Maine climbs up the list of high-tax states

Yahoo! Maine has moved from the seventh highest income tax rate in the country to sixth. If we try hard, maybe we can... dare we say? ... be number one!

But don't blame this latest indignity on Tuesday's rejection of a 2-percent income tax rate cut approved in 2009 by the legislature.

That would have dropped us way down to 25th on the list of states, but it's not what pushed us up the list.

So, how did it happen?

Simple. Rhode Island moved down. Way down.

Last Friday, the General Assembly there "unanimously approved the most sweeping changes to the state's personal income-tax system in nearly 40 years," according to the Providence Journal.

Hey, wasn't that what we were saying last year about our tax-reform plan?

Rhode Island was a bit more ambitious in its tax cutting. Its top rate will go from 9.9 percent to 5.99 percent, a nearly 4 percent cut.

Maine was only trying to muster a 2 percent reduction, from 8.5 percent to 6.5.

Rhode Island is now 25th among the states, about where we would have been had not voters repealed tax reform Tuesday.

Now Rhode Island is doing all the crowing, and you can practically hear it from here.

"This is the moment that we can change our reputation as a high-tax state," the Journal quoted House Finance Chairman Steven M. Costantino as saying.

"Let's tell our neighbors, 'We are ready to do business.' "

Hey, but it was our idea first!

Bragged State Rep. Helio Melo, this tax overhaul "will basically put us back on the competitive map."

Yea, yea.

Said State Sen. Daniel DaPonte, lower taxes will send a message to "out-of-state entrepreneurs that Rhode Island welcomes them."

OK, already.

Those Rhode Islanders really know how it rub it in.

But, really, our plan was better. In the Ocean State, only 60 percent of the state's residents were projected to see an income tax cut. In Maine, that was upwards of 90 percent.

The strength of Maine's plan was that it passed an estimated $400 million worth of sales, lodging and restaurant taxes to out-of-state visitors.

Now, after Tuesday's vote, we are free to pay those taxes ourselves, while continuing to offer our visitors some of the lowest such taxes in New England.

Unfortunately, tax reform was complicated and the issue easily manipulated. It's hard to argue facts with the TV image of a man secretly stuffing money into his suit pockets.

In fact, the nonpartisan analysis done by the Maine Revenue Service showed that the lowest-income Mainers had the most to gain from tax reform.

Now, as they say, the people have spoken. We've spoken up for higher taxes.

And in 10 years, another generation will wonder why nearly every other state pays lower income rates.

Stay informed — Get the news delivered for free in your inbox.

I'm interested in ...

In order to make comments, you must verify your account.

In order to comment on SunJournal.com, you must use your real name and include the town in which you live in your profile. A member of our staff will call you to verify this information. To join in, fill out your user profile completely and check the box "please verify my status." We'll get back to you within one business day to verify your account.

Login or create an account here.

Our policy prohibits comments that are:

  • Defamatory, abusive, obscene, racist, or otherwise hateful
  • Excessively foul and/or vulgar
  • Inappropriately sexual
  • Baseless personal attacks or otherwise threatening
  • Contain illegal material, or material that infringes on the rights of others
  • Commercial postings attempting to sell a product/item
If you violate this policy, your comment will be removed and your account may be banned.

Advertisement

Displaying comments, from newest to oldest

Pirate's picture
verified

"It was lies that killed this

"It was lies that killed this reform package."
dlaurels is absolutely right on this. It was the democrat lies that killed it, because the voters were able to see THROUGH the lies and repeal that sloppy piece of legislation.
Great job of picking up on that, dl..

dlaurels's picture
verified

mistake

It was a big mistake to veto the tax reform package. It was the lies that killed this reform package. I really am beginning to wonder who can afford to live in this state.

thinkingman's picture

Hoodwink, thats trons way of

Hoodwink, thats trons way of saying the dems might lose to smarter people, and later when we do win and tease him he'll say he called the election correctly...duh!

tron's picture

ah, so we must wait until

you've hoodwink all the voters before revealing your plan. Kind of a cowardly way to go, isn't it?

Pirate's picture
verified

"you've hoodwink all the

"you've hoodwink all the voters before revealing your plan."
"You have to pass the bill in order to find out what's in it." Nancy Pelosi.
Get the picture, T?

BWright's picture
verified

Tron wrote: so now it's up to

Tron wrote: so now it's up to the right wing wackos to submit their own plan for tax reform.

