Vermont Gov. Jim Douglas criticized senators April 23 who voted to follow the lead of the House and pass a big 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 April 23.
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 Dealer.com 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."