Vote 'No' on Question 1 to save tax reform

If Question 1, the repeal of tax reform, passes Tuesday, it will represent a victory for  demagoguery over dispassionate truth.

And you will likely be cheated out of paying lower taxes for years to come.

The people urging a "Yes on One" vote Tuesday have, in their TV ads, desperately tried to beat a complex issue into a cynical, emotional sound bite — ordinary people getting "short-changed" by the wealthy.

"If Question 1 doesn't pass on June 8, it means another government bailout for the wealthy and Maine people get shortchanged ... again," according to a TV ad sponsored by the Maine Association of Realtors.

This is, by nearly every credible analysis of tax reform, a complete falsehood.

According to Maine Revenue Services, 88 percent of Mainers would see a reduction in their overall tax burden under tax reform.

A Maine Center for Economic Policy analysis found that Mainers who earn the least stand to gain the most.

For instance, 98.2 percent of those earning less than $12,244 per year would pay lower taxes.

Meanwhile, only 66.9 percent of those earning more than $107,000 would see their taxes decrease.

The people most likely not to see a tax break are those who have high incomes and are making large mortgage payments on very expensive homes. In other words, they are not low- to moderate-income Mainers.

So, how is it possible that nearly 90 percent of Mainers would pay lower taxes under tax reform?

Because out-of-staters would pay more in the form of higher lodging and meal taxes.

"Exporting the sales and income taxes to nonresidents will help put upward of $40 million back into the wallets and pocketbooks of Mainers," according to the MCEP.

Even with these increases, however, Maine's sales tax on most goods would remain at 5 percent, which is lower than every other New England state except New Hampshire, which has no sales tax.

Maine's meal and lodging tax, meanwhile, would be slightly lower than in New Hampshire and Vermont, and slightly higher than in Massachusetts and Rhode Island.

Yes, Mainers eat out, and they would also pay sales tax on a variety of other goods and services, such as dry cleaning and the labor portion of auto repairs.

Even so, Maine Revenue Services predicts that these increases would be more than offset by reducing the income tax rate from 8.5 percent to 6.5 percent.

In the end, you should ask one question: Will I come out ahead?

You can determine that by visiting this website: tinyurl.com/mainetax.

Or, you can accept the word of Maine Revenue Services. Or the Maine Center for Economic Policy.

Or, you can believe the Portland, Bangor, Lewiston and Maine state chambers of commerce, which all urge a "no" vote.

The truth is out there — it's just not in the misleading TV ads.

Vote "no" on the repeal of tax reform, Question 1, on Tuesday.

editorialboard@sunjournal.com

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Displaying comments, from newest to oldest

MaineHiker's picture

We now know............

shit or brains

tron's picture

if their on such a fixed income

what are they doing going to racetracks, pool halls, paintball courses, taking limousine rides, balloon rides, going whitewater rafting, and using diaper services? Seems they really don't have reason to complain, do you?

r.landry's picture
verified

vote yes on 1

retired people,living on fixed income, cant afford 100 new taxes.

MaineHiker's picture

Question 2 is deceitfully worded.

Question 2 is deceitfully worded. Unless you drink lots of industrial strength Mafia Kool-Aid, you probably noticed that the question is worded to imply that electricity from wind power can lessen our dependence on oil in some way, (and from any source, apparently) when windenergy cannot do so in any way whatsoever. ++++ Question 2 should be worded, “Do you favor a $26,500,000 bond issue to be used by industrial wind-turbine marketers, industrialists and crooked politicians to leverage Maine people into believing the big-wind-lie? An additional $24,500,000 will be leveraged from your taxes and called monies from federal and other funds.

veritas's picture
verified

How about referencing your claim there...

Where in the law is your claim that the credits for interest on mrtgage and other items phase out after three years?

Here is the link to the law: http://www.mainelegislature.org/legis/bills/bills_124th/chapters/PUBLIC3...

Now quote for us the Section # the does what you claim.

The reason it's missing from the discussion is because it is not there.

mrnpchick's picture
verified

The other part that is

The other part that is missing from the discussion is that the credits for interest on the mortgage and other items will be phased out after 3 yrs. That is when everyone will take a huge hit in taxes. Yes on 1!

joe public's picture

Pirate did they clean up tron

Pirate did they clean up tron ????