We will Tron, shortly after the November elections. ;-)

tron's picture

Don't you think you should

reveal what your plan is BEFORE the election, just so people know what they're voting for? OR is your plan to deceive people?

tron's picture

You are correct, Mr. Wright, it was NOT

a lie. And I'll explain. This legislation was passed by the legislature and signed by the governor. It was law. The referendum was to veto the law, in other words to overturn existing legislation. So until the referendum passed, the maximum income tax rate was 6%, more or less, now it is at 8%, more or less. I know there are decimals involved, but I'm trying to make it easier to understand. So by voting yes, the people of Maine raised the maximum income tax rate 30%. But the people have spoken, even if most didn't fully understand the ramifications, so now it's up to the right wing wackos to submit their own plan for tax reform. Thus far I've heard absolutely nothing, big surprise.

thinkingman's picture

You're kidding, here's the

You're kidding, here's the problem with your flawed logic tron, some of my income last year when i filed was due at the 8.5% bracket...and I paid after the law was passed, so technically, the law had not gone into effect yet, and was suspended due to the peoples referendum, thus NO employer changed tax withholding to match the new rates as would normally be the case such as with obummers magic credits a year ago!

Pirate's picture
verified

You completely overlook the

You completely overlook the tax rate reduction was to be neutralized by the inclusion of some 100 extra items to be taxable whereas they had previously not been. Your posts are totally devoid of fact.

BWright's picture
verified

Tron wrote: The YES side

Tron wrote: The YES side blanketed the state with lies so often, that even they believed it.

Tron, the no on 1 side stated that if the yes side won, income taxes would raised 30%, is that not a lie?

BWright's picture
verified

Question 1 stopped a tax

Question 1 stopped a tax shift, not a tax reduction. Maine people were smart enough to see this. Now is the time to start from scratch and introduce real tax reform, not tax shifting!

SirRuncibleSpoon's picture
verified

Speaking Up For Higher Taxes?

The Journal applies a false dichotomy here: voters either embraced the new tax configurations or declared their love of high income tax rates. Not so. I think things were much more interesting and much more complicated. My own vote to repeal reflected my complete lack of trust in the people running our one-party state. Given a rich new assortment of taxes, our Democrats would ramp each in turn up to the max to pay for their purchase of voters by feeding entitlement groups at the public trough. I also voted against every un-prioritized bond issue, even those that might arguably 'pay off'.

Right wing whacko that I be, I want the focus in Augusta to center on reduced spending. I want to see a legislative culture that earns my trust with a pattern of pro-business legislation and with a demonstrated knack for program pruning and program accountability. I want the bureaucracy to shrink and the private sector encouraged to grow. Yeah-open the state for business!

The tax configuration and schedule that such a government presents would at least get a second look based on my respect for their intentions. Democrats intend to spend us into oblivion with government largesse that, of course, demands confiscatory levels of taxation. Having a cornucopia of taxes to fiddle with simply begs for Democrat mischief. I simply do not trust anything they propose at this point!

thinkingman's picture

BIlge, unfortunately the

BIlge, unfortunately the people of Maine do not make a connection between bonds being approved and taxes and long term debt...thus I only voted yes on transportation bonds, everything else is not appropriate for bonding - if we cant afford it now, don;t do it at all!

thinkingman's picture

BIlge, unfortunately the

BIlge, unfortunately the people of Maine do not make a connection between bonds being approved and taxes and long term debt...thus I only voted yes on transportation bonds, everything else is not appropriate for bonding - if we cant afford it now, don;t do it at all!

Rinoblast's picture

You always see a high return

You always see a high return on your money in infrastructure, education, and technology.

Bilgerat's picture

Bonds

I see no mention of bonds in any of these comments. We keep voting for bonds to prop up our infrastructure that have to be paid for somehow, so where is the money for those coming from? Not the tourists that's for sure. Maybe the tips they will leave will help make up the difference. Not one bond has been voted out in my memory, I'm sure there must have been some but I can't remember any. Tax and spend? Look in the mirror.

Pirate's picture
verified

Have Maine voters ever

Have Maine voters ever actually seen a bond issue they DIDN'T like?

mbthedragon's picture

Anyone who truly believes

Anyone who truly believes that the tax and spend liberals in the Democratic party have the peoples interests in mind are beyond help. You just cannot fix STUPID!

mrnpchick's picture
verified

That's interesting, Rino,

That's interesting, Rino, about the ski industry and they also forgot about golf courses. Maybe tourists don't ski or golf in Maine?!

yikes

why do people want to live in Maine? I just can't understand it....High tax and low income

Pirate's picture
verified

Ignorance?

