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AUBURN – Dennis Dunham wasn’t sure how he would vote on the Palesky tax cap before Thursday morning’s Chamber of Commerce breakfast.

And although he found the pro and con arguments compelling, he still wasn’t sure after the Chamber-sponsored debate.

“You could simply say that I have concerns about voting for the tax cap,” said Durham, co-owner of Budget Blinds of Central & Midcoast Maine. “But my bigger concern is, if I don’t do something, the Legislature will keep the status quo.”

A new Chamber member, Dunham was one of the hundreds of local businesspeople who attended the breakfast at the Hilton Garden Inn. The debate between Dennis Bailey – who represents Citizens United to Protect our Public Safety, Schools, and Communities – and Jack Wibby of Tax Cap Now, a proponent of the tax-cap referendum, was lively.

Sprinkled with references to the Red Sox and Yankees, both men laid out their positions under the watchful eye of moderator Ron Lebel. If the November referendum passes, it would limit property taxes to a mill rate of 10 across the state.

Wibby, a retired physics teacher who lives on Yarmouth’s Littlejohn Island, has seen his property taxes double. He spoke of the dire situation faced by many Maine people with respect to property taxes.

“I represent a lot of people – shy, quiet, elderly people – who are getting shafted in real good shape,” he said, noting that for people living on a fixed income, spiraling property taxes lead to hardship.

“(Choosing) between medicine and food isn’t a choice,” he said. “It’s a disaster.”

His opponent conceded that the tax situation in Maine is a mess, but the Palesky measure isn’t the solution.

“It sets a 10 mill tax cap in every community in Maine,” said Bailey, who noted the tax rate in the Lewiston-Auburn area hovers around 27 to 29 mills. “Something is going to give. There will be cuts in your services.”

Bailey said the measure ties the hands of municipalities, defeating the notion of local control.

“It will turn the Legislature into the local school board,” said Bailey. “The idea that we’re sending a message to Augusta is wrong; we’ll be sending power to Augusta.”

Underscoring their differences was a philosophical divide about faith in government. Wibby appeared before the Legislature’s Taxation Committee three times last legislative session to make a case for property tax relief, and although he was treated with respect, he considered it a waste of time.

“They don’t have the stomach for tax reform,” he said.

Worse, the Legislature as a whole has proved it can’t control its spending, so the solution is to give it less, according to Wibby.

“If they can’t get their hands on it, they can’t spend it,” he said.

Bailey said it’s anyone’s guess what the Legislature will ultimately decide for tax reform, but he said lawmakers are getting the message that property tax relief is needed now. He said a competing tax relief plan crafted by the Maine State Chamber of Commerce shows promise. The mistake would be to endorse Palesky out of frustration, he said.

“I think we can solve this problem,” said Bailey. “We just need to take a little more time to get it right.”

The effect of the tax cap on business also prompted split responses. Lebel noted that if Palesky passes, the Chicago owners of the Maine Mall will get a $1 million tax break.

“If a business owner can cut down on overhead, doesn’t that create wealth?” asked Wibby. “Government that is overly restrictive and overly expensive destroys wealth.”

“That’s $1 million out of South Portland’s budget going to Chicago,” said Bailey. “I have no sympathy for the owners of the Maine Mall. We need to get tax relief money to the people who need it.”

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