Pirate's picture
verified

Nice to see they cleaned up

Nice to see they cleaned up that junk peddler's ad.

joe public's picture

If the Governor wants it it

If the Governor wants it it must be good .............I mean look how well off the State is after 2terms !!! The insurance bill failed the RSU is about to lets just think about all the good things ALL demos and Republicans have done for us ! Now for any post by TRON who cares all he does is stur the crap !! He is on welfare never leaves the house when the suns out and his only purpose is to get all of you going! He is a NONISSUE !

Jo's picture

Vote NO

It's time the working class gets a break on income taxes.
Most of the new "sales taxes" are on frivolties. I do take exception to car repairs being on the list, however. Vehicles are a necessity to those who work.
And yes, I go to the movies, use dry cleaners, and eat out. But I also work, and am more concerned with keeping $$ in my paycheck. That way, I have a choice where my tax dollars go. Going to the movies, or overnighting in Boothbay is a choice...

Pirate's picture
verified

Take your junk and go peddle

Take your junk and go peddle it on Lisbon St.

Paris Patriot's picture

Go take

a long walk off the short pier on the pirate ship in your head.

Paris Patriot's picture

And...

let's not forget that the republicans in our state won't even vote to approve paying 5 CENTS on a can of soda because it's called a "tax". Seriously, you're an embarrassment to yourself and your state!

Paris Patriot's picture

I can see from reading the above comments

...the right wingers are scared and embarrassed again that the lefties in the state came up with another great idea! How long before the right wing wackos will take credit for this measure (if No On 1 passes) when things start looking up for our state? Not long I bet!

I'm voting No On 1 because it's the right thing to do!

Pirate's picture
verified

Have you ever tried to engage

Have you ever tried to engage in two level thinking? You'd see all very clearly if you tried it.

tron's picture

there is no argument, simply

half truths and opinions. And sorry, but 800 million was cut from the budget, no matter what YOU think. They were precipatated by a revenue shortfall, but the shortfall could have been address many ways, and the Democrats, without any help from the opposition, chose to make drastic cuts in social programs and NONE in business welfare programs, but you're still not satisfied. This proves you do not have the state's best interests in mind, just your own selfish ones.

BobStone's picture
verified

Tron, check your numbers...you are wrong

I just looked at the Office of Fiscal and Program Review's website.

The General Fund budget for FY 2009 was $2,854,763,148. For FY 2010, it is $2,864,581,668. That is an INCREASE of $10.8 million and change. So, where is the "cut?"

I think you are confusing a "cut" with the structural gap in the budget. The structural gap is a projection of anticipated revenues and anticipated expenditures for the next Fiscal Year. The actual spending budget is as presented above.

You have to stop drinking the Democrats Kool-Aid.

thinkingman's picture

Okay heres a simple argument

Okay heres a simple argument - the democrats in Augusta created this bill right? Now lets figure out who created the mess we are in right here in maine...oh wait, its 40 years of democratic control in the legislature...so...do you really want the folks who have been on a 40 year uncontrolled spending spree to be telling you this is good for you....yeah right! How exactly will the folks who got us into this mess be the ones to get us out....800 Million in spending cuts, sorry Jal not even close and the only thing cut was when the overinflated budget hit reality with less revenues they were FORCED to make cuts!

Pirate's picture
verified

All I know is that Baldacci

All I know is that Baldacci supports it and that tells me all I need to know about it. It's the Ted Kennedy thing; If Teddy's for it, be assured, it sucks.

skippy's picture
verified

Forget the political rhetoric

Forget the political rhetoric of LEFT or RIGHT; this bill will increase the number of items all pay taxes on and with a little inflation that we are certain to have esp. after the stimulus plans of Washington DC, all will pay more in taxes. This fiasco was dreamed up by the same people in power that are breaking taxpayers backs with taxes and FEES. Do not trust them or take what they say as gospel. They (politicians) have been known to err in their favor when talking to citizens. Repeal this increase base of taxes. If voters do not they will find themselves making the magic figure where they pay more taxes due to inflation. Note that this bill is not indexed to inflation. Remember when coffee was a dime? I am not that old yet I remember coffee and a coke were a nickel. That is how inflation is and will forevever continue and ends up making us all pay higher taxes. Taxes are based on percentage and when inflation creeps up, your percentage goes up.

momof4's picture

and then

the municipalities bear the burden. The municipalities cut spending and you all complain about services being cut, as you sit in your apartments and don't pay property taxes. Show me where they cut spending by 800 million dollars. can't believe you guys buy into that crap.

jalbrecht1's picture
verified

Unconstitutional?

