AUGUSTA — Republican Gov. Paul LePage is coming under fire for his attempt to raise and broaden the sales tax to help pay for his income tax cut.
LePage wants to raise the sales tax — currently 5.5 percent — one percentage point and expand it to include things like legal and accounting services. Tickets at movie theatres, summer camp tuition and dozens of other items would also be newly taxed.
Lawyers, accountants, camp directors and others told the Appropriations Committee Monday the proposal would make their customers go elsewhere and hurt their businesses.
LePage’s administration says it would shift more of the burden onto tourists and provide stability to state revenues. It says that with the income tax cut, Mainers will see an overall tax reduction of $300 million by 2019.
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