Flavored Tobacco, Wealth Taxes, Education Funding, 

I use Google's Bard Artificial Intelligence software to help me with research. It's a starting point. Every reply is taken with a HUGE grain of salt. Before the Senate voted on the Bottle Bill override I asked Bard: "Did the Vermont Senate override the Governor's veto of the Bottle Bill?" It replied with a "Yes," a date the vote was taken, and the vote count. All totally false! Two days later I tried again and it had corrected itself by saying the Senate had not yet voted. But, Bard is a good way to get started on researching a topic and you can ask for the sources of its answers to see for yourself if you believe it. With Bard, you can also carry on a conversation.

Here's an example:

My Question:  Is Colchester Vermont the best place to live in the world?

Bard's Answer:

Whether or not Colchester, Vermont is the "best" place to live in the world is entirely subjective and depends on your individual priorities and preferences. It's impossible to objectively declare one place the absolute best for everyone, as different people value different things.

However, I can share some information about Colchester that might help you decide if it aligns with your ideal place to live:

Pros of living in Colchester:

• Beautiful natural setting: Located on Lake Champlain with access to the Green Mountains, offering stunning scenery and abundant outdoor recreation opportunities.

• Safe and friendly community: Generally low crime rates and a reputation for strong community spirit.

• Highly-rated schools: Public schools consistently rank well, making it a desirable choice for families.

• Proximity to Burlington: Close enough to enjoy the amenities of a larger city with restaurants, shops, and events, while maintaining a small-town feel.

• Relatively affordable: Compared to other parts of the country, housing costs and cost of living can be considered moderate.

Cons of living in cold climates:

• Cold and snowy winters: Can be harsh for some, with significant snowfall and below-freezing temperatures.

• Limited public transportation: Primarily car-dependent, which can be inconvenient for those without a vehicle.

• Remote location: May feel isolated for those who prefer closer access to major cities or diverse cultural experiences.

• Limited job opportunities: Job market might be limited in certain industries, potentially requiring commutes or relocation for specialized careers.

• Higher taxes: Vermont has higher-than-average state and local taxes compared to other parts of the United States.

Ultimately, the decision of whether Colchester is the right place for you depends on your personal priorities. If you value natural beauty, safety, good schools, and a small-town atmosphere, it could be a great fit. However, if you prefer warmer weather, easy access to public transportation, diverse cultural experiences, or abundant job opportunities, other locations might be more suitable.

Here are some resources that might help you learn more about Colchester and compare it to other potential places to live:

• Colchester town website: <invalid URL removed>: <invalid URL removed>

• Niche.com - Best Places to Live in Vermont: https://www.niche.com/places-to-live/search/best-places-to-live/s/vermont/: https://www.niche.com/places-to-live/search/best-places-to-live/s/vermont/

• <invalid URL removed> - Colchester, VT: <invalid URL removed>: <invalid URL removed>

I encourage you to do your research and consider all factors before making a decision about where to live.

My Next Question:  What about the cost of living?

Bard's Answer: 

You're right, cost of living is a crucial factor to consider when choosing a place to live. Here's a breakdown of the cost of living in Colchester, Vermont:

Overall:

• 12% more expensive than the national average according to ERI Economic Research Institute.

• Similar cost of living compared to the average city in Vermont.

Specific categories:

• Housing:

  • Median home price: $499,000 (higher than national average)

  • Rent for a 2-bedroom apartment: $1,716.5 (higher than national average)

• Food: Slightly more expensive than the national average.

• Transportation: Slightly more expensive than the national average.

• Utilities: Average costs for electricity, water, and garbage.

• Healthcare: Slightly more expensive than the national average.

Resources for further research:

• SalaryExpert - Cost of Living in Colchester, Vermont: [https://www.salaryexpert.com/cost-of-living/united-states/vermont/colchester]

• ERI Economic Research Institute - Cost of Living in Colchester, VT: [<invalid URL removed>]

• Niche - Colchester, VT: [<invalid URL removed>]

Additional notes:

• These are just average costs, and your actual expenses may vary depending on your lifestyle and spending habits.

• Consider factoring in any potential income adjustments needed to maintain your desired standard of living in Colchester.

• If you have specific needs or preferences (e.g., larger home, car-free lifestyle), research those specific costs as well.

I hope this information helps you make an informed decision about whether Colchester aligns with your budget and cost-of-living expectations.

I asked Google's Bard: Is nicotine additive? 

The reply? "Are you kidding?"

That's not really the reply I received. Instead, it said that nicotine is "highly addictive." I already knew that.

