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Friday, September 10, 2010
STATEHOUSE NOTES
Tax issue on June ballot
By Susan M. Cover scover@mainetoday.com
MaineToday Media State House Writer
AUGUSTA -- With all the attention focused on the primaries, it's easy to forget voters will make another important decision in June.
A people's veto of tax reform is on the ballot, too.
The question is this: "Do you want to reject the new law that lowers Maine's income tax and replaces that revenue by making changes to the sales tax?"
The campaign is beginning to take shape, with supporters of the law -- which makes them opponents of the repeal -- hiring Kay Rand and Larry Benoit of Bernstein Shur to run the campaign. On the other side, it's a two-pronged attack from Maine Republican Party Chairman Charlie Webster and Curtis Picard of the Maine Merchants Association.
The debate is about a law passed last year that lowers the top income tax rate, expands the sales tax to new goods and services and raises the meals and lodging tax. The idea was to rebalance the state's sources of revenue to help lessen the severity of budget swings and lower income taxes for most Mainers.
Supporters say an increase in the meals and lodging tax will affect tourists more than Mainers, thereby shifting some of the state's tax burden to visitors.
"We think we've got a really compelling case for the tax reform and tax relief law," Benoit said. "We're confident Maine voters will recognize the benefits of the new law."
Opponents say the law removes the current system of income tax exemptions and deductions, which will mean an increase in taxes for some. They also don't like the 5 percent sales tax expansion to car repairs, which they say will hurt those with lower incomes.
Webster sent letters to heating and gas technicians and hair stylists in recent weeks -- neither of whom are affected by the law -- to urge them to donate money to help kill it. He said although the sales tax expansions don't extend to those two businesses, he believes Democrats will eventually try to expand to those areas.
"It's terrible public policy that gives these liberals another way to take money from the working class," he said.
DNC chairman to headline convention
Democratic National Committee Chairman Tim Kaine will be the keynote speaker at the Maine Democratic Party Convention set for May 21 and 22, the party announced Friday.
Kaine, the former governor of Virginia, was the first statewide official from outside Illinois to back President Barack Obama, according to the party. The Maine convention will be in Lewiston this year.
"His attendance at the convention highlights the importance of Maine's upcoming gubernatorial election and our place on the national stage," said Maine Democratic Party Executive Director Mary Erin Casale, in a statement.
Registration for the convention is now open. Go to www.mainedems.org/convention for more information.
New payroll data now online
The Maine Heritage Policy Center recently updated its online database of state government information to include 2009 payroll data of state government and K-12 education.
The Web site -- MaineOpenGov.org -- lists state employee salaries, vendor payments, school payrolls and spending, and a way to track property tax growth in every Maine city and town.
The new information was added during Sunshine Week, a celebration of the importance of transparency in government.
Quality of place bill
Rep. Nancy Smith, D-Monmouth, says a new state law will help spark economic development by building on things such as natural resources, historic downtowns, arts and recreation.
The law establishes a 12-member Quality of Place Council that would establish standards and guidelines for "regional quality of place investment strategies."
"By designing a system to share information, rather than prescribing specific actions, the Legislature is truly setting the groundwork for building a stronger, sustainable economy in Maine," she said in a statement.
Gov. John Baldacci signed the bill into law last week.
Property tax help
Rep. Kathy Chase, R-Wells, sponsored successful legislation to help elderly Mainers stay in their homes even if they have trouble paying property taxes.
The law, which was signed by Gov. John Baldacci earlier this month, allows a municipality to establish a property tax deferral program for eligible senior citizens. Taxes could be deferred until death of the homeowner or sale of the property.
Municipalities would not be required to offer a program, but now have the option to establish one.
"This is a long-needed safety net for fixed-income folks who face high property taxes simply because their house has appreciated in value," Chase said in a statement.
Silver alert program
Another bill to help the elderly recently passed the House and Senate on preliminary votes.
Rep. Peggy Rotundo, D-Lewiston, sponsored a bill to establish a "Silver Alert" program that can be used for missing adults with dementia or developmental disabilities. It would be modeled after the Amber Alert system for abducted children.
