Something old could be new again .Democrats are breaking out of the Douglas budgets cuts only mindset and finding alternatives .This one is particularly interesting because of it’s pedigree.Douglas keeps repeating that raising taxes during a recession will make it deeper and longer yet in 1991 this in combination with other actions was the bi-partisan form of dealing with that financial crisis. I don’t know if Douglas actually supported this action back in 1991 or not.It would be an interesting turn of events for Douglas to have to veto this if it moves forward and comes to that .
MONTPELIER – A Democratic lawmaker wants to revive the income tax increase that the late Republican Gov. Richard Snelling persuaded lawmakers to enact to help the state cope with a 1991 financial crisis.
Rep. Michael Fisher’s call for consideration of new revenues to help solve the state’s financial crisis comes as the current governor and Legislature have learned that revenues declined precipitously in January – down about $13 million more than economists projected just a few weeks ago.
The plan Fisher resurrected would raise about $40 million, he said. “I’m calling it the Snelling surcharge because it’s not really my idea,” Fisher of Lincoln said. “The bill is really identical to what Snelling did in 1991.”
The legislation would impose a 3-percent surcharge on incomes between $46,700 and $171,950, 6 percent on incomes between $171,500 and $307,050 and 9 percent above $307,050. Fisher offered examples of the tax that would be added: An individual making $46,700 would pay an extra $50. A couple with the same income would pay $66. An individual earning $70,000 would pay $92.Governor’s Douglas spokesperson responds “For lawmakers to try to apply an 18-year-old patch over a current crisis is really ignoring the uniqueness of this economic downturn,” Dennise Casey said. “It is irresponsible to ask more from Vermonters when they are earning less – especially when we know there are areas of state government that regardless of the economic downturn are growing at unsustainable levels.”