Changes to Maine's property tax relief programs catch many off guard

LEWISTON — Changes to a state rent and property tax relief program aimed at helping low- and middle-income individuals and families are catching many who benefited from the program off guard.

Many are no longer eligible for the programs and others are learning that their rebates have been steeply cut.

About 75,000 Maine households will no longer be eligible for rebates under the so-called circuit-breaker program, according to a state analysis of the changes made earlier this year by the Legislature. Income limits were decreased from $87,000 per year for households and $65,000 a year for individuals to $40,000 for all.

Property owners must pay at least 10 percent of their adjusted gross income in property taxes to be eligible for rebates. The previous rate was 4 percent.

Renters must pay at least 25 percent of their incomes for housing to be eligible, the previous rate was 20 percent. 

The new maximum rebate is fixed at $300 for those under age 70 and at $400 for those older than 70. The previous rebate amount was capped at $1,600.

"They've just gutted the program; it's unbelievable what they've done to it," said Richard Smith, a Lewiston property taxpayer who is retired. "I think they are just one step away from doing away with it altogether."

Smith said his income is fixed at about $40,000 a year and he pays about $3,000 a year in property taxes. 

In 2012, he received a rebate of $550, but under the new formula he will be ineligible for a rebate because he doesn't pay 10 percent of his income in property taxes. Smith would have to pay $4,000 in taxes to be eligible for the program and even then his rebate, because he's over 70, would be no more than $400.

Applications for the rebates, previously filed in August, will now be filed with a person's state income taxes in the beginning of the year.

The changes saved the state budget $17.8 million and are a compromise between the Legislature and Gov. Paul LePage, whose proposal would have kept the maximum rebate amount the same but would have even more dramatically reduced the numbers eligible to receive the credit.

LePage's proposal would have saved the state $31 million and would have limited rebates to residents 65 and older.

Democratic lawmakers involved in the final state budget negotiations said they compromised with Republicans to save another popular property tax relief program, the Homestead Exemption. That program allows a discounted tax rate on a primary residence, by exempting the first $10,000 of a home's value from taxes. The state reimburses local municipalities for the lost revenue.

Democrats say they realize the new limits on the rebate programs are too strict and said they intend to offer legislation that will change that while increasing maximum rebate amounts.

Rep. Adam Goode, D-Bangor, House chairman of the Legislature's Taxation Committee, said at least one bill carried over for 2014 could become a vehicle for restoring the programs.

"Democrats very much support the circuit breaker and its goals of helping middle-income, lower-income property taxpayers," Goode said. "We were very clear on the Taxation Committee that the shifts both in the cuts to revenue-sharing and in the cuts to circuit breaker and Homestead Exemption were very tough pills to swallow."

Rep. Peggy Rotundo, D-Lewiston, House chairwoman of the Legislature's budget-writing Appropriations Committee said Republicans refused to roll back previously passed state income tax cuts worth about $400 million. She said the result was reductions in state spending on tax-relief programs.

"Because Republicans refused to give on those income tax breaks for the very wealthy, we ended up paying for them by taking away property-tax relief programs," Rotundo said. "We were told by our Republican colleagues that (the income-tax cuts) were non-negotiable. They refused to budge on those."

Rotundo said Democrats feared being unable to pass a state budget, so they gave up on trying to roll back the income-tax breaks.

She said that concession allowed Democrats to protect against an elimination of state revenue-sharing with local governments, which would have had a dramatic impact on local property taxes.

"We couldn't get everything we wanted; we had to compromise," Rotundo said. "But we will go back and keep pushing to make sure that working Mainers and people on fixed incomes get that property-tax relief they need. To use those to pay for tax breaks for the wealthy is just very unfair."

Jodi Quintero, spokeswoman for House Democrats and Speaker Mark Eves, D-North Berwick, said Eves has a bill that will come up for consideration in 2014 that looks to address the issues around property tax relief, expanding eligibility for relief programs and increasing rebate amounts.

But it seems unlikely Republicans will go along with those proposals.

David Sorensen, a spokesman for House Republicans, said it was disingenuous for Democrats to say they were dissatisfied with the budget compromise they brokered and which gained broad bipartisan support.

"The state doesn't collect property taxes, local government does," Sorensen said. "And the only way we are going to see true property-tax relief is to rein in local spending."

Sorensen said local government spending over the past 20 years has increased at a rate twice as fast as state spending. "It's not up to us," Sorensen said. "It is up to the local governments to get their spending under control."

