In May 2007, the Legislature’s Taxation Committee emerged from its laboratory with an aggressive tax reform plan that fell flat. As policy, it was sound, but as politics, it was discordant, because to support it, one had to fear that Maine’s budget was too vulnerable to an economic downturn.

This is not so hard to envision nowadays.

Maine’s narrow income and sales tax bases have taken a beating in the recession, the exact scenario tax reformers warned against. Leading economists, such as Charlie Colgan, have said if reform had been enacted in 2007, Maine would be in a better fiscal position today.

Oh, well.

On Thursday, the next iteration of tax reform starts its slog through the Legislature. This year’s proposal is a smarter version of its 2007 self, replete with a marketing campaign, greater recognition of public effect and political reality. In other words, it is everything its predecessor wasn’t – public, transparent, explainable and timely.

It is also modest, which is the plan’s biggest asset and drawback. In being sensitive to the political conditions that caused its failure in 2007, its architects might be sacrificing too much.

The plan cuts Maine’s top income tax rate from a ludicrous 8.25 percent to a defensible 6.5 percent. Two years ago, the plan called for 6 percent. We’d go even further – 5 percent? – to make a savage stroke against Mainers’ empty wallets and the state’s taxing reputation.

Along with an income tax cut, the plan broadens the sales tax with an eye on exportability – i.e. paid by non-Mainers – to reduce burden on residents. So, for example: Movie tickets and ski passes are in, but haircuts and dry cleaning are out.

(Our concern here is equity – the creation of a tiered tax system to target tourists, instead of everyone, regardless of their license plate, being taxed equally.)

Following this thinking, the tax on meals and lodging would rise from 7 to 8.5 percent, tax on car rentals from 10 to 15 percent, and real estate transfer taxes on home sales for more than $500,000 would increase from .44 to 1 percent.

The upshot of all these reforms is purportedly putting $75 million back into Maine, by spreading the sales tax, raising exportable taxes and reducing the income tax. It is a conclusion that is as difficult to argue with today as when proposed two years ago.

But this isn’t 2007, when the conditions tax reform tried to prevent have since arrived with calamitous consequences. While this proposal is geared to present political conditions, present economic conditions could, perhaps should, demand a plan that is even bolder.