The Maine Legislature has done it again – more taxes for us lucky Mainers.
The legislators thought it wise to raise the excise taxes on beer and wine, and create a whole new excise tax on soda, in order to fund the ill-conceived and doomed Dirigo health insurance program.
Maine’s higher taxes on beer has put Maine in the No. 1 spot for highest excise tax on beer in New England, and No. 3 nationwide. Wine excise tax also captures the No. 1 spot in New England, and close to the top nationwide.
Rep. Hannah Pingree stated that the “Distributors might not pass this tax on to retailers and on to consumers.” Just goes to show how much she knows about business. Sen. John Nutting stated the Legislature “Couldn’t raise tobacco taxes again, because we already killed that revenue stream because of overtaxing.”
Distributors and retailers will quickly see the impact of those taxes, as people realize that beverage prices in New Hampshire are much more attractive than in Maine. Buying habits will eventually change. People can make a day of it – go to New Hampshire to buy liquor, beer, wine, soda and cigarettes; maybe gas up the car while there.
Maine businesses will feel the hurt on this one. The state will lose too, because fewer sales means less tax revenue.
When are Maine voters going to catch on and vote the tax-and-spend legislators out of Augusta?
Dennis A. Barriault, Vice President
Central Distributors Inc., Lewiston
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