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Political notes from Free Press staff writers Terri Hallenbeck, Sam Hemingway and Nancy Remsen


5.25.2007

 

A few million here and there

This might seem like we’re picking on the Vermont Republican Party. That’s not the intention. We believe in equal opportunity picking-on. However, for the second time this week, a VTGOP discrepancy cried out for correction.

This one was an e-mail that went out Thursday, another in the party’s series titled "I know what you did last session ...". This one focused on H. 520, the energy bill that Gov. Jim Douglas has promised to veto.

Here’s what the party is telling its supporters:

"H.520 – a $35 million tax on a successful business that supplies the state
with a third of its electricity, cheaply – could not be a more ill-conceived
idea or come at a worse time. It would reinforce Vermont’s image as a high tax
state, the hostility of the bill will drive away businesses and jobs, it will
directly and indirectly add to the cost of electricity and make Vermont a less
affordable place to live.

Not a single Republican supported H.520, and Governor Douglas has
promised to veto it."


H. 520 does include a tax on Vermont Yankee, which does produce a third of the state’s electricity, but the tax in the bill that passed the Legislatuer amounted to about $25.5 million from 2009 to 2012, not $35 million. If you look at the final vote in the Senate on that bill, Sen. Vince Illuzzi, who has an R after his name whether some Republicans like it or not, voted for it.

If the Republican Party wants to argue – as Douglas does – that $25.5 million is still too much, and that virtually all Republicans voted against it, then so be it. But the $35 million was an earlier proposal, or yesterday’s news.

The fact that the tax changed a fistful of time during the session does pose challenges for the Democratic legislative leaders if they are going to sell this thing to the public. I can’t tell you how many people out there in readerland have had trouble following the bouncing ball on this one. It’s pretty clear the Republicans are eager to tap into that confusion, maybe even spread it.

- Terri Hallenbeck

Comments:
The Repukelicans can't get anything right. I am disowning this party because they are distorting the real facts. I can't stand when Repukelicans try and make my Democrats look bad.
 
Terri - you make a fair point, but let's look at what the Dems are saying in their email blasts:

"McClaughry's piece defends the sweetheart deal that Vermont Yankee is getting at the expense of property taxpayers, apparently believing that it is fair to single out Yankee for a freeze on property taxes."

This is one of the biggest lies perpetuated by the Democratic Party this year.

Yankee is taxed on the basis of its property value, just like every other piece of property in Vermont. Since it operates 99% of the time, it makes sense to tax it just like any other piece of property.

The Wind Energy people have made the argument that it would be unfair to tax them based on the value of their property/equipment, because a wind farm generates electricity only 40% of the time. Thus, they have argued for a tax on the basis of use value - akin to the use valuation program that hobby farmers in VT take advantage of.

The whole concept of taxing wind on use value, rather than property value, was designed to reduce the tax burden of those wind farm owners not to make it "fair" or "equitable".

Applying the same logic to Yankee fails the fairness test, because Yankee is producing power 99% of the time - not 40% of the time. This also fails the fairness test, because every other power generation facility in VT that generates reliable power (i.e. > 95% of the time) is taxed on property value - not use value.

In summary - there is no "sweetheart" deal for Yankee - they get the same treatment that every other similarly situated power generator in VT gets.
 
The Republican party in this state needs a real leader - like Paul Beaudry.
 
The left-wing fools that support the liberal dimocrats don't really care whether or not they destroy industry and good jobs in Vermont. Few of them actually work, and don't realize that the hard working conservative people they constantly sneer at (you know, the "Christians" and "Republicans")are what is paying their way. Just good liberal upbringing and union schools!
 
This "bubba" is a flip-flopper. In one post he's condemning the right. In another, he bemoans the left. He is just another in a long string of false prophets, who try and steal my mighty thunder, but to no avail. When I went to the top of Jay Peak to deliver my sermon on the mount, I warned that persons like this "bubba" would come forward, spreading false gospel and claiming they had achieved absolute enlightment, like myself. Not true. Damn this "bubba" to the fires of hell, for he is truly a lost soul.
 
The last thing the Republican Party needs is Beaudry at the helm...if he does, I'm gone.
 
I checked the roll call votes.

It appears ALL the Republicans voted against the Yankee tax, but at least one Republican voted for the overall global warming bill.
 
As Ronald Reagan might have said to Rob Roper (VT GOP Ex Dir)...

"There you go again, Rob!"

Rob Roper as VT GOP Ex Dir continues the Karl Rove style of politics like he did as the director of FreedomWorksVt...

"the truth does not matter if it slams a democrat!"

And as for the "sweetheart " deal... How many other businesses or residences had their property tax rate frozen at 2002 levels - even with an addition to the business?
 
Hint: If you see "Bubba" praise the left, it is, of course really from a loonie jackass attempting to emulate the wisdom and insight of the real Bubba. Bubba knows that imitation is the highest form of flattery so he does not get upset.
 
How can you vote against the tax and for the bill?
 
Still don't get the "sweetheart" deal, do you? You need to understand how assets are valued. I know its a hard concept to grasp in the world of flip-flops, grannola, and Cheech & Chong, but this is how it works:

Property is valued on its fair market value - in other words, what someone else is willing to pay for it. That's why we have listers - they come around every few years and assess the value of your house or business property. If there are factors that depreciate the value of your property, they make the appropriate adjustment - same as if it appreciates. Of course, unless half of your house has burned, its likely that your property has appreciated in value in the current VT real estate market.

Now - take VT Yankee. It has a limited lifespan. The property depreciates in value as it approaches the end of its life. In the simplest terms, Entergy could sell the property in 2002 for more than what it could sell it today. So, in effect, VT Yankee is already getting screwed by not having their property revalued every year. If it did, it would see a REDUCTION in property taxes every year.
 
