Let’s see what HR says about it

2023-05-17

Dear friend,

Vermont's 2023 legislative session ended on Friday with our passage of Vermont's FY2024 budget. The next regular session begins January 2024.

But 2023 isn't quite over yet.

--Before adjourning, the House and Senate voted to reconvene on June 20, 2023. The Governor is signaling that he plans to veto the budget and likely other bills. The Legislature will have to return to pass a budget by July 1st, and consider voting to override the Governor.

For a bit more background on what's on the line, check out previous newsletter, 2,300 Vermonters to become homeless July 1st, and VT Digger's coverage: Legislature approves $8.5B state budget — and braces for a messy override vote.

--We also passed H.R.11, House resolution relating to establishing the Special Committee on Impeachment Inquiry and granting it investigatory power.

Impeachment is coming to Vermont, in a first since 1979.

States Attorney Lavoie runs a verbally abusive, misogynist workplace in which workers essential to our state's criminal justice system feel sick about coming to work. That's if an investigation and Lavoie's own admissions are to be believed.

Sheriff Grismore assaulted a man in his custody, as captured on video.

Due to this and to his subsequent lying about it, Grismore had a "Brady letter" filed on him in February. According to reporting, "The letters can be used by a defense attorney to question the credibility of an investigating officer in a criminal case. Prosecutors often will simply not pursue any more cases from an officer who has received a Brady letter."

Guess which States Attorney issued the letter? The same guy who explained why someone wasn't back yet from filing something this way: "She is a larger woman so it takes her longer to get places." He further clarified, "She is not small like you."

Both officials interact since they serve Franklin County.

I'm glad that the Legislature has a Constitutional role to play here in providing accountability to these powerful officials. The panel of seven Representatives will begin meeting soon to investigate begin the impeachment process. The House may be called back later in the year to take the next steps.

***
I'll be back with more updates on legislation passed at the end of the session, and what's ahead. Today, one more question from a resident.

In A challenge and an offer, I described how Vermont legislators are paid piem mileage, meals, and lodging expenses. Even though these payments are for reimbursement of expenses incurred on the job, the IRS considers the money taxable.

Or do they? A resident commented that, in their opinion, the money is not taxable and that I appear to be lying about it.

They also told me that I'm bad at math and that I'm profiting to the tune of $124 every time I drive to Montpelier. (On the mistaken that I'm only paying for gas. They seem to overlook how the IRS's standard mileage reimbursement rate covers all the very real expenses of driving such as insurance, wear-and-tear, tires, etc.)

Between all of this and a negative take on my comment that legislators have to utilize thrift to serve, the resident ends with name-calling.

"You snot nosed, entitled brat. There is just too much more of your nonsense to unpack and frankly, I'm busy. Your unrepentant spoiled persona is more than a body can stomach. You are an abomination."

That first part passes the fact check. I did pick up a sneeze on my last day in Montpelier.

I don't know if I can speak to the rest. Seems subjective.

But two things I were able to track down:

--a mistake in my arithmetic, so I posted a correction​
--an answer to the main accusation that I'm misrepresenting non-taxable income as taxable.

For the latter I did what any state employee can do -- I went and asked Human Relations.

Here's what H.R. told me:

In general, compensation is considered taxable income to the person who receives it, unless there is a specific exclusion. The federal Internal Revenue Code defines “income” very broadly. See, 26 U.S.C. § 61 (gross income is “all income from whatever source derived, including […] [c]ompensation for services, including fees, commissions, fringe benefits, and similar items […].”); Commissioner v. Glenshaw Glass, 348 U.S. 426, 431-33 (1955) (income is any accession to wealth). Adjusted gross income is gross income minus certain specified deductions. 26 U.S.C. § 62.

If income is not specifically deductible under the Internal Revenue Code, it is considered taxable, the amount must be included in reported income, and in the case of an employee, the employer must withhold appropriate taxes on those amounts. There is no specific deduction for legislator per diem payments.

These requirements are imposed at the federal level, but flow through to Vermont law for Vermont personal income tax purposes, because Vermont taxes income determined primarily by federal definitions. Taxable income in Vermont is defined as federal adjusted gross income with certain additions and subtractions. 32 V.S.A. § 5811(21). Vermont’s income tax withholding requirements are also predicated on federal withholding requirements. 32 V.S.A. § 5841(a).

I'm going to go with H.R. on this one. They do also withhold tax from what they pay us, so I don't have a lot of choice in the matter.

That's a bit about what your Windham-6 Rep is up to. What's up in your world?