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LEWISTON – Chip Morrison has been hosting get-togethers between Chamber of Commerce members and local legislators for years now, but Monday’s meeting had a different feel to it.

Optimism.

“I’m more optimistic about what’s going on in the Legislature now than I’ve ever been,” said Morrison, who has been chamber president for 12 years.

The root of his optimism stems from reforms targeted for education spending and health care – the two biggest expenses in the state’s budget. The governor’s bold proposal to trim school administration statewide is sending a signal that Augusta is serious about lowering spending and there are no sacred cows. And expected changes from the Dirigo Commission – including consideration of high-risk pools – could lower cost and expand coverage for Maine’s under- and un-insured. The sum total could be significant tax relief.

“People are working together to attack the problems. This is an opportunity for us really,” he said.

Tax proposals dominated discussion at the Ramada breakfast meeting, especially ideas about lowering property and income taxes and broadening the sales taxes. Members of the chamber’s Business Advocacy Committee, which outlines the chamber’s legislative priorities for the year, attended, as did about eight local legislators.

Democrats Margaret Craven and Peggy Rotundo said targeting more revenue from sales tax was worth pursuing to shift some of the tax burden off property taxpayers, especially if the sales tax were broadened to include professional services such as legal, medical and accounting.

Ron Lebel, an attorney with Skelton Taintor & Abbott, said he thought it could be considered if imposing new sales taxes were part of a pro-job, pro-growth package of reforms. In particular, he said raising the Homestead Exemption from $7,000 to $50,000 would offer significant tax relief for most middle-class Mainers and encourage young people to buy homes and set down roots here. Increased sales taxes could help fill the revenue gap while the larger Homestead Exemption was being phased in.

He also used the moment to push for state income tax reform, especially for the thousands of small business owners who report business income as personal income on their taxes.

“We can’t get a pro-growth attitude in Maine without income tax relief,” he said.

Rep. Michael Vaughan, a Republican from Durham, said he’s introduced a bill that would lower income tax brackets incrementally over five years. And he encouraged the breakfast attendees to push for hydro and wind power alternatives, citing electricity costs as a considerable impediment to Maine businesses.

“It’s a big item, yet we’re a net exporter of power,” he said.

Vaughan said he agreed with Morrison that this session has a chance to make significant changes.

“There are some really good reforms out there to be discussed,” he said. “We should be following up with the best results and not reinvent the wheel all over again.”

His sense of optimism was shared by Rep. Deborah Simpson, D-Auburn, who reminded people of the expanded circuit breaker program as an under-used avenue of tax relief.

“I think people are in agreement that something needs to change and they are willing to compromise,” she said of the session in general. “There’s a real give-and-take sense in the Legislature now.”

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