He said property taxes in Maine have increased by 123 percent over the past 20 years.

"The bottom line is, the spending has got to stop and when we are talking about property taxes, that's spending at the local level," Sorensen said.

sthistle@sunjournal.com

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Comments

Ken Perry's picture

Only way to lower property taxes is

to lower LOCAL spending, each town has the ability to spend or save as much as the people allow them. You vote local for a new school, or new police car or fire truck etc. and your taxes have to cover what the Town spends. My town it seems has a bottomless check book, but that is the Towns peoples fault for voting and passing everything without questioning anything. So if your taxes are to high do not bitch about the Gov. bitch about your neighbors and town govt. that you and your neighbors elected.

MARK GRAVEL's picture

Maine property taxes are just

Maine property taxes are just too damn high.

A decade ago I lived in California. My home value was 4x the value of an equivalent home in Maine. My property tax bill was 1/2 that of the Maine property.

Don't you Maine's regret not capping property taxes when you had the chance?

Person who farts in church, sits in their own pew.

In the context of property taxes, people who don't vote to cap taxes, have to pay them - your pew.

Eric  LeBlanc's picture

Property taxes are artificially bloated

Property taxes are artificially bloated in most small towns in Maine. Way too much money is spent on big fat dumb and lazy cops who did little more than hide behind structures hoping to pull some poor sap over for doing 6 or 7 mph over the limit. It's time for the citizens of small towns to stand up and send these clowns packing. Stop taking money away from older citizens on fixed incomes to pay for wasteful and unneeded services. Don't take money from a 70 year old woman to pay for ski slopes and community recreation centers. It's time to draw a line in the sand with these useless selectmen who choose to squander cash by the barrel at the townspeople's expense. Stop the spending or prepare for a house cleaning followed by a good old fashioned ass kicking. Enough is enough.

MARK GRAVEL's picture

Where do we line up to

Where do we line up to administer kicking activities?

RONALD RIML's picture

We don't have a Police Dept. in Boothbay

and there are a lot of Locals who like it that was 'Just Fine' for any number of reasons.......

Lord knows we could use one, and I wouldn't mind footing my share of the bill.

MARK GRAVEL's picture

Ronald, Perhaps you should

Ronald,

Perhaps you should give some reasons why a police force is necessity in Boothbay bedsides wanting coffee buddies to exchange stories with?

RONALD RIML's picture

Move to Boothbay and find out.

and find out.

MARK GRAVEL's picture

Wait, Boothbay does have a

Wait, Boothbay does have a police department - http://www.boothbayharbor.org/index.php?option=com_content&view=section&...

Ronald is lying again.

RONALD RIML's picture

I said Boothbay - not Boothbay Harbor

Two entirely different Towns there, Magellan.

http://www.townofboothbay.org/

MARK GRAVEL's picture

Yes, been away too long. I

Yes, been away too long. I stand corrected.

RONALD RIML's picture

But not chastised.

.

RONALD RIML's picture

#1 'Garden' in the U.S. according to Trip Advisor

Coastal Maine Botanical Garden - http://www.mainegardens.org/ - Boothbay, ME

MARK GRAVEL's picture

I investigated the link.

I investigated the link. Looks nice, but I'm not sure how interesting it will be in October when I visit.

MARK GRAVEL's picture

Other than crazy old white

Other than crazy old white haired liberals running around the town undressed, I have not hear of much crime in Boothbay.

Perhaps a few examples would help the readers understand - if you got any?

RONALD RIML's picture

The readers around here understand....

That's why some don't want police; a lot of OUI and drugs on the Boothbay Peninsula, and people have their favorite sins. The most efficient way to do it would be to incorporate the Boothbay Harbor PD into a Boothbay Region Law Enforcement Agency. There are actually a lot of businesses in the Town of Boothbay. There is also the Town of Southport on Southport Island, which is accessed from a bridge from Boothbay Harbor. A lot of seasonal homes - many upscale ones - real wealth - prone to residential burglaries. Lincoln Country Sheriff's Office is spread pretty thin. Though it makes strategic sense - the politics just won't bear it

Mike Lachance's picture

Ridding the "relief program" is a start...

What this does is expose how utterly insane the property taxes are in Maine. Enough with the "credits". Enough with the loopholes, rebates, etc etc etc. Quite simply, property taxes are too high in Maine and removing this credit exposes the issue clearly.

The solution is to not play the class warfare card; giving certain groups discounts, credits, rebates, etc. does nothing but pit the poor against the not-so-poor, (otherwise labeled "the rich")... No more credits, high income or low, private citizen or big corporation (or small business).

