(Host) Governor Jim Douglas says lawmakers need to cut deeper into the state budget to avoid new taxes.
The House and Senate are looking at about $24 million in new revenues to balance the state budget. The proposals include an income tax surcharge, closing a tax exemption on capital gains income, and so-called "sin" taxes on tobacco and alcohol.
But the governor said on Thursday that he’s opposed to any new taxes.
(Douglas) "The Senate proposed to tax what they deem to be sin. Frankly, what I think is a sin is all the tax increases that are being passed by the House and the Senate. That’s not possible at a time when Vermonters are struggling."
(Host) Senate President Peter Shumlin says the legislature has already made deep budget cuts. He told his colleagues that he is a reluctant supporter of the revenue measures, including adding a sales tax on clothing.
(Shumlin) "Nobody likes to raise taxes. There isn’t a tax that anybody likes. We are putting together this $24 million package, because we’ve made the judgment in the Appropriations Committee – and based on the vote yesterday – that we cannot balance this budget with out a combination of cuts and revenues."
(Host) The final form of the revenue package will be shaped by a House-Senate conference committee.