The Heritage Foundation just released a report detailing the effects on Vermont’s economy if the 2001 and 2003 tax cuts are allowed to expire. According to the report, over a ten year period in Vermont, 1,625 jobs would be lost annually, households will lose nearly $5,000 in disposable income, and total receipts from individual income taxes would increase by a whopping $879 million.
“Senator Leahy has supported this tax increase from the beginning, even at a time when Vermonters are still losing their jobs and continue to struggle to provide for their families” explained Len Britton. “If more than 1,500 Vermonters a year will lose their jobs as a result of a tax increase, it’s safe to say that this issue effects more than the rich. It will be devastating to the middle class.”
Heritage’s report also found on a national level, investment in housing, business, and personal savings would all decline. Combine all of these statistics, and it is unlikely that economic recovery will arrive in the foreseeable future. A vote on whether or not to allow expiration of the tax cuts has been postponed by Congress.
You can view the report by clicking here.