(Host) Business leaders and the governor are lobbying hard against a legislative proposal that they say would raise taxes.
Democrats want to delay for two years the expansion of a tax credit for manufacturers. That would generate about three-and-a-half million dollars for the state budget over those two years.
Governor Jim Douglas says the Legislature needs to send a positive message to businesses that the state supports them.
(Douglas) "Creating more jobs in Vermont, retaining the jobs that we have, obviously need to be our top priority as we come out of this recession. And I’m not going to stand by and see the General Assembly balance the budget on the backs of those who create jobs, in particular our farmers who are struggling to survive."
(Host) Democrats reject the argument that their proposal amounts to a tax increase. They say they’re simply trying to preserve spending on vital human services programs.
Senate Finance Committee Chairwoman Ann Cummings says businesses will still be able to claim a tax credit, but won’t be able to get an expanded credit.
(Cummings) "I can’t think of any other agency in the state or anyone that receives funding from the state who wouldn’t be just as pleased as punch to have level funding guaranteed for two years."
(Host) Business groups say allowing manufacturers to qualify for the enhanced tax credit now would stimulate the economy.
John Castaldo is executive director of the Barre Granite Association.
(Castaldo) "Increased global competition has hit the domestic manufacturers in Barre very hard. This year we’ve lost two companies. So taking this credit away from manufacturers is very short-sighted and further decreases their ability to compete."
(Host) The tax credit is one of the many issues that remain to be resolved before the Legislature can adjourn for the session.