A few weeks ago, I moderated a Sun Journal debate in Lewiston on the tax-cap initiative. There were many good questions asked by the citizens who attended. But there was one that stuck in my mind: “If Palesky fails, what issues will be mandated to quell the extreme frustration of the Maine taxpayer?”

This question was significant because it directly addressed some of the strong emotions that have been brought up around this initiative. And I believe that exploring these emotions is where you will find the essence of the debate.

The strongest emotions come from the people who fear they will lose their job. The opponents claim that municipalities will be forced to cut essential services. Librarians, school employees, firefighters and police officers will be laid off if the initiative passes. The interest group, Citizens United To Protect Our Public Safety, Schools and Communities, claims that the initiative will cost local government at least $530 million a year in revenues. The city of Lewiston estimates that it would lose $19 million to $25 million per year in property tax revenue. The city of Auburn estimates it would lose $27 million per year in property tax revenue.

There are also intense feelings of helplessness as property taxes continue to rise in many parts of the state. Some senior citizens face a choice between selling their houses or getting by with less in order to pay their property taxes.

The interest group Tax Cap YES! points out that property taxes in Maine are the highest in the nation as a percentage of personal income. The mill rate for Lewiston is $27.70, while it is $29.38 for Auburn. The tax cap would roll it back to 10 mills or 1 percent of value plus the cost of allowable debt.

Unfortunately for the proponents, I believe Palesky will be defeated. Why? Because the fear of job loses will outweigh the anger over increasing property taxes. Having a job is one of the most fundamental concerns that a person has. Moreover, a public sector job is often more stable than a job in the private sector and can provide health insurance.

As of Sept. 30, $876,000 has been raised to defeat the tax cap. The proponents have raised only $460,000. Moreover, most of the money raised since July has been by the opposition. This shows that the momentum is with the opposition.

Back to the debate question over taxpayer anger. However, instead of answering the query, I suggest changing the target. How about a new question? This time directed toward private businesses and corporations: “What will it take to bring a steady supply of high quality, private-sector jobs to Maine?” This question is important because it is the inverted reality on which the tax-cap proponents argument is based on.

In many towns, local government (including education) provides a critical base of employment for educated professionals. Absent the possibility of public-sector jobs like teachers, firefighters, police officers and librarians, many might leave the community. Simply put, there aren’t enough private-sector jobs with decent wages and good benefits to fill the demand for them.

Why does Maine have a shortage of good paying, private-sector jobs? Many cite our historical reliance on natural resource extraction jobs, trade liberalization policies, our transportation system, the educational levels of our citizens and our geography. Others will mention high taxes.

We can’t do anything about our geography. There is little state government can do about free trade, because it is a national political issue.

However, the state is making it easier for citizens to further their education by the recent creation of a community college system. The state is trying to provide incentives to modernize our mills and make them as competitive as possible. There is also a bi-partisan push toward building a East-West Northern New England Interstate highway.

This leaves taxes. We can cut them but that, in and of itself, won’t bring in the jobs we need. The fundamental problem is the inability of the market system to provide enough private jobs that pay a living wage and essential benefits for our citizens.

The anger that many feel toward high taxes is understandable and healthy for a democracy. It might be worthwhile, however, to think more broadly and realize the deeper reasons why we need the taxes that we raise. Without them, we would put a lot of people out of work and our state would move backward. The real problem with taxes is over who pays them and who does not.

Karl Trautman is the chairperson of the Department of Social Sciences at Central Maine Community College.


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