We have the means to solve our revenue problem here in Maine and it doesn't involve raising property taxes, relying on such insanely high property taxes to pay the state's bills is a prescription for a case of "economic lyme desease".

This year I will no longer receive this "credit" and while that means I will be paying more in property taxes (which I am not happy about), in my opinion the problem isn't that the credit was taken away, but that the credit was there in the first place to mask the truth.

Steve  Dosh's picture

Mainers, 13:00 hst ?

Mainers, 13:00 hst ? ƒlyday
Hindsight is usually 20\20 , Mike .
We live in Hawai'i and don't \/ote for these jokers •
• /s Steve

Jeffrey Le Doux's picture

Property Tax Circuit Breaker

My wife and I worked for many years under social security (over 40 each) and because we worked for the State for 13 and 10 years respectively we lost 49% of our social security. This has left us in between a rock an a hard place. We have many medical expenses along with the increased cost of fuel and food (inflation is real). That circuit breaker might have been a bit of a help, but we probably won't qualify any more.
The democrats are our friends, HA HA HA. So are the republicans, HA Ha
Ha.
We need a clean sweep.
Insanity is doing the same thing (electing the same people) and expecting a different result!!

MARK GRAVEL's picture

There is one more item that

There is one more item that we need.

We need our citizens not to be so dependent on the government. Demand less services, and government requires less revenue, the citizens have more dollars in the pocket.

Moreover, you knew you would lose SS benefits working for the state, yet you took the job. Food for thought.

Jeffrey Le Doux's picture

There is one more item that...

When I took the job the situation with Social Security had not happened. That came to be after 1993 when I started with the D.E.P. We have the Federal Govt to thank for "double dipping" and cutting our earned and paid for Social Security. That is not a "benefit" since we contributed to it, and if it had been handled as the "Federal Insurance Company of America" (F.I.C.A. Tax) there would be no problem, but since 1951 it has been plundered by the Feds for whatever purpose they deemed necessary starting with the Berlin Airlift. We paid in, but will never get back what we did pay in. Wake up MGR and smell the facts.
Our current government is insane in my humble opinion, and they do not know how to rein in their thirst for our money!!!!

Jeffrey Le Doux's picture

There is one more item that...

When I took the job the situation with Social Security had not happened. That came to be after 1993 when I started with the D.E.P. We have the Federal Govt to thank for "double dipping" and cutting our earned and paid for Social Security. That is not a "benefit" since we contributed to it, and if it had been handled as the "Federal Insurance Company of America" (F.I.C.A. Tax) there would be not problem, but since 1951 it has been plundered by the Feds for whatever purpose they deemed necessary starting with the Berlin Airlift. We paid in, but will never get back what we did pay in. Wake up MGR and smell the facts.
Our current government is insane in my humble opinion, and they do not know how to rein in their thirst for our money!!!!

MARK GRAVEL's picture

“Our current government is

“Our current government is insane in my humble opinion, and they do not know how to rein in their thirst for our money!!!!”
I’m on your side on this one. That said, when you are being screwed, get up and move.

Otherwise, just stand there with your hands on your ankles and spell “run” three times fast.

 's picture

STINKS TO HIGH HEAVEN

Now that they have dipped into us SENIORS pockets they brag about a surplus. I used that renters refund to buy my first 100 gals. of K-1 to start the cool season. Going to depend on GOD to keep me warm this winter as I can`t depend on the stability of GOVT. officials to do the right thing and LOVE their fellow man. A few days ago there was an article telling us they had a 50 million surplus, now WE know how they did that. and Thats That

MARK GRAVEL's picture

Why do we depend on the

Why do we depend on the government in the first place. They always let you down, such an abusive relationship.

Ken Perry's picture

Oh Well

Owning a home is a privilege, not an entitlement, if someone can not afford the property taxes then their families should step up and help them not the State. They can take a reverse mortgage or sell and rent. Those limits are very high to be receiving help. Then reading some other comments about the Republicans is a joke, our Gov. is trying to make the state act responsible for its bills and revenue, Dems. just want to tax and spend and never submit a plan on who will pay the bills.
So either get a part time or full time job, or sell and move in with family or rent. Selling ones home is not the end of the world, sell it buy something more affordable and get on with life.

MARK GRAVEL's picture

Can you really ever own a

Can you really ever own a home? Stop paying your property tax and see who long you keep what you think you own.

