By reducing debt this year, when times are good, we strengthen the state's position in an uncertain future. Second, debt reduction is a tax cut for our children. Each time we borrow, we hand the bill to a future generation. Imagine having those funds available to pay for child care, to help seniors with the costs of prescription drugs, or to invest in fixing roads and bridges. Finally, debt reduction is the most prudent of the alternatives.
Tax cuts are always a popular option.
Vermont just cut the sales tax and the personal income tax again this July. But this surplus comes from a boom in the stock market, which is volatile. These revenues are not sustainable enough to trigger new tax policy. Besides, Vermont is coupled to the federal income tax, so any new cuts passed by Congress will trigger even further reductions in state tax code automatically. The temptations to spend are many.