Flat tax solution
The Burlington Free Press article Sunday about the new state tax department computer system sounds like it will add value to the department’s collection efforts. If it cost $29 million but will be able to collect a new $60 million from non-filers, then that tops any financial news lately out of Montpelier. Hopefully someone will track that assertion through the ramp up and beyond.
But the discussion raises a different issue for me. That is the flat tax option. If we had a flat tax not only would we not need this computer power but we would probably only need about 10 percent of the people working in the tax department. We might also gain on the non-filers, too.
If Vermonters want to reduce state expenditures and possibly generate a surplus driven budget, this is one not very complex way to do it.
But I doubt if I will see such a change in my lifetime unless more innovation and courage is shown in Montpelier.
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