Good points - but I think you may be slightly over the heads of the lefties who don't understand economics - only "take" from the producers.
 
There were two roll call votes. One was to strike the Yankee tax from the bill. ALL the Republicans voted for that move. The vote was 15-14.

Then there was a roll call vote on whether the bill should pass. Even more senators voted in favor of the overall bill, even though they had voted against the tax.

This is not unusual. The key vote that day was whether to strike the Vermont Yankee tax from the bill.
 
Actually, regarding the "sweetheart" deal -- More and more commercial property in VT is being reassessed today (by cities and towns) by using the income method not property market value.

That's why you are seeing huge shifts from non-residential to residential resulting in higher property taxes paid by residential.

And don't forget that when Act 60 was first implemented, machinery & equipment tax for education was eliminated - a huge tax break for commercial.

Now back to the income method - based on that premise, VY should be taxed based on the income generated, i.e. the 20% increased output of electricity, the increased price per kwh, AND the unanticipated revenues from forward capacity and greenhouse gas reduction payments.

Unfortunately, the business community wants it both ways - ti use the income method ONLY when their income goes down.
 
This is an intelligent and informative string of comments. if only the overly-emotional, brain-turned-off debate on the dumbass Freyne blog were this intelligent.
 
Hi Sweetheart - please cite some commercial properties that are being assessed on income vs. property value. And specifically, please cite which power generation facilities in Vermont are taxed on income vs. property value.

I am aware of none.
 
Terri-
It isn't "picking on" Republicans to point out the misleading/lying information they disseminate. It is called journalism. Try it more often. We will all benefit.
 
If you went to the Vt. Dem. Pty. website on a weekly basis, you'd see some lying political commentary that would make your head "spin." Just because the Dems are the party in power in this state at the moment doesn't mean they should spin their policies (or outright lie about them), or tell half-truths about the Governor's positions. In fact, to the contrary: the fact that they have a comfortable domination of the legislature and most of the statwide offices suggests that they do not need to "spin" the facts and should bend over backwards to tell the absolute, complete, and unvarnished truth. The current weekly digest on the Dems website is a perfect example of what goes on there every single week. This week they say that since Gov. Douglas plans to veto Shumlin's energy efficiency bill, the Gov. doesn't support efforts to curb global warming. That is blatantly false, and knowingly incomplete. What the Chair of the Democratic Party knowingly does not say in this piece is that Douglas opposes this bill primarily because of the last-minute, unfair slam-tax it imposes on Vermont Yankee (apparently to further Shumlin's personal political ambitions by shoring up his credibility with the ultra-left).
 
Not to mention creating a huge new government bureaucracy with a very large cost of administrating it.
 
Still describing anything as "Karl Rove style" or "Rovian" etc. in 2007 is the rhetorical equivalent of wearing acid washed jeans pegged at the ankle: terribly passé. Honestly leftists, is it too much to ask for you to find a new villain? If not, what about a new catchphrase? I can't say I'm a Rove fan myself, but even pabulum needs a face lift every few years.
 
Do you want to stop global warming and create new jobs? If so, pass this bill.

Nobody said it would be free. And if you simply can't tolerate the tax on Yankee, come up with the money to fund this effort elsewhere.

Or else just admit that you will stop global warming and create new jobs only if it's free. And try to keep a straight face while you do it.
 
How would new jobs be created? Do you mean taxpayer dollars to connected leftists in the state that would then commission "studies" ad nauseum? I suppose we would end up with clap-trap solar panels on roofs and some spotty insulation installed by welfare recipients? And of course the wealthy friends of Shumlin and company would reap great amounts of money and in the end nothing would change. Typical liberal "job" creation!
 
This bill is just a job creation scheme for Scudder Parker who's tapped to be the czar of this "utility"
 
Scudder Parker cannot lead anything!
 
You are 100% correct! Scudder is a failed "minister" who dumped his wife for some lefty in Montpelier and now needs tax payer dollars to survive in his "new" lifestyle"! He couldn't handle a job at McDonalds.
 
Deb Markowitz for Governor
David Zuckerman for Lt. Gov
 
Breaking News: the wheels have fallen off the impeachment movement and the Democratic Party has split: http://www.greenmountaindaily.com/showDiary.do?diaryId=1266

HA!
 
That is hardly news
 
You say that the only choice to stop global warming and create new jobs is to pass this bill? Are you truly either: a) an idiot, or b) pre-programmed to repeat everything Pete "what's-in-it-for-me" Shumlin tells you? Or maybe you actually are Pete Shumlin.

Yeah, I'm in favor of doing something about global warming and creating jobs. I'd actually support Shumlin's bill -- even though it's more about advancing his political career than anything else. But just not by stealing someone else's money. That's right, stealing. After you made a tax deal with them 2 years ago. And stealing from a company that generates 1/3 of our cheap electricity while emitting not a molecule of CO2. Yeah, that's brilliant and courageous. Takes a lot of "guts" to fund your project by stealing money from a corporation that can't vote in your next reelection campaign.

Yeah, I'm willing to pay for Shumlin's energy bill: with the tax being where it belongs -- on home heating oil and gasoline. Those are the sources of the problem. Yeah, that's right, I'm willing to pay for this good cause with my own money, not somebody else's stolen money.

Are you?

I don't want it "free," as you say. I'm willing to pay for it. Out of my own pocket. In fact, you're the one who wants it "free," because you're not paying for the program, you're forcing someone else to do it for you.

So if you believe as strongly as you pontificate about this program, call Shumlin and tell him you want the tax where it belongs, on your personal consumption of fossil fuels.
 
Shumlin is so lost in his own ego
he can't even see where the problem is.
 
I second that.
 
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