My mortgage payment ended after 10years, but I need to keep paying for the property.... hmm, do I really own it?

PAUL ST JEAN's picture

Well stated.

Well stated.

Alicia Mitchell's picture

fed up

why doesn t the LePage give up his paycheck and the rest of them in augusta. Or better yet let them come and live on what we do and see if they would make it or die. I think most of us all know that answer if they would make it or not.
and for those of you who think someone gets help they get it all you are sadly mistaken. I have 3 special needs kids i am there care taker. Every service and little bit they get i had to fight for. So all you high class rich people who complain. I would be happy to make a switch for the day with ya and you come do what i have to do and live on what we do.

 's picture

free money

Where the heck do these people think this money is coming from.It's just other free give out from the state of maine. we have to cut things back and get more of other programs that they could work and get of their butts.if they want their phones and tats, drinks (beers) they should work.

MARK GRAVEL's picture

Where does money come from,

Where does money come from, well Obama of course ;-) It is free, right?

FRANK EARLEY's picture

Where the heck do you get off??????????

Where the heck do you get off with such a broad statement regarding the "Circuit Breaker". Ya maybe it's free money, maybe it also contains some of the tax revenue we all pay to the State every year. That money doesn't just magically appear in Augusta, it comes from someplace.
You also might want to back down on the go to work bit, if you want your beer's and phones and tats(?). Whenever I hear that line about getting off my butt and get a job, I want to strangle someone. I worked very hard my whole life, from 16 to 47years of age. I worked one career left that went back to school went into a totally different career, not to mention all the little jobs I had all along the way. I loved working. Now I can't. Not because I enjoy sitting around the house all day drinking my beer's and doing whatever with my tats(?) while talking on the phone.
When your forced into early retirement, especially long before you are ready to retire, you tend to feel a little screwed. Unless of course your a rejected one term Governor with a pension that just keeps on giving. The rest of us though have to learn to adjust. Make due with what we got, and go after whatever we need.
That "Circuit Breaker" law was a huge help to myself, and thousands of other no good lay-abouts. LePage and the Republican Party, taking away that little bit of food and heating oil, hurts. It's bad enough they deny thousands of low income family's other life saving benefits they could be getting(health care), but they also enjoy taking away things we already have grown accustomed to.
Go ahead, call me greedy, I probably deserve it. Free money or not, Lepage and the Republicans had no right to deny us anything. Until he starts treating the wealthy the same as the poor, he has no right collecting a pay check let alone anything else.........

MARK GRAVEL's picture

Perhaps the State should just

Perhaps the State should just lower property taxes for all. Realty is starting to slow sink in to Americans. To keep the gravy train rolling, taxes will go up on all...

Stop eating gravy, it will be better for the waistline and the wallet.

PAUL ST JEAN's picture

The circuit breaker program

The circuit breaker program is funded by property taxes. If one isn't paying property taxes they are not contributing to it. Renters are not paying into it; their landlords are, which should not entitle renters to get rent rebates.

FRANK EARLEY's picture

You need to stop taking advise from the Parot.....

If I'm paying rent on a place to live, I doubt the land owner is paying the property tax out of his pocket. In fact I had one landlord who actually asked me for a loan to pay his property taxes. Anyone paying rent is paying a portion of the property taxes, as well as the land lords rent if he lives in the building, and all sorts of other things I really don't care about. Everyone paying rent contributes to the overall income of the property. That being said, I am just as entitled as the next guy.
I still am pretty pissed off at how cavalier LePage is about taking away benefits. I'm just glad to see I'm not alone in my anger.

MARK GRAVEL's picture

If your name is not on the

If your name is not on the check to the State, then you are technically not paying property taxes.

PAUL ST JEAN's picture

I might be swayed to your way

I might be swayed to your way of thinking on this one.........but not today.

FRANK EARLEY's picture

I think all the so called requirement rules are bass-ackward....