Hardly. The Maine Tax Cut Bill is according to the Wall Street Journal a "miracle" because in a recession Maine's political leadership found the political will to improve the revenue system without a tax increase inspite of the fact that more than 35 states have had to increase taxes. Opposition to this tax cut was organized by the Republican Party and financed by huge out-of-state special interests like the realators purely for partisan advantage. That it will benefit 95% of Mainers meant nothing to them. Given their outrageous, radical, anti-constitutional and anti-government platform and their partisan games with the Tax Cut Bill no Republican is qualified for any elective office.

jalbrecht1's picture
verified

Hypocrisy on the Right

They tell you they are for smaller goverment and lower taxes. But when you cut spending by $800,000,000 and cut taxes by $55,000,000 well that's just bad. What do they do when they are in charge. More than double the federal deficit. Not once but 2 out of the 3 times in recent history that they have been in charge. Republicans want smaller government and lower taxes when Democrats are in charge and bigger government and greater deficits when they are in charge (gotta' pay back the donors).

Pirate's picture
verified

And, not an ounce of

And, not an ounce of hypocrisy on the left, right, jalb? (The parrot just said, "which is it, left or right?)

thinkingman's picture

Major flaws

3 Major Flaws to the bill
1. It does NOTHING to control or reduce spending (yeah, that one is a political view, I confess)
2. It is NOT indexed for inflation, and the MRS refuses to show what percentage of people will still make out better in 3-5 years (this could have been addressed and allowed for a broader base of suppport for the bill). A person could pay $100 less in taxes in year one but that same individual will be break even in year 3 and pay more in tax by year 5.
3. The new law taxes out of staters differently on their income earned in Maine, and that is unconstitutional under Maine Constitution which requires everyone be taxed in the same fashion.
I'll stay away from the rest as it is nothing but a personal viewpoint of a poorly contructed bill that needs repair and as we cannot repair, I'll vote YES to stop it and hope the legislature will make popints to fix.

momof4's picture

I agree

with ALL of you except tron (surprise). And you can bet that, if the repeal fails, taxes will remain at the level they are now, except we'll be stuck with 102 more...

veritas's picture
verified

Actually the same sales tax

With 102 less loopholes for Republicans....

Pirate's picture
verified

Sadly, the absence of the 102

Sadly, the absence of the 102 loopholes will affect ALL of us won't it?

tron's picture

the majority of Mainers who make

over $350k are small businesses, which is something this bill is trying to help. Even though your selfish claim during the Bush tax cuts for the wealthy, was they pay it they deserve the most benefit. NOW that a plan is proposed to help everyone, YOU complain the wealthy get all the breaks. It's hard to keep up with your changing attitudes.

The income tax rate NOW should be at 6.5% but it isn't because of this referendum. If this thing passes it will be at 8.5% and that is a 30% jump. Can't lie that one through your rump.

And you're claiming that the Maine Heritage Policy Center, what a misnomer, is NOT a rabid right wing tool? Just look at what it did yesterday, suing to prevent people from expressing their views on initiatives. I call that not only right wing, but communist.

Pirate's picture
verified

Why, Tron, do you care about

Why, Tron, do you care about wheter the rate is 6.5% or 8.5%. Do you even pay taxes?

tron's picture

more than

you believe, but I've become accustomed to the implied accusation you and your clan make all the time..

Pirate's picture
verified

Communist? It ought to be

Communist? It ought to be spelled l-i-b-e-r-a-l

veritas's picture
verified

As Nazis were good Conservatives...

As Nazis were good Conservatives...

Pirate's picture
verified

The jury, I believe, is still

The jury, I believe, is still out on that one.

BobStone's picture
verified

What the editorial writer didn't tell us...

is that about 4,500 Mainers who make in excess of $350,000 a year will see over $40 million of the tax "relief" while the remaining 700,000 of us will split the balance of the "relief" (around $20 million). Those are the facts, the inconvenient truth, to quote a great American.

The writer also completely ignores the negative impacts on taxpayers in years three and beyond.

