Impact of corporate tax proposal on IBM unknown

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(Host) Governor Jim Douglas says he’s not sure how his new tax equity proposal will affect IBM, the state’s largest private sector employer. Douglas unveiled a tax reform plan in his State of the State address that includes a provision to tax multi-state corporations that try to redirect profits from Vermont to their out of state corporate headquarters. Douglas wants to use new revenue generated from this tax to allow the state to reduce its corporate income tax rate for all businesses.

Speaking last night on VPR’s Switchboard program, the governor said he doesn’t know if the proposal will have a negative impact on IBM:

(Douglas) “It had several losing quarters over the last year so I don’t know if it had any taxable income in the recent past. Obviously it’s had profitable years in former years and I just don’t know what impact it might have. I of course wanted to consider this without information about any particular taxpayer because that’s not information that’s available, and I think all Vermonters will understand the fairness of this proposal.”

(Host) Douglas says the state is working hard to help IBM retain its 6,000 workers at its Essex Junction facility. As part of this effort, the governor says his administration is trying to lower energy costs and reduce property tax burdens for the company.

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