The first thing I did, back when I got sick, and was able to think strait, was head right down to DHS, for a little old fashioned derogatory treatment. I figured what the hell, I've worked all my life, I paid taxes, I should get some of this help I hear everyone else getting from the State. I should have known, but like I said, I had just been diagnosed with an incurable disease, that requires strong pain treatment. I guess I wasn't thinking strait. What I did get is a lesson in dysfunction, from the poster child for stupidity. I should have known from the previous twenty year battle I had with them. It amazes me how hard they make it for you to do the right thing.
I figured I was out of work permanently, no income to speak of, and huge medical needs. I figured I had to qualify for something, food stamps heating assistance, housing? Not on this trip I wasn't. Nor any future trips as I was so rudely made aware of. You see I made the terrible mistake of working hard all my adult life, paid taxes, paid all my bills, therefore There was nothing they could do. If I had never held a job, or worked for next to nothing, maybe a little help. They checked my previous earnings, and based on that, I was not qualified. I made to much in the past three or six months of employment.
I think this method of determining eligibility is stupid, Now is the time I'm not making any money. If I had no income a month ago, I would have been here then. It's kind of like finding your house on fire. You call the fire department. How would you feel if the chief told you that because your house was not on fire a month ago, we can't help you now. Call us back in a month or so, maybe we can find a way to help then. Thats basically the treatment I received that day. I never looked back. This little rental rebate, as I like to call it, was my satisfaction check from the State, Now I won't even be getting that any more. God, you have to love this administration running thing up in Augusta............

MARK GRAVEL's picture

Perhaps we should avoid

Perhaps we should avoid contradictory statements. "I worked all my live". Your live is not over yet, you are not working for the reasons you have shared. Hence, you have not worked all your live.

Not that is a problem, it is a contradictory statement.

FRANK EARLEY's picture

Good point......

Your right, One little word was left out of that statement, the word "yet". Hopefully I still have a lot of life left in me, but I guess my working days are over. So I guess I'll just avoid the subject all together........

MARK GRAVEL's picture

We all wish you a long life.

We all wish you a long life. After all, you do bring a certain color and aroma to the on-line opinion section.

PAUL ST JEAN's picture

P.S. What are you talking

P.S.
What are you talking about? The parrot, a flaming lib is on your side. The problem I have with the rental part of the circuit breaker is that I paid rent for 30 some odd years and never qualified for any of that stuff because I "made too much money", which for some reason, never seemed to be of sufficient abundance. I still can't wrap my mind around the concept of a guy earning $85K a year getting state assistance to help pay his rent. That goes down really dry.

RONALD RIML's picture

Renters ARE paying into it.

Landlords merely channel a portion of the rent receipts into the property taxes. At least that's how I did it on the two rental properties I owned. Had the the properties sat empty, then I would have had to reach into my pocket to pay the taxes.

Capice??

MARK GRAVEL's picture

Ronald, I just checked, it is

Ronald,

I just checked, it is my name, not the renter's name, on the check used to pay my rental property taxes.

RONALD RIML's picture

And you got that $$$ where???

where???

MARK GRAVEL's picture

From sweat equity.

From sweat equity.

PAUL ST JEAN's picture

I get that, but renters

I get that, but renters should still not qualify for it. The landlord pays the taxes, he should reap the benefits of the circuit breaker, but then, if he owns property, he probably doesn't meet the income guidelines for eligibility.
Capice....
Is that a Chevy or a Buick? 0O:-)

RONALD RIML's picture

The Landlord reaps the benefits of

- Rent profits and earning capital (property)

MARK GRAVEL's picture

Landlord also take on the

Landlord also take on the risk. For example, I bought a rental unit in 2005 just to see property values tumble in 2008. That is just one of the risks we landlords take.

Gail Labelle's picture

Changes to Maine's property tax relief programs

Although I return after a long stay in the south, It boggles my mind how The State of Maine is still struggling with taxes, property or otherwise. Someone in Augusta really needs to take some training lessons from South Carolina and other states that seem to keep their property and other taxes low. Example: 2004 my Maine property taxes were around $3500 a year. Dropped to $750.00 a year so it can be done. Just saying!!!.

RONALD RIML's picture

Just Saying?

(You get what you pay for)

RONALD RIML's picture

Do you reckon they have to heat those schools as much in SC

as they do in Maine??? Figure that into the property tax equation.

Teacher salaries are pretty close; starting salaries avg $31,685 in SC, and $31,580 in Maine; while avg salaries are $47,050 in SC, and $47,182 in Maine. Statistically that's dead on.

See Teacher Salaries by State - The School Budget is the largest chunk on my tax bill.

But South Carolina has a lower Cost of Living Index than Maine - theirs is 96 - Maine's is 110.5 - this for 1st Quarter 2013. All in all though, I'd rather live in Maine than South Carolina. SC has a violent crime rate of 571.9 per 100,000 population. Maine's is only 123.2 per 100,000 - it's a lot safer state!!! SC should probably be spending more $$$ on public safety. We don't need to be taking any lessons from them!

