I propose the following:

• Property taxes – Legislation should be passed to freeze property taxes at current levels for residential property that is a primary residence. Taxes could increase no more than the cost of living. When the homeowner sells the property or it passes on to heirs, it would then be taxed at the current value. That tax would then be frozen for the new owner.

This would allow residents to know taxes would not increase at a rate that could force them out of their homes. This would still allow municipalities to have reasonable, increased funding for expenses. As property ownership is transferred, it would allow an increased tax on increased value.

• Sales tax – A study should be done, beginning with the elimination of all exemptions. The panel should include a number of non-legislative members. A case should then be made to add exemptions for items necessary for life sustenance, such as groceries, medical care, heating fuel and other exemptions deemed necessary. The tax rate should then be adjusted to make this revenue neutral. Broadening the base will minimize the impact that occurs when there is a downturn in the economy.

• Income tax – The top income for the top bracket should be increased to perhaps $75,000. The brackets should then be indexed for inflation. This would give an immediate tax cut to many Maine residents. The goal should be to lower the top rate to a more reasonable rate of perhaps 6 or 6.5 percent.

Stanley L. Tetenman, Poland

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