Roll Call! House Increases Capital Gains Tax/Reduces Estate Tax (116-22), 2019

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PASSED
in the State House of Representatives
on March 29, 2019, by a vote of
116-22
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Purpose: The totality of the bill proposes to make numerous changes affecting the revenue of the State. The key provisions here include reducing the capital gains tax exclusion, increasing the estate tax exclusion. Other provisions include increasing downtown and village center and affordable housing tax credits and assistance from $2.4 million to $2.6 million, simplifying the lands gains tax, and clarifying the property transfer tax. 
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Analysis: In order to address the issue of wealthy taxpayers fleeing Vermont, this bill would increase the estate tax exclusion (moving higher the point where the tax kicks in) from $2.75 million to $4.25 million in January 2020, and to $5 million in January 2021, resulting in a substantial estate tax cut.  However, in order to backfill the lost revenue anticipated from the estate tax cut, the bill would also decrease the exemption for capital gains from 40% to 30%, and cap the exemption at $450,000. The former change positively impacts mostly wealthy citizens passing on assets to younger generations, the latter change negatively impacts mostly middle/working Vermonters who execute a one-time, large dollar sale of a home or business.
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Those voting YES support these changes in the belief that lowering the estate tax will keep wealthier Vermonters in state, which would have a positive impact on other revenue streams, such as the income tax and sales tax.
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Those voting NO believe that this is a cost shift of tax burden from mostly wealthy to mostly middle/working class Vermonters who rely on the one-time sale of a home or business to finance their retirement. This will also discourage entrepreneurs from starting businesses in Vermont if they know the value of the business they create will be severely reduced at sale by capital gains taxes.
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As Recorded in the House Journal, Friday, March 29, 2019: “Shall the bill pass? was decided in the affirmative. Yeas, 116. Nays, 22.” (Read the Journal, p. 721-723.)

How They Voted

Janet Ancel (D – Calais) – YES
Peter Anthony (D – Barre) –  YES
Sarita Austin (D – Colchester) –  YES
Robert Bancroft (R – Westford) –  YES
John Bartholomew (D – Hartland) –  YES
Lynn Batchelor (R – Derby) –  NO
Christopher Bates (D – Bennington) –  YES
Scott Beck (R – St. Johnsbury) –  YES
Matthew Birong (D – Vergennes) –  YES
Thomas Bock (D – Chester) – YES
Patrick Brennan (R – Colchester) – YES
Timothy Briglin (D – Thetford) – YES
Nelson Brownell (D – Pownal) – YES
Cynthia Browning (D – Arlington) – YES
Jessica Brumsted (D – Shelburne) – YES
Thomas Burditt (R – West Rutland) – YES
Mollie Burke (P – Brattleboro) – YES
Scott Campbell (D – St. Johnsbury) –  YES
William Canfield (R – Fair Haven) –  YES
James Carroll (D – Bennington) –  YES
Seth Chase (D – Colchester) – YES
Robin Chesnut-Tangerman (P – Middletown Springs) –  YES
Annmarie Christensen (D – Weathersfield) – YES
Kevin “Coach” Christie (D – Hartford) – YES
Brian Cina (P – Burlington) –  YES
Sara Coffey (D – Guilford) –  YES
Selene Colburn (P – Burlington) –  YES
Hal Colston (D – Winooski) –  YES
Peter Conlon (D – Cornwall) –  YES
Charles Conquest (D – Newbury) –  YES
Sarah Copeland-Hanzas (D – Bradford) –  YES
Timothy Corcoran (D – Bennington) –  YES
Mari Cordes (D/P – Lincoln) – ABSENT
Lawrence Cupoli (R – Rutland) – NO
Carl Demrow (D – Corinth) –  YES
Eileen Dickinson (R – St. Albans) – NO
Kari Dolan (D – Waitsfield) –  YES
Anne Donahue (R – Northfield) –  YES
Johannah Donovan (D – Burlington) –  YES
David Durfee (D – Shaftsbury) –  YES
Caleb Elder (D – Starksboro) –  YES
Alice Emmons (D – Springfield) –  YES
Peter Fagan (R – Rutland) –  YES
Charen Fegard (D – Berkshire) – YES
Martha Feltus (R – Lyndon) – YES
Robert Forguites (D – Springfield) – ABSENT
Marianna Gamache (R – Swanton) – NO
John Gannon (D – Wilmington) –  YES
Marcia Gardner (D – Richmond) – ABSENT
Dylan Giambatista (D – Essex) –  YES
Diana Gonzalez (P – Winooski) –  ABSENT
Kenneth Goslant (R – Northfield) –  YES
Maxine Grad (D – Moretown) – ABSENT
Rodney Graham (R – Williamstown) – NO
James Gregoire (R – Fairfield) – ABSENT
Sandy Haas (P – Rochester) –  YES
Lisa Hango (R – Birkshire) – NO
James Harrison (R – Chittenden) – NO
Nader Hashim (D – Dummerston) –  YES
Robert Helm (R – Fair Haven) –  YES
Mark Higley (R – Lowell) – NO
Matthew Hill (D – Wolcott) –  YES
Robert Hooper (D – Burlington) –  YES
Philip Hooper (D – Randolph) –  ABSENT
Mary Hooper (D – Montpelier) –  YES
Lori Houghton (D – Essex) –  YES
Mary Howard (D – Rutland) –  ABSENT
Kathleen James (D – Manchester) – ABSENT
Stephanie Jerome (D – Brandon) –  YES
Kimberly Jessup (D – Middlesex) –  YES
Benjamin Jickling (I – Randolph) –  YES
Mitzi Johnson (D – Grand Isle) – PRESIDING
John Killacky (D – S. Burlington) –  YES
Charles Kimbell (D – Woodstock) –  YES
Warren Kitzmiller (D – Montpelier) –  YES
Emilie Kornheiser (D – Brattleboro) –  YES

