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RGA Ad Glosses Over Scott’s Own Tax Record

FOR IMMEDIATE RELEASE

CONTACT:

Christina Amestoy, VDP Communications Director

camestoy@vtdemocrats.org

 

RGA Ad Glosses Over Scott’s Own Tax Record

September 28, 2016

 

Burlington, VT - Today the national Republican Governors Association went up on air with their first negative ad of the campaign - a misleading attack against Sue Minter. This out of touch cookie-cutter hit is straight from the national Republican playbook and attempts to tie Sue Minter to the same votes that Phil Scott took while in the Senate.

 

“This recent ad by Scott’s national Republican allies drastically skews Sue Minter’s record,” said Christina Amestoy, VDP spokesperson. “But what their ad conveniently leaves out is Phil Scott’s own record. While in the Senate, Scott voted for a 2% tax on the wholesale price of gasoline which added about three cents per gallon to the price of gas. And he supported legislation that increased the Vermont sales tax, costing Vermonters $680 million in new taxes.”

 

“The RGA’s attempt to gloss over their candidate’s own positions, which favor the wealthy and corporations over the middle-class, is Republican hypocrisy at its best. In Phil Scott and the national Republicans’ vocabulary, ‘affordability’ only applies to the wealthy and corporations, not middle-class Vermonters. Trickle-down economics may be a staple of the national Republican platform, but, in Vermont, we know that all Vermonters deserve better. The RGA can spend hundreds of thousands of dollars, but it’s going to take more than negative ads to cover up Scott’s record of raising taxes on working Vermonters.”

 

Check the facts:

 

Scott Voted in Favor of H.438 Which Called For A 2 Percent Tax On The Wholesale Price Of Gasoline And Diesel Fuel, Which Was Expected To Add About 3 Cents To The Cost Of A Gallon Of Gasoline. The Associated Press reported, “The Vermont Senate has passed a $455 million transportation spending bill [H.438] that calls for a 2 percent tax on the wholesale price of gasoline and diesel fuel. At current prices, the tax hike is expected to add about 3 cents to the cost of a gallon of gasoline. Backers say it's needed to help address chronic under-funding of Vermont's transportation budget. The gas tax will allow the state to issue revenue bonds for future transportation spending when it is no longer receiving the federal stimulus funds that will be available in fiscal 2010 and 2011. Vermont is slated to get about $140 million in federal stimulus funds for transportation in the next two years.” [Associated Press, 4/24/09]

 

Scott Voted in Favor of H.480 under Governor James Douglas Which Raised The Sales Tax From 5 Percent To 6 Percent. The Times Argus reported, “Vermont’s previous governor, Republican James Douglas, raised the sales tax, Shumlin said. ‘I want to point out it was the last governor who raised the sales tax from 5 percent to 6 percent,’ he said. ‘If you do the math on that that’s $680 million that Vermonters have paid in sales taxes since it was raised from 5 percent to 6 percent.’” [Times Argus, 9/18/16]

 

Scott Supported Lowering The Threshold For Middle Class Families To Receive Property Tax Relief, Which Would End Relief For Those Earning Between $75,000 & $90,000. According to the Addison County Independent, “Unlike his GOP primary opponent, Mark Snelling, who expressed opposition to income sensitivity for property taxes (which means those with lower incomes get a break on their taxes), Scott said, ‘I don’t think income sensitivity is a complete mistake, I just think it is overused.’  He supported the efforts by Gov. Jim Douglas to reduce income sensitivity threshold so that those earning more than $75,000 would not qualify for a property tax relief, rather than the current threshold of $90,000. Scott said it would save the state $20 million.” [Addison County Independent, 8/12/10]

 

Scott Voted in Favor of H.784 which Reduced Corporate Tax Rates For All Income Brackets, Including Reducing The Rate From 9.75% To 8.9% For Corporations With Income Greater Than $250,000. According to the VT Department of Taxes 2003-04 Biennial Report, “Corporate tax rates are reduced for taxable years beginning on or after January 1, 2006 from 7% to 6% ($0 to $10,000 income bracket), from 8.10% to 7% ($10,001 to $25,000 income bracket), 9.20% to 8.75% ($25,000 to $250,000 income bracket) and 9.75% to 8.9% (income of $250,001 and over). H. 784, sec. 3. The rates are further reduced for taxable years beginning on or after January 1, 2007 for corporations with Vermont net income of $25,001 and over, to 8.5%. H. 784, sec. 4.” [VT Department of Taxes, 2003-04 Biennial Report, accessed 9/20/16]

 

H.784 Further Reduced Corporate Tax Rates For Large Corporations To 8.5% Starting In 2007. According to the VT Department of Taxes 2003-04 Biennial Report, “Corporate tax rates are reduced for taxable years beginning on or after January 1, 2006 from 7% to 6% ($0 to $10,000 income bracket), from 8.10% to 7% ($10,001 to $25,000 income bracket), 9.20% to 8.75% ($25,000 to $250,000 income bracket) and 9.75% to 8.9% (income of $250,001 and over). H. 784, sec. 3. The rates are further reduced for taxable years beginning on or after January 1, 2007 for corporations with Vermont net income of $25,001 and over, to 8.5%. H. 784, sec. 4.” [VT Department of Taxes, 2003-04 Biennial Report, accessed 9/20/16]

 

Scott Criticized “Steep Corporate Taxes” In Vermont As Driving Residents Away. The Caledonian-Record reported, “[Scott] also talked about Vermont's substantial exportation of residents. The hardest hit age group is 25-45. ‘That's the working class,’ he said. ‘Those are the folks who pay taxes. How do we get them to stay? How do we get them to come to Vermont?’ High property taxes, expensive electricity, steep corporate taxes, and the income tax are barricades to not only retaining residents but attracting new people and businesses, he said.” [The Caledonian-Record, 1/28/15]

 

2010: Scott Supported A Massive Tax Cut For Large Corporations After It Was Requested By Companies Such As Green Mountain Coffee Roasters. Seven Days reported, “Tax policy has divided the candidates, too. Howard has attacked Scott for supporting the so-called ‘domestic production deduction,’ a federal tax credit that lets manufacturers deduct a portion of their production expenses on their state tax returns. Howard says the tax credit is bad on two fronts: Multistate companies can claim the deduction for out-of-state costs; and the credit does little to help struggling businesses, because only profitable ones have income to offset. He faults Scott for voting to increase the credit to 9 percent last year, even as lawmakers were slashing services for the needy. Scott argues that Howard is ‘blowing it out of proportion.’” [Seven Days, 9/29/10]

 

Scott Said That The $1.7 Million In Lost Revenue Was Not A Huge Sum In His Estimation. According to Seven Days, “Increasing the deduction to 9 percent is costing Vermont an additional $1.7 million in foregone revenue - not a huge sum, in Scott's estimation. He says homegrown companies such as Green Mountain Coffee Roasters and Cabot Creamery have requested it. ‘Those businesses that are trying to be profitable in the state of Vermont are ones that we should not forget about,’ Scott says. ‘This is just a small little step to give a sense that Vermont is open for business.’” [Seven Days, 9/29/10]

 

In His Economic Policy, Scott Proposes Restoring the 40% Exclusion for Capital Gains According to his economic plan, Scott would fight to restore the 40% exclusion for capital gains to reverse the “negative effect” the current $2,500 cap has. According to the JFO, the capital gain exclusions is overwhelmingly beneficial to those making over $200,000 a year, and, when the 40% exclusion was reapplied to a designated set of sources, Vermont lost out on $27.5 million taxes between 2011 and 2013. (Phil Scott Economic Plan) (JFO Capital Gains, 4/21/15)

 

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