Conservative disinformation has hurt Maine’s economy.
Finally, the conservative Washington, D.C.-based Tax Foundation has agreed to portray Maine’s tax ranking accurately: We’re not among the two or three most heavily taxed states, as they’ve claimed for years. Instead, we’re further down the list at No. 15. The State Planning office and other economic experts in Maine have been asking the Tax Foundation and their in-state flag bearers to reflect Maine’s tax burden in an honest fashion for more than 10 years, and finally they have.
The truth about taxation is essential to economic progress in Maine. In-state organizations such as the Alliance for Maine’s Future, the Maine Heritage Policy Center, the Maine Economic Research Institute and the Maine Public Interest Spending Group have long depended on the Tax Foundation’s unwarranted ranking to drum up support and create simple but false sound bites attacking constructive state and local government programs.
But this fairer tax ranking must not end our efforts to make state and local government more efficient and cost-effective. The Legislature has been reducing the tax burden on Maine’s citizens for years. In 2000, the Legislature lowered the state sales tax from 6 percent to 5 percent. Then the snack tax was removed, homeowners were given tax breaks via the Homestead and Circuit Breaker exemptions and businesses were given property tax rebates via the Business Equipment Tax Reimbursement program and the creation of Pine Tree Zones.
What has been increased? The cigarette tax has gone up 37 cents, as has the small fee for out-of-state beer, wine and soda, raised for the first time in more than 40 years to pay for health insurance for more than 13,000 Mainers who would otherwise lose it.
In my two years in the Legislature, I have been gratified to see how the majority of legislators, business leaders and Maine citizens have worked together to support policies that have allowed us to progressively reduce the tax burden. But, we are faced with one of the lowest average salaries in the nation. Higher wages and skilled jobs have always been the necessary focus of any debate about economic development in Maine.
Maine’s bond package, which will invest $55 million in research and development to support sustainable economic growth, will draw more than $50 million in matching funds to help prepare Maine for a more prominent role in the economic future of our nation.
To provide an educated work force, we developed Opportunity Maine to provide tax credits for a portion of college loan debt if students attend college in Maine and stay in Maine after graduation.
To support Maine manufacturing, we expanded Pine Tree Zone benefits to companies that commit to hiring more people and making large capital investments here.
My observation is that Maine Democrats understand that quality health care and education are two of the most crucial elements of a successful economy. Investments in these two areas cost the state some money in the short term, but if we don’t, we will lose more and more good jobs and economic development opportunities in the long run.
I am pleased the Corporation for Enterprise Development, a national nonprofit organization, gave Maine an “A” on its report card of family finances and the state economy, ranking Maine in its top 10 states – particularly for education and health care quality.
I am also pleased Gov. John Baldacci is ready to join House Democrats in supporting a lowering of our income tax burden, set at much too high a rate for low-wage incomes.
What concerns me is that we have been distracted by the many thousands of dollars and countless hours spent by conservative interest groups to portray Maine as a bad investment for any business or service professional. What we will never know is how many businesses and professionals have been discouraged from bringing jobs and higher wages to Maine by this disinformation.
What we all need is to focus on promoting Maine, something that is easy to do when you aren’t distracted by inappropriate, inaccurate portrayals of our tax burden. Let’s hope those distractions are behind us.
Rep. Richard Wagner, D-Lewiston, is finishing his first term representing House District 73.
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