Ignorance?

Pirate's picture
verified

Spam???? What do you mean,

Spam???? What do you mean, Spam?

Pirate's picture
verified

While Frank Sinatra sings,

While Frank Sinatra sings, "Stormy Weather", the flies and the spiders get along together.

veritas's picture
verified

As you say - "I just can't understand it"

But many of us DO understand it.

It's worth the little extra we spend in taxes to live in one of the safest states in the country, surrounded by pristine, natural beauty. I love the idea that I'm close to the ocean, very far away from McDonalds or any other 'plastic chain junk food store' - and I know most of my neighbors, and they know me. It's not for everyone, Thank God, and that's why they're not here. It's kind of quirky, and I've got friends who live in gadzillion dollar properties next to other friends who live in trailers. And they're pretty much on first name basis if they want to get anything done.

thinkingman's picture

Its not that far to McDonalds

Its not that far to McDonalds V, regardless of where you are....

veritas's picture
verified

Nineteen miles doesn't exactly make the Clown....

Nineteen miles doesn't exactly make the Clown a "Fast Food Joint"

When I have a 'General Store' two blocks away. And they sell pizza, beer, and wine - along with gourmet sandwiches..

Or I can walk half a block to Lobsterman's Wharf.

But reckon you have your own 'comfort level'

thinkingman's picture

V - its all in perspective -

V - its all in perspective - depends how bad you want mcDonalds, for a lot of people in Maine 19 miles is nothing more than a drive to the corner store...

veritas's picture
verified

There's perspective - and perspective....

Rob - You no doubt strike me as the type who would find great value in driving nineteen miles for a Mickie-D's cholesterol-burger....

tron's picture

and if you knew him

you'd know he's done it more than once, although he lives less than half a mile from one. But if you've seen his kids.........

Pirate's picture
verified

Where is this place, Veritas?

Where is this place, Veritas? The Pirate would like to check out the "gourmet sandwich" menu.

veritas's picture
verified

Try www.ebgs.us

Pirate's picture
verified

Thank you; and the parrot

Thank you; and the parrot thanks you. His penchant for gourmet sandwiches is not easily sated.

veritas's picture
verified

East Boothbay General Store

East Boothbay General Store

- Not at all to be confused with touristy Boothbay Harbor

queenhoneeybee's picture
verified

like it matters???

like it matters???

veritas's picture
verified

I see dogs matter to you.

I've been places where I had to make a concerted effort to make sure I wasn't eating 'Dog'.

You really need to get out more often, Ms. Dunn - and see what the real world is all about.

queenhoneeybee's picture
verified

its pretty comical that you

its pretty comical that you don't want to be associated with 'dog' food, but then you act pretty childish on sj on the constant... what does it matter? who cares where you live and what you eat? are we suppose to be moved by it? infatuated by it? what? i don't get it...

look i have expensive taste but i don't go bragging about it. i don't feel that i have anything to prove to anyone else for that matter... so why does it matter?

furthermore-never said anything about you being a townie... i could care less. have a decent, educated, respectful conversation for once.

veritas's picture
verified

It mattered enough to you to think I was a 'Townie'

It mattered enough to you to think I was a 'Townie'

At your tender age and limited life experience, you only imagine what does and doesn't matter.

veritas's picture
verified

How much money you want to lay on that.....???

How much money you want to lay on that.....???

Pirate's picture
verified

Veritas makes good points.

Veritas makes good points. However....(fill in the blanks)

Rinoblast's picture

Here's how to make Maine's

Here's how to make Maine's plan work: Expand the sales tax, but do not exclude things just because certain business owners supported your campaign (I'm looking at you, Ski Industry!). To increase the savings, also bump up meals and lodging tax. Cries that this will reduce tourism ignore the fact that many tourist destinations like Florida have double-digit taxes on tourists, and it hasn't appeared to slow their industry down. People just don't pay much attention taxes when they take a vacation. By definition, expanding the sales tax will mean taking more money form our pockets, but also from the pockets of out-of-staters. Rather than take this additional money and do fuzzy math with income tax rates and deductions, we should lower the overall sales tax rate. This ensures that even though we have more things taxed, everything (except meals and lodging) is taxed at a lower rate and helps to stabilize our tax base.

