VT Bankers Oppose Minter Tax Plan Posted by AVCU on 11:35 PM

According to a 9/14 Vermont Public Radio feature story, members of Vermont's banking community oppose a proposed $12 million investment in public higher education. The proposal by Democratic gubernatorial candidate Sue Minter, entitled “Vermont Promise,” relies on $12 million in new state revenues generated by new taxes on Vermont banks. Her plan would provide tuition-free community or technical college for every student in Vermont.

Minter’s plan would reportedly increase the bank franchise tax and subject some Vermont banks to the corporate income tax, from which they are currently exempt. She says that “Four out of 10 students graduating from high school do not go on beyond high school, and meanwhile two-thirds of the jobs require some kind of training and education beyond high school.” She goes on to say that 

“This is a mission that the banks should be a part of. It’s in their interest to make sure that we do more to get young Vermonters beyond high school.”

Vermont Bankers Association President Chris D’Elia says the move would likely result in branch closures across the state and that it incent bigger banks to cease investing in Vermont, and seek friendlier pastures elsewhere. Meanwhile, Northfield Savings Bank president Tom Leavitt doesn’t discount the merits of a more robust financial aid program for high school graduates, but questions why banks should be the funding source and says that "everyone should participate, and it certainly should not be falling on the backs of the banking community alone.”

Minter’s plan would affect the five largest banks in Vermont, but the VBA claims all 20 of its members are opposed.

Minter is among the 85 members of the Board of Corporators of Northfield Savings Bank, as is her Republican opponent Phil Scott.

Read the VPR article in entirety.