I found the article early this month in the Sun Journal regarding Paul LePage’s proposed attempt to reduce and eventually eliminate the state income tax, interesting regarding how he intends to accomplish this transition.
He was obsessed with this idea while he was governor for eight years. The attempt at that time was not popular and was defeated. He now expects increased economic activity resulting from more seniors remaining in Maine rather than leaving after six months, or people moving back to Maine from zero income tax states such as Florida, would make up half the lost revenue. Unidentified budget cuts would make up the difference.
It is very simple why seniors leave after six months and people from Florida will not relocate here. It has nothing to do with the income tax. They don’t want to live in Maine in the winter and freeze their buns off.
Currently the state income tax generates approximately $2 billion of revenue, which is 44% of total revenue needed to balance the state’s budget. The assumption that the increased economic activity and unidentified budget cuts would replace the lost revenue is not realistic. Unfortunately, it would require substantial increases on many taxes and fees to offset the lost revenue.
Richard Smith, Lewiston
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