Jill Krowinski (D – Burlington) –  YES
Robert LaClair (R – Barre) – NO
Martin LaLonde (D – S. Burlington) –  YES
Diane Lanpher (D – Vergennes) –  YES
Paul Lefebvre (R – Newark) – NO
Felisha Leffler (R – Enosburgh) – NO
William Lippert (D – Hinesburg) – ABSENT
Emily Long (D – Newfane) –  YES
Terence Macaig (D – Williston) –  YES
Michael Marcotte (R – Coventry) –  YES
Marcia Martel (R – Waterford) –  YES
James Masland (D – Thetford) –  YES
Christopher Mattos (R – Milton) – ABSENT
Michael McCarthy (D – St. Albans) –  YES
Curtis McCormack (D – Burlington) –  YES
Patricia McCoy (R – Poultney) –  YES
James McCullough (D – Williston) –  YES
Francis McFaun (R – Barre) – NO
Leland Morgan (R – Milton) – NO
Mary Morrissey (R – Bennington) – NO
Michael Mrowicki (D – Putney) –  YES
Barbara Murphy (I – Fairfax) –  YES
Linda Myers (R – Essex) –  YES
Logan Nicoll (D – Ludlow) –  YES
Terry Norris (I – Shoreham) –  YES
William Notte (D – Rutland) –  YES
Daniel Noyes (D – Wolcott) –  YES
John O’Brien (D – Tunbridge) –  YES
Carol Ode (D – Burlington) –  YES
Jean O’Sullivan (D – Burlington) –  YES
Woodman Page (R – Newport) –  YES
Kelly Pajala (I – Londonderry) –  YES
John Palasik (R – Milton) – NO
Carolyn Partridge (D – Windham) –  YES
Avram Patt (D – Worcester) –  YES
David Potter (D – Clarendon) –  YES
Ann Pugh (D – S. Burlington) –  YES
Constance Quimby (R – Concord) – NO
Barbara Rachelson (D – Burlington) –  YES
Zachariah Ralph (P – Hartland) –  YES
Marybeth Redmond (D – Essex) –  YES
Lucy Rogers (D – Waterville) –  YES
Carl Rosenquist (R – Georgia) –  NO
Brian Savage (R – Swanton) –  NO
Robin Scheu (D – Middlebury) –  YES
Heidi Scheuermann (R – Stowe) –  YES
Patrick Seymour (R – Sutton) –  YES
Charles “Butch” Shaw (R – Pittsford) –  YES
Amy Sheldon (D – Middlebury) –  YES
Laura Sibilia (I – Dover) –  YES
Brian Smith (R – Derby) –  YES
Harvey Smith (R – New Haven) – NO
Trevor Squirrell (D – Underhill) –  YES
Thomas Stevens (D – Waterbury) –  YES
Vicki Strong (R – Albany) – NO
Linda Joy Sullivan (D – Burlington) –  YES
Mary Sullivan (D – Dorset) –  YES
Randall Szott (D – Barnard) –  YES
Curt Taylor (D – Colchester) –  YES
Thomas Terenzini (R – Rutland) – NO
George Till (D – Jericho) –  YES
Tristan Toleno (D – Brattleboro) –  YES
Catherine Toll (D – Danville) –  YES
Casey Toof (R – St. Albans) – NO
Maida Townsend (D – South) –  YES
Matthew Trieber (D – Rockingham) –  YES
Joseph “Chip” Troiano (D – Stannard) –  YES
Tommy Walz (D – Barre) –  YES
Kathryn Webb (D – Shelburne) –  YES
Rebecca White (D – Hartford) –  YES
Theresa Wood (D – Waterbury) –  YES
David Yacovone (D – Morristown) –  YES
Michael Yantachka (D – Charlotte) –  YES
Samuel Young (D – Greensboro) –  YES

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