The writer doesn't talk about the ad being run by the pro-tax liberals that says income taxes will go up 30% if the question passes (Yes prevails). That is pure poppycock and the Sun-Journal knows it. 8.5% will still be 8.5%.

I would also note (see my comment on the Metzler article on bonds) that, while the Sun-Journal is quick to label the Maine Heritage Policy Center as "conservative", it fails to label the Maine Center for Economic Policy as "liberal" which it most assuredly is. How about equal labeling down there in the Sun-Journal newsroom?

I am beginning to think that the Sun-Journal has an agenda.

mtnview's picture

Big Goverment

This is nothing more than Big Goverment trying to dig into our pockets even more. If anybody cant see this then vote "NO"........! Those who uderstand economics can see this would work, but not the way that our "friends" are saying it will. Has anybody looked at the bond issues. Lets raise taxes because we cant make ends meet now and in the next breath they want us to ok millions in bonds????????????????? To create more JOBS.. Hello people we need to run goverment like a buisness. Checks and balances. You can only have what you can afford. If you cant afford it than make cuts dont increase taxes because you have spent it before it even passes....We have been Supressed enough. It is time to make a statment about what we will accept and what we wont......I am Voting "YES"..The Sun-Journal does seem to have an agenda. Thanks bobstone.Just my 2 cents.

Gary52's picture
verified

If question 1 does not pass,

If question 1 does not pass, how long will it take before the legislature decides to raise the income tax rate back up because we need the money? Two or three years. I'm also sure they won't waste any time adding new services to the list of taxable items, either. I am voting yes on Q-1.

tron's picture

what a stupid comment

how long will it take the legislature to raise any taxes should the need for additional revenue occur? You forget that our state must have a balanced budget, by law, and the legislature can raise extra revenue no matter what happens to this proposal.

Mainah49's picture

Ahhh

so you do see the truth. The state will raise the income tax rate, and will have an expanded sales tax base as well. So you see, we will pay more, they are just lieing to us as to how they will get it.

If you have a $2000.00 auto repair bill, it will result in a $100.00 tax for the service in addition to the tax on any parts sold.

tron's picture

a two thousand dollar labor charge is quite steep,

none the less, if you make 20K a year, you're savings on income taxes will be $400, more than enough to pay for your mechanic's bill.

Pirate's picture
verified

Anyone making $20K a year and

Anyone making $20K a year and still paying income taxes, deserves it.

Pirate's picture
verified

And how, exactly do you

And how, exactly do you suppose they balance that budget? You don't know? I'll tell you; smoke, mirrors, lights, bells, whistles, fogs, ponies, and fairy dust. Works every time they do it.

Centarie2000's picture
verified

you are right that the

you are right that the legislature can raise taxes no matter what because they have to have a balanced budget. BUT how much more can the people of maine afford to give? people will begin to say "forget this" and either move or shoot down tax increases, like recently. then the legislature will either have to make some "tough decisions" (like the rest of the working maine citizens), or they will be replaced. sorry, but you can only squeeze so much blood from a worker.

tron's picture

But we're not voting on raising taxes

merely restructuring the ones we now have. If anything this will make it easier to balance the budget in the future, since more of the current taxes will be collected on a more stable base then salaries. But you cannot get the right wing wackos to see this inherent truth, all they see is that this was enacted by Democrats so it is automatically bad. They, as usual, have stood on the sidelines doing absolutely nothing but complain.

Pirate's picture
verified

Tell us about how the

Tell us about how the tourists are going to bear the brunt of the broadened sales tax.

vzep's picture

Troll, I mean tron

What do you care about taxes either way? It's not like you earn your money.

tron's picture

Oh man,

you're gonna get pounded by the right wing wackos. But it's great to have a truthful evaluation of the measure. Now, however the chronic lies will be repeated over and over again, like a broken record.

Pirate's picture
verified

The only lies and misstated

The only lies and misstated facts are in the editorial you just read.

lewistonauburnsucks's picture

Tron

a lying, lazy lefty who fears work and earning a real dollar

SonOfTron's picture

repeating lies

hey dan, what do you mean the lies will be repeated over and over again. us "right wing wackos" leave that to you. it seems that is the only thing you are qualified to do, is to repeat the lies from the left over and over and over and over again.

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