Eliminate the sales tax

The Dec. 1 editorial took up the cause of local merchants who unfairly have to charge sales taxes while competing with online merchants who do not. The Sun Journal editorial board's solution to level the playing field is to compel online merchants, nationwide, to charge and pay sales tax to the state of Maine.

There is an alternative solution that would serve to correct more unfairness than just striking a blow for local merchants: Eliminate the sales tax.

The sales tax is, itself, unfair and burdensomely complex. It requires businessmen, already struggling, to perform unnecessary work to collect, document, report and forward tax payments to the state. It extracts revenue indiscriminately from the marginalized members of society — the unemployed, the already public-assistance dependent, the retirees and even children who count out their coins upon a glass counter while purchasing a candy bar.

Worse, some agencies within our community unfairly either do not have to pay or charge sales taxes. These include some of the ever-increasing numbers of nonprofit agencies and our newspapers. Some foods are taxed; some are not. There is no tax on caskets; there is on tombstones. The more than 100-page book explaining the tax states, "It is a major undertaking to administer a law that is subject to change each year and to educate the public in a timely manner to obtain compliance."

The elimination of the sales tax will make unnecessary all of those state employees who collect, administer and explain the complicated tax. It will free businesspeople from their responsibilities as tax collectors. The revenue lost can be recaptured through an increase in the income tax. This will not require additional state workers.

The biggest resistance to elimination of the sales tax is the lost opportunity to pilfer tourists' pockets. There is an alternative way to fleece the tourists: Increase the already existing gas tax. Maine citizens will pay more, but we'll have better roads. Tourists, for all those hours they spend in bumper-to-bumper traffic on Route 1, will contribute to Maine taxes.

Richard Sabine, Lewiston

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Displaying comments, from newest to oldest

hurricanium's picture

I don't know if eliminating

I don't know if eliminating sales tax is the answer. But..I would like a law passed that tells Cities and Towns they HAVE to use excise tax collected for road repairs and nothing else. That is what it was designed for and they are using it for the general fund. Maine would have fantastic roads and the State would not have to pick up the tab for those Towns who waisted it on something else.

Gil's picture

WWW.Fairtax.org Get it

WWW.Fairtax.org Get it passed at a federal level then locally. It's the only answer. The debate is over. The consensus states that it is the only way to go, so it must be true, just ask Al (who did not invent the Fair Tax, no matter what he says).
"Reasoning with a liberal is like trying to pick up a turd by the clean end. " Pirate

candiceanne's picture

Maybe Maine's Govenor and

Maybe Maine's Govenor and Legislature should take a look at New Hampshire. New Hampahire has no sales tax and no income tax yet they have great roads, good schools and a great business climate.

Pirate's picture
verified

Yeah, but their property

Yeah, but their property taxes are off the radar.

98civb18c's picture

also NH has outrages

also NH has outrages property tax.

Lil's picture
verified

NH charges 8% tax on meals

NH charges 8% tax on meals and lodging.
______________________

"A conservative is a man with two perfectly good legs who, however, has never learned to walk forward."
Franklin D. Roosevelt

Ernest's picture
verified

Don't worry about the sales

Don't worry about the sales tax. It is a tempory tax that will be going away soon. It was introduced to raise funds for something or rather in 1950 or threr abouts, so being as it's tempory it will be going away soon. Oh the rate at introduction was $.05 for those of you that are to young to remember.

jalbrecht1's picture
verified

Apparently Mr. Sabine runs a

Apparently Mr. Sabine runs a business and Pietar sells gas. As someone who does neither the most burdensome Maine tax is on property where the bottom 20% of wage earners pay 6.5% of their income in property taxes and the top 1% of wage earners pay 0.7%. So let's compromise. End all property and sales taxes. Adopt LD 1495 and then increase the refundable tax credits on the 40% of low and moderate income taxpayers. Jon Albrecht Dixfield

Pirate's picture
verified

What's LD1495

What's LD1495

Big Love's picture

LD 1495 is a tax reform bill

LD 1495 is a tax reform bill that was passed and signed last June. It will be very interesting to see how it effects middle income Mainers. The income tax rate drops from 8.5% to 6.5% on incomes up to $250,000, but the Maine itemized and standard deduction system is now going to be replaced with a "system of household credits", see http://www.maine.gov/spo/economics/docs/tax/SPO%20Tax%20Reform%20FAQs.pdf. The amount of the credit with be based on, among other things, the number of exemptions, or the type of filer. I can't wait to see how this nails middle income couples with fewer kids/exemptions, if they're not able to take the itemized deductions they were entitled to before. Could be a few surprised people owing money next year.

Pirate's picture
verified

Thanks, Big. Sounds like a

Thanks, Big. Sounds like a big screwing for the middle class to me.

Bucko's picture

Eliminating the sales tax

Eliminating the sales tax perhaps, but if you think for one minute that our roads will become better by raising the already gross levels of taxation on fuel, you are not thinking with a clear mind. Maine already has a near thirty cents-per-gallon tax and the roads are not only horrendous but, quite frankly, unacceptable.

Old Bill's picture

Are you really silly enough

Are you really silly enough to believe all the gas taxes are going toward maintaining roads and bridges? No, sir, I wouldn't be surpised if a lot of that tax revenue is being used to fund the Great Society of the Entitled that the libs in Augusta are trying to create here in Maine.
"The democracy will cease to exist when the government takes from those who would work and gives to those who would not." - Thomas Jefferson.

Pirate's picture
verified

That money is going to

That money is going to everything BUT roads and bridges, Bill.

"There are only two things in life that matter, but I forget what they are". Alfred E. Neumann

Old Bill's picture

Precisely my point,

Precisely my point, Pirate.
A Conservative is a Liberal who has gained Life Experience. - Me

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