S.18 is a Senate bill that proposes to ban flavored tobacco products.  It came over to the House this session. The House Human Services (HHS) committee has been taking testimony and voted it out last week with some changes.  The vote out of Human Services was 10,0,1 which means it had support from all three political parties.

The HHS version of the bill is addressing increasing addiction to nicotine products by Vermont youth. But it's more complicated than that (of course).

If you read the Findings portion of the bill you get a good idea of the reasons the bill  has been proposed:

• According to the 2019 Vermont Youth Risk Behavior Survey, 31 percent of Vermont high school e-cigarette users used e-cigarettes daily, up from 15 percent in 2017.

• Ninety-seven percent of youth e-cigarette users nationally reported in 2019 that they had used a flavored tobacco product in the last month, and 70 percent cited flavors as the reason for their use.

• Fifty-four percent of youths 12–17 years of age nationwide who smoke use menthol cigarettes. Nearly 65 percent of young menthol smokers say they would quit smoking if menthol cigarettes were banned.

The health care costs attributed to smoking are considerable. 

As mentioned in last week's journal there has been considerable pushback from flavored tobacco users. A fellow legislator who is on the Human Services committee has counted over 400 emails from people asking her to vote "No" on S.18. There are so many that we begin to doubt their authenticity. I have received several sincere emails from Colchester residents explaining their opposition. Those I appreciate.

In My Committee

S.18, along with a boost in emails, came to my committee last week. The Ways & Means committee looks at the fiscal impact of the bill; how does it affect the finances of the State. And do we think that's good or bad. 

The Problem

We  received a Fiscal Note from the Joint Fiscal Office about the financial effect of S.18. Though it may well save a lot in health care costs in the future, right now we lose tax revenues of $1.2 million in FY2025, then $7 to $13 million FY2026 and beyond. That's a big hit in a year when money is considered particularly tight. Though only a portion of that amount might come out of Education Fund, it's a concern.

I support the intent of the bill, but I don't like the loss of revenue. My committee vote will be difficult.

In preparing this explanation I took a careful look at the bill. I need some clarification on parts of it. There's work to be done.

Last week we also heard further testimony on two Wealth Tax bills: H.827 and H.828. I mentioned these last week. Keep in mind that these are "wealth" taxes. You may not be getting hit with this tax.

H.827

The stated purpose of the bill is: "to apply income tax to 50 percent of the unrealized gain or loss of a taxpayer’s assets. This treatment would only apply to individuals with a net worth of $10,000,000.00 or greater. The bill would cap the amount of unrealized gains subject to  taxation at 10 percent of the worth of a taxpayer’s net assets in excess of $10,000,000.00 in a tax year."

The problem is that many people in Vermont have a lot of assets but not much earned income. They might have large stock portfolios (other than retirement accounts), that have grown over the years. If they need cash to live on, rather than selling the stock which would be taxable income, they borrow against its value and don't have to pay taxes on that debt. Then, near their end of life, they move to Florida where there is no estate tax and die. While in Vermont they may well continue to accumulate wealth, use the roads, and other services, but pay little, or no income tax. 

This bill would tax that increasing wealth. It's complicated and administratively messy.

H.828

This bill is much shorter. All it does is say that if your federal adjusted gross income is greater than $500,000 a year, you pay a 3% surcharge on that adjusted gross income. That's in addition to the regular income tax amount. 

The Joint Fiscal Office (JFO) produced a Fiscal Note on H.828 that looked at who would pay how much more to the State. The bottom line is that the bill would bring in an estimated $71.4 million a year. You can watch the JFO presentation here.

Why not?

The two big arguments I've heard against a wealth tax is:

1. The reduce the incentive for people to make money by starting companies and hiring people.

2. Rich people will stay away from Vermont.

I doubt the first and haven't seen enough proof of the second.

Do people consider taxes when deciding where to live?

Yes and No. What we've heard in testimony is that until people reach close to the end of their lives, they really don't count tax policy as much as other factors: employment, housing, schools, climate, safety, life styles, etc. I know that in my many moves from state to state and even to other countries I never looked at the tax policy of the state., but I was not a high-earner or about to start a business.

There have been plenty of anecdotes about people leaving Vermont because of taxes, but I'm told the research doesn't confirm it. Next week we will be receiving testimony on migration in and out of Vermont, my understanding is that just recently there has been an influx of younger high-earners. Here's a little from the State Treasurer.

We continue to work on education funding and projected increase in the average statewide education property tax bill; making sure we understand what is involved and why. Next we move to proposals to deal with it.