Governor scolds legislators for raising taxes

Gov. Jim Douglas continued to scold senators who voted April 23 to follow the lead of the House and pass a 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.

"Unfortunately, many legislators don't seem to realize that by increasing taxes every year on job creators, Vermont's economy is less competitive," Douglas said. "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 Vermont State Legislature increased taxes on Vermonters by $21 million. They added 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.

"Instead of rolling back taxes, the Legislature is intent on piling higher taxes on employers and working families," Douglas added.

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