"Willingness" to Pay is as Important as "Ability"  
By Rob Roper

The recent and powerful op-ed by Glen Wright, CPA, Why we have abandoned Vermont (Click Here for the article), has brought some much needed attention to Vermont's tax code. We better figure out how we're going to generate revenue and from whom, and recognize the fact that whomever this turns out to be needs to be a willing as well as able participant. 
 
Considering this critical factor, the attitude of unappreciative greed is coming from the ruling Democrat/Progressive supermajorities in the legislature is dangerous to our future financial security and our social safety net. After all, someone's reason for leaving Vermont does not have to be a lack of ability to pay. It is often an unwillingness to put up with the frustration of giving so much to a community only to be insulted, belittled, dehumanized and lectured to by out-of-touch politicians and far-left editorialists for not forking over even more. 
 
According to the Vermont Economy Newsletter (March, 2009), those earning over $100,000 pay roughly 65% of all Vermont income taxes, but represent just 16% of the population (and less than 11% of total tax returns). Since this same economic demographic is the one not protected by "income sensitivity", it is safe to assume (though I don't have the exact statistical breakdown) that these folks are also paying a disproportionate amount of Vermont's property tax burden as well.  When these folks leave for whatever reason, or decide to spend six months and a day in Florida, it's the rest of us who have to pick up the tremendous slack. 
 
Democrats and Progressives continuously justify the confiscation of other people's assets under the rhetoric of "they're rich and they have the 'ability' to pay." But, it's important remember that in a free society "willingness" is just as, if not more, important than ability. After all, the antebellum South had a labor policy based only on African Americans' "ability" to work regardless what their owners were willing to offer in return. The North, on the other hand, had a free labor policy based on both parties' not just ability, but willingness to work and to pay respectively. We all know which approach worked, though it seems our far left legislature today has forgotten why. 
 
The same principles apply to businesses and their owners. If they are no longer willing to put up with the taxes, regulations and vile accusations of being mean-spirited polluters, anti-environment, exploiters of labor, or worse foisted upon them from Montpelier, it's those who are left behind who feel the pain. We've all witnessed the parade of companies downsizing or leaving Vermont outright, and it's not a surprise that according to state revenue figures released on June 12, Vermont's corporate revenue was down 21.03% and 25,000 Vermonters are on the unemployment line. 
 
When government takes by force more than people are willing to pay, collapse is the inevitable long term result. 
 
If getting down on our knees in gratitude to these successful people who drive our economy and pay our bills is a bit much, we should at least appreciate and encourage the relationship Vermont has with these citizens, and properly recognize the fact that they fund much of our government. Our leaders and our state policies need to actively encourage successful providers to stay here, come here, live here, work here, spend here, invest here, die here, or some profitable combination of these activities. Instead, their busy chasing them away.
 
Right now, the very Vermonters we need most from a revenue standpoint are hit with the highest property tax burden and the second highest marginal income tax rates in the country. The legislature just voted to tax their investment income more heavily as well as their estates when they die. What reason are we giving these people to stay here? The left says nice views and a unique lifestyle, and this is true. But being treated day in and day out like a cash-filled piñata does not a happy, easygoing lifestyle make. 
 
I have debated Democrats and Progressives who glibly point folks unwilling to put up with this level of left wing abuse and taxation to the door. That's fine, but only if they're also willing to give up the big government programs that the wealthy and successful pay for.

Rob Roper is the Chairman of the Republican Party and the former Editor of the True North Website.