MARK GRAVEL's picture

Perhaps Maine has lower crime

Perhaps Maine has lower crime because it is too damn cold. Everyone is locked inside to keep warm.

Yes it does cost more to heat Maine schools. To finish the half completed picture that you started to paint, the state of Maine spends $6,212 per year per capita. SC only spends $4,389 per year per capita. So does it cost nearly $2000 per year per person to heat schools? I smell halibut from boothbay.

http://kff.org/other/state-indicator/per-capita-state-spending/

RONALD RIML's picture

More domestic violence when you keep folks trapped inside.

But what would you know......

MARK GRAVEL's picture

Show me Maine statistics that

Show me Maine statistics that back your assertion.

PAUL ST JEAN's picture

I wonder what percentage of

I wonder what percentage of SC's budget goes toward welfare programs as opposed to Maine's. I'll bet Public Works budgets in SC are much lower, also. They don't have all that snowplowing to do.

MARK GRAVEL's picture

Anwser!

Maine - $1,888.90 per year per capita spending on welfare.

SC - $1,216.40 per year per capita spending on welfare.

Maine spends over 50% more on welfare compared to SC.

http://ppinys.org/reports/jtf/2008/WelfareSpending2008.html

RONALD RIML's picture

Nice to hear we treat our Folks better.

Might be a reason South Carolinians resort to so much crime.

MARK GRAVEL's picture

Well, more money does not

Well, more money does not necessarily mean better treatment. I would want to know how much of that per capita spending is eaten up in administration costs.

A true artist like myself paints complete pictures in full color. A mere painter uses limited colors over a wide area. A painter is not necessarily an artist.

Steve  Dosh's picture

Paul ? 7.2% ? . .about

Paul ? 7.2% ?
. .about the same as the number of tea baggers around /s Steve :D

PAUL ST JEAN's picture

If you are referring to libs

If you are referring to libs and dems the correct term is douche bags.

Betty Davies's picture

An excellent way to destroy Maine, one town at a time

The Republican war on Mainers continues. While the wealthy enjoy their tax breaks, everyday working people affected by this policy will be able to purchase fewer goods and services in their own and neighboring towns.

Many businesses will lay off workers, and many--recognizing Mainers' ever-increasing desperation--will reduce wages, resulting in even fewer people able to buy things.

MARK GRAVEL's picture

Here we go again crying

Here we go again crying republican war on Mainers. Perhaps the problem can be found in the mirror.

Betty Davies's picture

Mirrors...

Take a look in your own.

MARK GRAVEL's picture

I do every day and that

I do every day and that individual wants lower taxes and smaller government.

RONALD RIML's picture

Gravel looks Greed in the mirror.....

Greed looks back

MARK GRAVEL's picture

Looks like an A

Looks like an A personality!

By the way, what does greed look like visually?

RONALD RIML's picture

Take another look in the Mirror

Any mirror - You can also see stupidity.

MARK GRAVEL's picture

Something smells like rotten

Something smells like rotten halibut.
1. Greed looks like me.
2. My looks are unique, and no one else looks like me.
3. Therefore, there are no other greedy people?

Since there others who are greedy, then your premise cannot be true. Greed does not look like me.

Proven false through contradiction.

Steve  Dosh's picture

Changes to Maine's property tax relief programs catch many . . .

David ? August 8, 2013 4:04
. ...
"The bottom line is, the spending has got to stop and when we are talking about property taxes, that's spending at the local level," Sorensen said.. .
Have you ever heard of the multiplier effect Dave ?
Macroeconomics 1 0 1 ?
It goes like this . .for every one dollar spent at the local level i has a 4x - 7x effect on your local level . Lemme give you an example . Let's say someone drops a wrench on a submarine ( accidentally or on purpose ) that starts a fire in a nuclear sub in Kittery ME
That causes US$0.5Billion worth of damage
When the U S Navy spends $US1/2B to fix the thing it has a US $2B positive effect on your local economy
Capiché ?
Same goes for bridge repairs across the Piscataqua . . . .
ref : http://www.sunjournal.com/news/maine/2013/03/11/nh-man-be-sentenced-frid...
Four to seven times is the effect . . ..
hth ? /s , Steve

MARK GRAVEL's picture

How in the hell does that

How in the hell does that math work?

Local government spends $1.00 in Legislation is like spending $4.00 in Legislation? Wow, that is better than the perpetual motion machine.

Using that logic, the Federal Government spends 25% GDP, so what does that do? Wow, that would mean we have exponential economic growth. When do we get to see that?

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