I’m writing to expose the flaws within the Maine Paid Family and Medical Leave law as well as the untruths being spread by the Legislature to sway public opinion in favor of it.
Despite what people have been told, this tax will in most cases be borne entirely by the employee. Sen. Mattie Daughtry and Rep. Kristin Cloutier, the laws’ cosponsors, are telling us that a 1% tax will be charged to employers giving them the option of passing half of the amount onto the employees. They should know full well, however, that most employers will do just that, and who can blame them?
The verbiage is written as such to allow the Legislature to keep its hands clean and push off any blame for the diminished paychecks to someone other than themselves.
But it doesn’t stop there. In many cases, the workers will bear the entire expense. Businesses will always find ways to recover costs, and this is no different.
The expense from this tax will likely be passed on by either increasing the employee contribution toward health insurance and other benefits, eliminating some benefits altogether, or reducing annual wage increases to offset it.
Older workers will be penalized more so, as money that was slated to go into their 401(k)s, etc., will now be “taken” by the state to fund a program that most will never use, harming their retirement savings.
Stephen Lowit, Leeds
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