amount of revenue collected in fiscal year 2006, adjusted annually by the estimated growth in the state’s population and by the change in the value of the dollar in the prior fiscal year; and be it further

    Resolved, that if revenues in FY 2007 exceed this limit, this general assembly shall, after filling the General, Transportation and Education stabilization reserve funds to no more than five percent of the estimated fund expenditures for that fiscal year, make provision for the prompt return of the excess revenues to the taxpayers, in such manner it shall determine.

     

    Constitutional Proposal 6 (2004)

     

    The aggregate tax revenues, exclusive of user and license fees, that the state collects from its taxpayers shall not exceed the amount of revenue collected in fiscal year 2006, adjusted by the estimated growth in the state’s population and by the change in the value of the dollar in the prior calendar year.

                Whenever in any fiscal year revenues exceed the limit, after filling stabilization reserve funds to not more than five percent of the estimated fund expenditures for that fiscal year, the excess revenue shall be returned promptly to the taxpayers in such manner as the general assembly shall determine.

                 Any act of the general assembly that includes an increase in the rates for individual income, corporate income, business machine, rooms and meals, sales and use, motor vehicle purchase and use, property transfer, land gains, telecommunications, or education property taxes shall take effect only when ratified by the voters in the next ensuing biennial general election.

         Any group of one hundred voters of the state shall have standing to petition a Superior Court for a declaratory judgment that the general assembly has failed to comply adequately with the requirements of this section. If the judgment is granted, it shall be accompanied by an order of mandamus to be served upon the appropriate state official, instructing that officer to refuse to authorize or make any payment of legislative pay and allowances for which legislators may become eligible after the date of the judgment. The judgment shall remain in effect until the court determines, upon good and sufficient evidence, that the requirements of this section have been met. The Superior and Supreme Courts shall expedite any action brought under this section. Any curtailment of legislative compensation pursuant to this section shall not constitute a violation of Section 61.

     

    Proposed Town Meeting Resolution:

    Shall our representatives in the general assembly be advised that the freemen of the town of _______ support appropriate legislative action to limit the tax revenues received by the state to the amount of revenue collected in fiscal year 2006, adjusted annually by the estimated growth in the state’s population and by changes in the value of the dollar; and to return any excess revenues to the taxpayers?