Tag Archives: deduction cap

Shummy’s Choice

Oh, Anne Galloway, stop making me love you.

Shumlin has repeatedly objected to any changes to the state income tax code that could result in wealthy Vermonters paying more in taxes.

Hehehehe. Sounds like something I’d write, but it’s actually a fair summation of the Governor’s stand on taxes throughout his tenure in office. Which continued, big time, last night:

Late Friday night the House and Senate agreed to a tax package that Gov. Peter Shumlin has already said he doesn’t like and may in fact veto.

… The $30 million legislative tax package includes a cap on itemized income tax deductions. Under the plan, taxpayers can claim up to two times the standard deduction, or $25,000 for a household, for itemized deductions. Medical expenses and charitable donations are exempted. The change limits deductions for mortgage interest, property taxes, moving costs and other Schedule A itemized categories.

The plan includes a 3 percent alternative minimum tax for taxpayers who earn $150,000 or more.

Look, this isn’t a radical tax plan. It’d raise about $11 million a year, and it’s in line with what many states do. Vermont has very generous tax laws that provide plenty of breaks for top earners; the Legislature’s plan would take away some of those benefits.

I can almost hear the Governor talking about how this will hurt “hard-working Vermonters.”

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