Rinoblast's picture

Minor slip-up: If you follow

Minor slip-up: If you follow my "sales tax as a zero sum game" thinking, nothing is done to stabilize the tax base, since you'd collect the same % of money from the various taxes, although I still believe it saves Mainers money. Another idea would be to keep the sales tax rate the same, and apply the savings proportionately to other areas of income like fees and licenses. You could even look to lower excise tax rates and pass more sales tax revenue on to local municipalities.

Pirate's picture
verified

The Pirate could support your

The Pirate could support your premise, Rino

thinkingman's picture

As could I, apples don't fall

As could I, apples don't fall far from the tree, even if he is a liberal most of the time...but lets make sure any tax reduction is actually reduced in the budget and not just spent elsewhere...

Big Love's picture

That's good stuff

Patches, bahaha. hmm, let's see. The poor go from having no income tax liability to having no income tax liability and having to pay a regressive tax on more goods and services. That helps you how, Tron? What was the next step? Were they going to give tax credits to you to help you pay your new sales taxes? Pay for tax cuts with cuts in spending, not new taxes.

Pirate's picture
verified

Good post, TMan

Good post, TMan

thinkingman's picture

Seems just yesterday

Seems just yesterday jalbrecth was on here telling us maine wasn't taxed that much and that we were like 34th in the country....and now suddenly we're either 6th or 7th? Oh my gosh, how could you be so far off the mark jon? Personally I liked the "But, really, our plan was better. In the Ocean State, only 60 percent of the state's residents were projected to see an income tax cut. In Maine, that was upwards of 90 percent"...I'm curious how this is even possible given only about 60% of the population pays INCOME taxes? How could 90% save on income taxes....they may have saved on taxes overall as even tron pointed out a couple days later this law would have given people back money who paid no taxes.
Oh and lets not forget the grwing firestorm about to erupt in Rhode Island when they all have to register their next car at town hall...yes, part of this package was eliminating certaind eductions and reducing payments to the municipalities...ouch! The only thing this law had in common with maine's attempt was that neither actually cut taxes, they merely shifted the tax burden and not cut one penny of state gvernment spending excepting less payments to towns, which is simply a shift as to who gives you the bill....yeah big deal Rhode Island....isnt that where they sent Patches kennedy to expand their world domination?

Pirate's picture
verified

First of all, only an idiot

First of all, only an idiot calls another person he doesn't even know an idiot. Now that we've established your level of competency, in answer to your reference of my $100,000 paycheck; When did I take a pay cut?

Woody's picture
verified

Nice try, Pirate

But us Maine suckers see right through you. Us Maine suckers will be sending more money to Augusta this year, and so will you. Your left wing wacko vote cost us all money we could have had in our pockets. Thanks, idiot. Sock away most of your $100,000 paycheck and leave us poor folks in peace.

Pirate's picture
verified

"The strength of Maine's plan

"The strength of Maine's plan was that it passed an estimated $400 million worth of sales, lodging, and restaurant taxes to out-of-state visitiors. "
Sure, for 4 or 5 months; and then we Maine suckers woud bear the additional taxes for the remainder of the year. The SJ editorial writer failed to mention in his/her whine-fest that, although Rhode Island's income tax cut would affect only 60% of taxpayers as opposed to Maine's 90%, Rhode Island's scenario did not engage in the shuffleboard game of adding 102 new items to the sales tax as Maine's did.
Nice try, but fortunately, in a rare display of insight, Maine voters saw right trough Augusta's little sham. Tax reform my eye; You wanna cut the State income tax from 8.5% to 6.5%? Have at it, but couple it with SPENDING reform instead of another shell game, which our legislators in Augusta have elevated to an art form.

tron's picture

great editorial, BUT

the right wing wackos won't believe it. The YES side blanketed the state with lies so often, that even they believed it. And they scared more Mainers into believing it also. Facts mean nothing, perception is everything. Fine, the people have spoken, now it's up to the right wing wackos to enact their own tax reform legislation, by themselves, and we're waiting.

thinkingman's picture

yeah right.

tron, please list the SPECIFIC lies that were spread to get people to vote yes on One...

veritas's picture
verified

Easy

That one could no longer utilize deductions for mortgage interest and real estate taxes. (Rob - you spread that)

That over one hundred 'New' taxes were created - when it was the same old sales tax, with less loop-holes

thinkingman's picture

Actually thats not a lie, the

Actually thats not a lie, the federal itemized program would be eliminated as is and replaced with a modified version, thus my comments were in fact correct...

Advertisement