This commentary is by Tom Pelham, formerly finance commissioner in the Dean administration, tax commissioner in the Douglas administration, a state representative elected as an independent and who served on the Appropriations Committee.
[H]ere’s an example of how shoddy and manipulative Vermont politics has become.
In defending gubernatorial candidate Sue Minter, Christina Amestoy from the Vermont Democratic Party issued a press release on Sept. 28 accusing Phil Scott of favoring the “wealthy and corporations over the middle class.”
Amestoy twice offers as evidence Scott’s favorable vote in 2004 for H.784. H.784 was crafted during my tenure as tax commissioner and proposed to the Legislature by Gov. Jim Douglas in his 2004 State of the State address. Douglas said:
“I also propose reducing the corporate income tax rate on employers to make them more competitive and to help them grow our economy and create good jobs. Vermont’s top corporate income tax bracket is currently fifth highest in the nation. Our high rates handicap the state’s ability to recruit employers and represent a significant competitive disadvantage for homegrown Vermont companies. To make Vermont more competitive, strengthen our recruitment efforts and level the playing field, I am proposing that we reduce our corporate tax rates across the board an average of 14 percent.”
“This reduction will be phased in starting in 2006. With this change, Vermont’s top corporate income tax rate will drop from fifth highest to 16th in the nation. These lower rates will be accomplished by closing loopholes in our tax code that allow some multi-state corporations to redirect profits to other states to avoid declaring them in Vermont. As a result, these huge companies pay only a minimum $250 tax while our homegrown Vermont businesses, particularly our small businesses, pick up the rest of the tab.”
H.784 was so well received that a conference committee was not necessary to resolve differences between the House and Senate, as there were none.
“These few multi-state corporations utilizing income-shifting strategies to avoid paying their fair share will see their taxes rise, while the typical Vermont employer will see its taxes drop significantly.”
Gov. Douglas’ proposal was well received across the board. H.784 passed the House on a voice vote and the Senate by a 28-0 roll call, with Sens. Welch and Dunne and every other Democrat in attendance voting favorably along with Sen. Scott. At its final passage, there is not a record of any Democrat or Republican opposing H.784. H.784 was so well received that a conference committee was not necessary to resolve differences between the House and Senate, as there were none.
The Legislature’s Statement of Intent for H.784 reads as follows:
“Sec. 1. STATEMENT OF INTENT
“In recognition of the fact that corporate business is increasingly conducted on a national and international basis, it is the intent of the general assembly to adopt a unitary combined system of income tax reporting for corporations, and as an integral part of this proposal, to lower the corporate income tax rates. Vermont’s separate accounting system is inadequate to measure accurately the income of a corporation with non-Vermont affiliates and creates tax disadvantages for Vermont corporations which compete with multistate and multinational corporations doing business in Vermont. It is the intent of the general assembly, in adopting a unitary combined reporting system, to put all corporations doing business in Vermont on an equal income tax footing, and with the revenue from the expanded and more accurate tax base, to lower Vermont’s corporate income tax rates.”
So Christina Amestoy, relative to H.784, there was no difference between Scott’s position and that of the entire Democratic House and Senate caucuses. Given these facts, it appears that either you don’t know what you are talking about or, having brought your Washington, D.C., political skills back to Vermont, are trying to hoodwink voters regarding Phil Scott’s voting record.
Either way, it would be appropriate for you to apologize to Vermont’s voters and to candidate Scott for your misleading presentation of H.784.
