Gov. Paul LePage has proposed the mother of all cost-shifting schemes and the first Republican tax increase. Here is how it would work.
First, only public employees would be required to pay a 2 percent increase to the Maine Public Employees Retirement System, which increases the amount currently deducted and put in the retirement system fund from 7.65 percent per paycheck to 9.65 percent per check.
Second, the state’s share to MePERS is currently 5.5 percent and would decrease. During the two year budget, the 2 percent increase, combined with all the other proposed changes, would cost the teachers, retirees and state employees $524 million; during the next 16 years, more than $3.5 billion.
At the same time Gov. LePage is taxing public employees 2 percent more, freezing then capping COLAs and capping insurances on retirees and public workers, he has proposed the state provide a $200 million tax cut for business — including about a 1 percent cut in income taxes to the wealthiest Mainers.
Any way you look at this mother of all cost shifting tax schemes, it is unfair, inequitable and downright despicable.
Crystal Ward, Lewiston
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