Governor Douglas criticizes Senate vote on tax increase

first_img### AttachmentSize H_0792_Shumlin_Letter_042110.pdf402 KB Governor Douglas criticized senators who today voted to follow the lead of the House and pass a harmful tax increase on manufacturers, farmers, contractors and others by not extending the pass through domestic production deduction as expected. The domestic production deduction is meant to protect and grow domestic manufacturing and other productive activities. An amendment to prevent the tax increase failed by a vote of 17 to 12 on the Senate floor this afternoon.Governor Douglas issued the following statement opposing the tax increase: Yesterday we learned that IBM would be adding new jobs in Essex. Today we learned that was making a commitment to Vermont to create up to 300 jobs in Burlington in the coming years. Both announcements are encouraging signs of recovery. But they also remind us of the need to work diligently to create and attract jobs for Vermonters in a competitive economic environment. Unfortunately, many legislators don t seem to realize that by increasing taxes every year on job creators Vermont s economy is less competitive making it more difficult to attract the kind of jobs that propel our recovery. Just as we are seeing green shoots in the economy, some legislators are bent on job-killing measures and new taxes that threaten our fragile recovery. Last year the Legislature increased taxes on Vermonters by $21 million over my objection. They imposed higher taxes by capping the deductibility of state taxes, changing how capital gains were taxed, increasing the estate tax, increasing the liquor tax, and imposing a digital download tax, among others, to prop up unsustainable levels of spending last year. We cannot forget that employers will see an increased burden whether or not there is a fix to the UI trust fund and that property taxes continue to increase every year until real reforms are made in the education fund. For those reasons and because of the need to help spur our economic recovery, I ve called for the sunset of last year s capital gains and estate tax increases, as well as reforms to lower property taxes. But instead of rolling back taxes, the Legislature is intent on piling higher taxes on employers and working families. There has been much talk about the need to make job creation our top priority and that Vermonters are taxed out. But actions speak much louder than words. I will continue to do everything I can to create jobs and ease the heavy burden of taxation on Vermont families and businesses. It is simply unacceptable to raise taxes even higher and jeopardize the progress we are making toward recovery.Attached is a letter the Governor sent to Senator Shumlin on Wednesday explaining the Governor s concerns with the Legislature s approach to budget and taxes for fiscal years 2011 and 2012.Source: Governor’s office. 4.23.2010last_img