The Vermont legislature's budget containing a tax on digital goods hit a wall last weekend after Gov. Jim Douglas (R) promised to veto the measure.  The bill contained a whopping $1.1 billion in tax increases, including applying the state's sales tax to music, movie, book, and ringtone downloads.

The $4.5 billion budget also increased the gas tax, capital gains tax, death tax, alcohol beverage tax, and tobacco tax.

Vermont's legislature will return before the July 1 fiscal year begins to work on a new budget agreement or try to override the Governor.  The bill already passed the strongly Democrat controlled Senate 23-0.  It also passed the House 91-52, just shy of the necessary two-thirds vote to override Gov. Douglas.

CLICK HERE to write your legislators in Vermont and tell them to oppose the etax!

(photo by spamboy)