Gov. Shumlin Comments on the Work of Blue Ribbon Tax Commission

Press Release

Gov. Peter Shumlin today thanked the members of Vermont's Blue Ribbon Tax Commission for developing a report outlining changes they believe would improve the state's tax system.

"The report provides an excellent foundation for an important conversation, which I welcome," Gov. Shumlin said.

The governor stated that he supports the concept of moving the state toward a simpler income tax system, as proposed by the Commission and currently used by the majority of states.

"That makes good sense, although we would want to be sure that any rate structure maintains progressivity and that adequate consideration is given to any unintended consequences of such a change," the Governor said.

He said he remains skeptical of any increased reliance on the sales tax, voicing concern about that tax's impact on low income Vermonters and businesses on the Connecticut River. However, he explained, there may be some room to broaden the base to lower rates in some limited instances, and he voiced support for efforts to capture the tax on sales occurring over the internet.

Speaking to another suggestion in the report, the Governor added, "It makes sense to regularly review holes in our taxes created by credits and exemptions to make sure they still fit with our policies."
"This administration will work with the Legislature to examine the specific principles, findings and recommendations," he said.

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