By Guy Page
Thanks in part to the 2017 Trump federal tax reform, Vermont state corporate income tax (CIT) receipts are up $38 million over last year.
The CIT for Fiscal Year 2019 (July 2018 – June 2019) totaled $134 million, up 39% from last year’s $96 million, according to the “Comparative Statement of Revenues” issued by the State of Vermont and published today on the website of Vermont Business Magazine.
Vermont’s CIT receipt revenue growth tracks a similar increase is federal CIT revenue, which is a direct result of President Trump’s tax reform feature of “repatriation,” a policy explained in the 10/18/2018 Headliners column:
Guy Page is affiliated with the Vermont Energy Partnership, the Vermont Alliance for Ethical Healthcare, and Physicians, Families & Friends for a Better Vermont.
“Mindful that tax cuts could raise the deficit, Pres. Trump insisted on a deficit-reducing policy called “repatriation:” U.S. companies with overseas subsidiaries must “repatriate” (return to the U.S.) taxable income stashed away in tax-advantaged countries. And the money has indeed come rushing home: $300 billion was repatriated to the United States in the first quarter of 2018 alone, the U.S. Federal Reserve Board says. What does repatriation mean for Vermont state revenue? Vermont companies paying federal CIT on repatriation also pay more Vermont CIT: $15.5 million more through the first three quarters of 2018, according to a Vermont Joint Fiscal Office (JFO) report.”
Vermont 2019 Personal Income Tax revenues also grew: 5.2% to $875 million, for a total gain of about $44 million. The state’s liquor, wine and beverage taxes, and fees also posted single-digit gains. Vermont however did see decreased revenue in the transportation (in part due to electric cars which pay no gas tax.) The budget surplus will help the State of Vermont pay down its pension deficit, among other pressing needs.
Repatriation isn’t the only local benefit from the 2017 federal tax cuts. As reported September 6 in Vermont State House Headliners, 18 large Vermont employers gave employees bonuses, raises and new benefits as a direct result of the tax cuts, John Kartch of Americans for Tax Reform reports. Both Vermont Gas and Green Mountain Power rebated 100% of their federal corporate income tax savings to ratepayers and customers, resulting in substantially lower energy prices.
Of course the 2017 tax reform also meant significant federal income tax savings for Vermonters – an estimated $2000/year for families earning $80,000. As noted by Headliners last October:
“Repatriation isn’t the only local benefit from the 2017 federal tax cuts. As reported September 6 in Vermont State House Headliners, 18 large Vermont employers gave employees bonuses, raises and new benefits as a direct result of the tax cuts, John Kartch of Americans for Tax Reform reports. Both Vermont Gas and Green Mountain Power rebated 100% of their federal corporate income tax savings to ratepayers and customers, resulting in substantially lower energy prices.”
Statehouse Headliners is intended primarily to educate, not advocate. It is e-mailed to an ever-growing list of interested Vermonters, public officials and media. Guy Page is affiliated with the Vermont Energy Partnership; the Vermont Alliance for Ethical Healthcare; and Physicians, Families and Friends for a Better Vermont.
Ken—are you really dreaming— perish that thought— dems only spend.
Let’s see if ” Vermont’s Legislators ” agree where the funds came from, they won’t and
we surely know they had nothing to do with it, even our RINO Governor will not step up.
The Truth will set you free, But a great economy, low unemployment, will win you an election !!
The “ususal suspects” in Montpelier boast that VT is doing great and “personal” income taxes are up, proof VT is doing great under all Dem policies. But I sense it is not true.Personal taxes paid to VT come three ways. Earned income taxes (i.e. salaries). Then Dividends and Interest. Then Capital Gains taxes. ALL are reported on the VT “income” tax filing. VT has only 25k to 30k who make taxable “salaries” over $100k ( and they pay 65% of all income taxes to VT). Trump’s economic & Tax plans produced a 10,000 point rise in the market. Which means large “capital gains” taxes and increasing dividends, all free & no risk to VT. If markets stagnate or go down, no more huge Capital Gains taxes come to VT coffers. for free. If I am right, thepositive growth in VT Personal taxes are not caused by Democrats expanding job/economic growth (none) – thus salary taxes , but “gifts” to VT in large capital gains taxes – likely “made & paid” for by more conservative residents? I think it likely that VT’s large incomes taxes are thanks to one thing. The 25k to 30k who have a lot of stock market capital gains, dividends & interest and they are the ones paying the vast majority of all VT “income” taxes?. But,what If they/we leave VT (as I just did for Arizona))… or stock markets go way down, where does that leave VT? VT will be “in the red” big time? Yup 🙂
The folks in Montpelier seem to have lost their collective voices in praising our President for this wind fall. Heaven forbid if states tax receipts declined as a result of the tax cuts. You’d hear screaming all the way out to the wood shed.
All this cash does not come into the state coffers because of actions by our legislators, it was our leaderships action in Washington that resulted in this major increase in dollars!! Let’s hope our legislators use this money to pay down the deficit in the state pension fund!!
No, they will probably raise taxes to do that.