Tag Archives: Mark Zandi

Tom Pelham is mad as hell. And just as wrong

Now that Bruce Lisman has cut ties with his vanity platform, Campaign for Vermont, the organization is foundering financially and, worse, is stuck with budget scold Tom Pelham as its chief public voice.

Pelham has spent the last five years writing opinion piece after opinion piece slamming the Shumlin administration over taxation and budgets. Now, his temperature appears to be rising — to the point that he might want to check his blood pressure. Reading his latest commentary, I can practically see steam shooting out his ears.

His point, as ever, is that the Shumlin administration is bankrupting the state, wrecking the economy, and imperiling our futures by overtaxing and overspending. And in the process, he repeats a fundamental misperception about money that’s commonly held by budget hawks everywhere.

See if you can spot it:

Excluding federal funds, the state budget passed by the Legislature and signed by the governor in 2011 required $2.954 billion in revenues extracted from the Vermont economy through taxes, fees, fines, assessments, settlements, etc., and deposited into various state funds.

The key word there is “extracted,” which he repeats three times. Pelham appears to believe that all government revenue is collected, thrown onto the burn pile, and set ablaze. Which is so completely wrong it’d be funny if so many serious, influential people didn’t share that belief.

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