[RationalExpectations]

Because of SARS-Covid-19, costs of living everywhere will go up.

At the State and Local level, both in VT and across the country, public sector pension plans and their investments in the stock market are taking a MAJOR hit. These fund the pensions for teachers, police, fire, and government workers at the state and local level.

These pension benefits are pretty much carved in stone and for the most part cannot be reduced.

To pay the retirees their pensions going forward, taxes will almost assuredly go up - and not by a small amount.

This isn't just a VT issue, of course, taxes will almost assuredly going up everywhere. New taxes will be invented. Surtaxes will be levied.

The arithmetic is unforgiving.

[Urban Fatigue]

I can't recall where I saw, in a thread here, there was some sort of exemption or subsidy for retired person living in Maine for 12 months + and I could've sworn somebody mentioned a similar subsidy thing here but now I can't find it. I might search around about that sort of thing. I agree it seems like a great place to retire but the taxes put me off as well, only because my budget is small.



Education (where some taxes go) does pay off in the long run, here in Southern California they won't pay teachers and it shows! I suspect services for snow removal from the roads may be a cost we don't have here too. I think I won't mind in the long run if it funds worthwhile things.

[GeoffD]

Originally Posted by Urban Fatigue

I can't recall where I saw, in a thread here, there was some sort of exemption or subsidy for retired person living in Maine for 12 months + and I could've sworn somebody mentioned a similar subsidy thing here but now I can't find it. I might search around about that sort of thing. I agree it seems like a great place to retire but the taxes put me off as well, only because my budget is small.



Education (where some taxes go) does pay off in the long run, here in Southern California they won't pay teachers and it shows! I suspect services for snow removal from the roads may be a cost we don't have here too. I think I won't mind in the long run if it funds worthwhile things.

The Vermont Act 68 state school property tax is means tested. It has nothing to do with age. The rules for qualifying are that you have to have a full year resident tax return before applying for the property tax credit. If you moved to Vermont now, your 2021 state income tax return would be used applying for a 2022 tax break.


The state has a downloadable spreadsheet. It requires a bunch of digging to complete the spreadsheet. Any Vermont CPA could quickly tell you where you would stand.



Link: https://tax.vermont.gov/property/tax-credit

[bostongymjunkie]

Originally Posted by RationalExpectations

Because of SARS-Covid-19, costs of living everywhere will go up.

At the State and Local level, both in VT and across the country, public sector pension plans and their investments in the stock market are taking a MAJOR hit. These fund the pensions for teachers, police, fire, and government workers at the state and local level.

These pension benefits are pretty much carved in stone and for the most part cannot be reduced.

To pay the retirees their pensions going forward, taxes will almost assuredly go up - and not by a small amount.

This isn't just a VT issue, of course, taxes will almost assuredly going up everywhere. New taxes will be invented. Surtaxes will be levied.

The arithmetic is unforgiving.

Yes, its the pensions of public employees (and COVID) that are to blame. It's not the fault of policy makers who insist on spending money they don't have, letting indigent people from around the world walk freely across our borders, giving welfare benefits to people who don't need them, social security to people who have paid little to nothing into it, funding wars we don't need to be in, enriching themselves through crony capitalism etc etc. No, it's none of that. It's all because of the public employee pensions and COVID. People who get up everyday and go to work.

[skeddy]

Originally Posted by bostongymjunkie

Yes, its the pensions of public employees (and COVID) that are to blame. It's not the fault of policy makers who insist on spending money they don't have, letting indigent people from around the world walk freely across our borders, giving welfare benefits to people who don't need them, social security to people who have paid little to nothing into it, funding wars we don't need to be in, enriching themselves through crony capitalism etc etc. No, it's none of that. It's all because of the public employee pensions and COVID. People who get up everyday and go to work.

agree, however the people that get up everyday and go to work voted for those politicians who approved these pension programs, they knew they wouldn't be around to answer for it. Somebody's gonna be left holding the bag.

[bostongymjunkie]

Originally Posted by skeddy

agree, however the people that get up everyday and go to work voted for those politicians who approved these pension programs, they knew they wouldn't be around to answer for it. Somebody's gonna be left holding the bag.

Those who want the services need to hold the bag.

[ctr88]

A big reason its so critical for Dems to get the white house and congress to go Dem, is all these Dem run states will need to get bailed out by the federal gov't. CT, IL, NJ, etc... that have way under funded pensions and too high "cost structures" to run their states, and are not growing much in population or in some cases declining. Thus losing their tax base. They are going to need to have the Federal Reserve "print money" (the USA does not have), to lend it to the treasury, who will then uses buy MUNI bonds issued by states, so they can kick the debt can down the road further. So the liberals that ran these states into the ground never have to pay the piper for their profligate ways. This money printing by the Fed will end up just further indebting the country, slowing growth, possibly causing currency devaluation and all sorts of issues. All because no one wants to face the truth.

I would say let states go bankrupt like Detroit did and allow the MUNI bond holders take a big haircut. Then investors in MUNI's might get religion and not be so easy to lend to these states until the get their budgets in order.

[jackmccullough]

Originally Posted by bostongymjunkie

Yes, its the pensions of public employees (and COVID) that are to blame. It's not the fault of policy makers who insist on spending money they don't have, letting indigent people from around the world walk freely across our borders, giving welfare benefits to people who don't need them, social security to people who have paid little to nothing into it, funding wars we don't need to be in, enriching themselves through crony capitalism etc etc. No, it's none of that. It's all because of the public employee pensions and COVID. People who get up everyday and go to work.

Those public employee pensions are payment for the work those public employees already did. They are owed that money.

You go and get refunds from the banks who financed public construction projects, and the construction companies that built the roads and office buildings and then we can talk about making public employees pay back some of the money they're owed for the work they did.

[bostongymjunkie]

Originally Posted by jackmccullough

Those public employee pensions are payment for the work those public employees already did. They are owed that money.

You go and get refunds from the banks who financed public construction projects, and the construction companies that built the roads and office buildings and then we can talk about making public employees pay back some of the money they're owed for the work they did.

Um, please tell me where I argued that public employees should pay back money?? Try to follow along.

[michael49]

Originally Posted by GeoffD

The Vermont Act 68 state school property tax is means tested. It has nothing to do with age. The rules for qualifying are that you have to have a full year resident tax return before applying for the property tax credit. If you moved to Vermont now, your 2021 state income tax return would be used applying for a 2022 tax break.


The state has a downloadable spreadsheet. It requires a bunch of digging to complete the spreadsheet. Any Vermont CPA could quickly tell you where you would stand.



Link: https://tax.vermont.gov/property/tax-credit

This sounds pretty favorable to me. My wife and I aren't working at the moment, will be living off of investments and will definitely be way below the $138k max. household income over the next few years. Not sure how much of a credit we would receive, but that would definitely help to mitigate the crazy high VT property taxes.