The bill, L.D. 1610, will face more House and Senate votes this week.
Girls Day
The State House halls were packed with teenagers last week when 100 girls from across the state participated in the Maine Women's Policy Center's 14th Annual Girls' Day.
The girls debated legislation, worked with lobbyists and journalists, and met with Gov. John Baldacci, according to the center.
The event is held each March to commemorate Women's History Month.
EQME awards dinner
The Equality Maine Foundation's 26th Annual Awards Dinner will be held Saturday in Portland.
The group will be honoring several people for their work on the gay-marriage campaign and for other issues important to lesbian, gay, bisexual and transgender Mainers.
Sen. Dennis Damon, D-Trenton, the lead sponsor of the gay-marriage bill, will receive the Larry Connolly Award for legislative leadership.
The Religious Coalition for the Freedom to Marry and Catholics for Marriage Equality will be honored for their work.
Jimmy Lucibello of Ogunquit will receive the Cameron Duncan Award for service to the HIV/AIDS community.
And Out Front Awards that honor volunteer leadership will go to: Tom Reynolds and Ira Bittues of Lewiston; Ellie MacCallum of Windham; Carla Hopkins and Victoria Eleftheriou of Mount Vernon; Lucie Bauer and Annie Kiermaier of Rockport; David Cox of Orono; Meredith Hunt and Melissa Hamkins of Bowdoin and Tom Muise and Brian Dustin of Biddeford.
This week
On Monday, the Labor Committee will meet at 2 p.m. to continue discussion on a bill to prevent businesses from firing someone for using up to five sick days.
The House and Senate are scheduled to meet five days this week, with the House coming in at 9 a.m. and the Senate at 10 a.m.
Susan Cover -- 620-7015
scover@centralmaine.com
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4 COMMENTS
Aldin said...
The ballot question is misleading. It would not lower the income tax for all Mainers as the current lowest bracket is below the new proposed low bracket.
March 22, 2010 at 8:00 AM Report abuse
HoHum said...
It also does not tell the people that they will no longer be able to deduct any mortgage interest from owning a home. End result, is the Legislature has a shortfall and they want to bring in less money to the State??? Duh this will only bring in more money but is being spun to make us think we will be wealthier
March 22, 2010 at 9:22 AM Report abuse
Abetterplace said...
I don't trust my State or Federal Government, or this reporter. Yes,if not repealed this would lower the income tax bracket for all Mainers, that probably would be repealed next session due budget shortfalls. The folks that wait until last minutes of a Legislative session to bring gay marriage to Maine and tax beer wine and soda for the failed Dirigo Health program have proven to me they cannot be trusted. Also, in Cover's effort to make the Republican's look ignorant comes back to haunt her. After further investigation Heating Service would be taxed on all mobile homes (anything that can be traded for a newer model) is what the State Sales tax office has informed people. This appears to be levied at most economic disavadantaged people in Maine. Bad law! I would like to see the Sales tax laws left alone and Maine Income tax lowered but not tied to one another. Maine needs to elect people to the State Legislature who are trustworthy and know how to really budget money!
March 22, 2010 at 9:36 AM Report abuse
SiddFinch said...
They did not just lower the top income tax rate. The changed all tax brakets to 6.5%. The two lowest rates (2.0% & 4.5%) were raised to 6.5%. In addition the new 6.5% rate was applied to income that was not taxed before. The amount of the deductions and exemptions that are eliminated will be taxed while they were not taxed before. These increases were partially compensated by the use of tax credits. However, they decided in calculating those credits to give larger tax cuts to the upper incomes and to give large income tax increases to many income taxpayers who itemize. For a married couple who take the standard deduction their income tax cut is .29% of income at $50,000 but that cut rises to 1.47% of income at an income of $1 million. Seems their intent was to lower the tax rate which gives significant cuts to the wealthy and not spread the income tax cut proportionally. This leaves small cuts for the middle class which is offset by the increases in the sales tax.
March 22, 2010 at 2:12 PM Report abuse