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Scott’s Tax Breaks? Not for the Middle-Class

FOR IMMEDIATE RELEASE

CONTACT:

Christina Amestoy, VDP Communications Director

camestoy@vtdemocrats.org

 

Scott’s Tax Breaks? Not for the Middle-Class

September 29, 2016

 

Burlington, VT  Phil Scott is getting help from his national Republican allies to cover up his own record on taxes. Scott’s voting history and his campaign promises have focused on helping out the wealthy and corporations while ignoring the needs of middle-class Vermonters.

 

“In his entire 15,000 word economic plan, Phil Scott completely ignores Vermont’s middle-class,” said Christina Amestoy, VDP spokesperson. "His plan offers handouts to millionaires and big corporations, while leaving the middle class in the cold."

“Like his national Republican allies, Phil is more than happy to promise tax breaks to corporations or to reduce the tax burden on capital gains, but fails to fight for Vermont families. What’s more, his inability to answer how he would pay for these corporate tax breaks begs the question, what will middle-class Vermonters have to sacrifice to pay for these handouts?”

 

“National Republican trickle-down economics may having a following in Washington, but Vermonters deserve better than a candidate who puts business interests before middle-class interests.“

 

Check the facts:

In His Original 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)

 

Scott on Restoring Film Production Credit. In his economic plan, Phil Scott listed “restoring film production tax credits” as part of his “pro-growth” policies. These type of tax credits have recently been blamed for losing Massachusetts over $68 million in 2012 alone (Boston.com, 3/6/15). Phil Scott declared Massachusetts was benefiting from these credits and called the credit a no loss situation. (Phil Scott Economic Plan)

 

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]

 

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