Increased bottle handling fee to 3½ cents
Recent NFIB/Vermont victories:
Increased bottle handling fee to 3½ cents
For the first time in more than two decades, legislation passed to increase the fee paid to bottle handlers by a half-cent. Also the Vermont Agency of Natural Resources, together with representatives of the industry, will conduct an in-depth study of the handling fee system, feasibility of a two-tiered recycling system based on co-mingling, a cost versus benefit analysis of the redemption system, and disposition of unredeemed deposits collected on beverage containers.
Passed unemployment compensation exemption for "direct sellers"
Legislation passed that makes a significant adjustment by exempting "direct sellers" from paying unemployment insurance taxes and from collecting unemployment insurance benefits. A direct seller is essentially defined as a person engaged in selling consumer products out of their home. Vermont's smallest business will be exempt from paying a tax that has no direct correlation to the benefit they would derive. The passage of this legislation will save a small-business owner hundreds if not thousands of dollars.
Led health-care tax opposition
An administration-backed proposal on health-care reform has some good provisions with respect to a number of cost-related areas. However, one provision of the bill would have imposed a 2 percent premium tax on health insurers. The tax would have raised $14 million in new revenue used to fund a high risk pool for individuals with high claims expenses. NFIB/Vermont, together with insurers, convincingly argued that the increased premium would be passed on to their consumers.
Defeated local option tax authority
Legislation was defeated that would have allowed municipalities to impose broad and sweeping local option taxation authority. Taxation at all levels should be fully debated; imposition of tax policy should not be authorized by short-circuiting public debate.
Reduced paperwork burden on business
Legislation was defeated that would have required employers to file new employee hire information with the state of Vermont on individuals who receive a 1099 form, as well as a W-2. This legislation would have required business owners to withhold child support payments from contract employees' paychecks -- individuals who work on a contractual basis, i.e. snow plowing, lawn care, janitorial and the like.
Led workers' compensation reform: NFIB/Vermont continues to lead reform of the dysfunctional worker's compensation system in Vermont. Members testified, wrote and voted ballots to urge a stop to the skyrocketing increases of workers' compensation. A 16 percent increase had been experienced across the board; NFIB/Vermont passed legislation that would assist stabilization of premiums for small businesses. NIFB/Vermont fought to obtain clarification of the definition of a sole proprietor and independent contractors – this effort was successful. Workers' compensation assessment will decrease from 0.85 percent to 0.40 percent – cutting employer contributions by more than half.
Led opposition to health-care tax: NFIB/Vermont opposed legislation that would have resulted in higher health insurance premiums for small business currently providing health insurance to their employees. NFIB will continue to fight the proposed health care provider tax. Small business will not be saddled with additional taxes for doing good works. NFIB will stand against legislation that cost shifts to Vermont small businesses.
No increase in small-business taxes: NFIB/Vermont ensured that this year's state budget passed with no disproportionate tax increases imposed to small business. Vermont spends $2.6 billion in the General Fund, Transportation Fund, Education Fund and dollars that are drawn down from the federal government. NFIB/Vermont closely monitored the construction of the budget to ensure that spending did not exceed that of inflation.
The 2002 fall elections brought about big changes for Vermont state government with the victory of NFIB-endorsed state Treasurer Jim Douglas, a strong supporter of the small business community with aggressive plans for economic development in Vermont.
2001
NFIB's strong lobbying efforts paid off this year for Vermont's small business owners when a proposal to raid the state Unemployment InsuranceTrust Fund was soundly defeated in the House of Representatives. Because of the way the bill was structured, it would have cost Vermont employers millions of dollars in federal UI tax credits. Aside from that fact, the bill would have tapped the UI fund to pay for benefits unrelated to traditional unemployment insurance benefits, potentially endangering the availability of those funds to pay benefits during times of high unemployment.
1999:
Workers' Compensation "Exclusive Remedy": NFIB fought efforts to chip away at the exclusive remedy theory that is the heart of the workers' compensation system. Under this theory, in exchange for an employer paying benefits to an injured worker, the injured worker forfeits his or her right to bring a civil action for workplace injuries. A successful effort to change this theory and to allow civil suits would completely undermine the workers' compensation system. NFIB was successful in defeating such an effort during debate of a workers' compensation bill in the Senate this year.
Tax Cuts: NFIB has long advocated for the reduction in taxes during flush economic times. With an anticipated $69 million general fund surplus this year, the timing was right for a reduction in the state income tax, the sales tax and the property tax. At a total of over $50 million, this is the largest tax cut in state history.
Permit Reform: Small business owners continue to be frustrated by the long and complicated permit process in Vermont. Although no decisive action was taken, the House of Representatives for the first time in years had a debate on the need to reform the state land use permitting process. NFIB will continue to work with other business and trade associations to pass thoughtful and comprehensive permit reform.
1998:
Workers' Compensation: NFIB was successful in defeating workers' compensation legislation that would have increased employee benefits and increased workers' compensation premiums.
Unemployment Insurance: a proposal to institute a surcharge on unemployment compensation premiums was defeated, through NFIB's lobbying efforts.
Corporate Minimum Income Tax: NFIB successfully lobbied against an effort in the House of Representatives to retroactively increase the corporate minimum income tax.
1997:
Unemployment Insurance Surcharge: Forestalled-NFIB successfully lobbied against the enactment of an Unemployment Insurance Surcharge. The proposal, H.314, wold have created a new government training program, funded through a surcharge of 0.1 percent on all Unemployment Insurance premiums. NFIB opposed H.314 as a new tax on business and as an unnecessary duplication of the already successful, yet under-funded, Vermont Training Program.
Legislative Review of Regulatory Burdens: Passed-NFIB successfully lobbied for the creation of a summer study committee, the Small Business Development Advisory Council, which will review regulations that prove to be burdensome to the creation and expansion of small business entrepreneurship in Vermont.
1996:
Property Tax Reform: NFIB successfully opposed efforts to enact a statewide property tax that included $60 million in new taxes. The legislation failed after numerous attempts to enact a homestead tax exemption, inverse sharing of tax dollars among rich and poor towns, and a statewide property tax on new construction.
Workers' Compensation Surcharge: NFIB fought to defeat a House-passed proposal that would have made permanent the 0.7 percent surcharge on workers' compensation insurance premiums, after 1998. Working with Senate supporter, NFIB was successful in having House-passed language rejected that provided for the transfer of the rate setting authority from the legislature to the ten-member Joint Fiscal Committee.
Minimum Wage: NFIB opposed a minimum wage bill that called for a 50 cent increase, to $5.25, by January 1, 1998. Although H.453 was enacted, it was significantly changed. The total new increase was reduced to 40 cents but, most important, a 90-day training wage of $4.75 was included, which will prove to be a significant savings for small businesses.
Budget Balanced: NFIB supported Senate action to reduce general fund spending in order to achieve a balanced budget and to remove the threat of a $50 million state deficit, without raising any major new taxes.
