Income tax reduction plan revived, added to a budget bill
A proposed income tax relief bill which had passed the House, but got killed in the Senate, is alive again.
The bill would use half of the proceeds from the state Legacy fund to buy down state income taxes, eventually eliminating the tax. It has now been added as an amendment to the budget bill for the state Tax Commissioner.
The author of the original bill, and the amendment, said the plan is to get the Tax Commissioner’s budget into conference committee.
"I think the Senate kind of pre-determined it would not provide any tax relief," said Rep. Craig Headland (R-Montpelier).
Headland said the latest revenue forecast is stronger than anticipated when the session began.
"There are a lot of issues regarding spending on the Senate side," Headland said. "The House has rejected a lot of that."
Headland said he hopes a compromise can be reached with the Senate.
"The House wants to provide tax relief, and the Senate wants to spend," Headland said.
Senators who opposed the original bill have talked about the "three legged stool" of tax policy. They worry that taking Legacy Fund earnings would make the state too dependent on one industry.