Republican lawmakers Friday threw their weight behind the budget Gov. Phil Scott laid out this week, applauding proposals focused on reversing Vermont’s struggling workforce and population trends.
Speaking to reporters at a Statehouse press conference, GOP leaders also signaled an eagerness to collaborate with Democrats, after the last two legislative sessions saw prolonged and bitter budget showdowns between members of both parties.
“We have an opportunity here to join forces with our colleagues on the other side of the aisle to address real problems Vermonters face every day and not be continuously labeled as ‘The Party of No,'” said Senate Minority Leader Joe Benning, R-Caledonia.
“In fact, we would like to take what has traditionally been the concept of a Vermont Republican as somebody who says ‘No, because,’ and move it into the area of ‘Yes, if,'” he said.
While Democrats have taken issue with how some of Scott’s proposals would be funded, the governor’s budget focused largely on initiatives that have been priorities for lawmakers on both sides of the aisle.
It would invest $7 million in additional child care subsidies, about $1 million in improving rural access to broadband, and 1.5 million in incentives for electric vehicles. It also isolates a new ongoing source of funding for clean water initiatives: the estate tax.
“We’re glad to see his budget proposal will make investments to make Vermont an attractive place to live work raise a family and do business,” said House Minority Leader Patty McCoy R-Poultney.
“As the governor correctly noted, the solution isn’t to pass onerous taxes Vermonters can’t afford, instead it is to increase the number of taxpayers here,” she said.
For the first time in his tenure, Scott, in his budget address, proposed raising new taxes and fees — about $20 million worth.
Republicans defended the governor’s pivot on taxes and fees Friday, arguing Scott is setting out to “modernize” the state’s tax structure, not raise taxes on Vermonters.
The governor’s budget includes an additional $7 million in sales tax the Scott administration hopes to reap from online marketplaces like E-Bay and Amazon, $2 million in additional rooms and meals taxes from online booking companies, and a new $1 million levy on e-cigarettes.
“We’re not actually expanding broad-based taxes, we are modernizing our tax structure so that brick and mortar stores in St. Johnsbury that are now currently empty…are on a level field with online purchases,” Benning said.
Republicans also hailed Scott’s proposal for the estate tax, which involves using $8 million of its revenues for clean water funding, and reforming the levy over time to make it less burdensome for residents with high estate values. Scott wants to increase the estate tax exemption from $2.75 million to $5.75 million over four years.
“By using estate tax reform and committing that money, not only are we making Vermont a more attractive place for people to live from a tax standpoint,” said Rep. Scott Beck, R-St. Johnsbury.
“But we’re also committing those dollars to what all Vermonters enjoy, which is a clean environment and clean water,” he added.
