Eliminating the business equipment tax is the single most important step that Maine lawmakers can take to ensure economic growth and to retain and create Maine’s good paying jobs. For Maine workers to remain competitive in the global economy, they must have the best technology and the most modern equipment. Without it, they simply cannot compete.

The business equipment tax is a penalty tax that discourages critical investment by large and small businesses. As a tax on investment for production capacity, it is a bad tax. It discourages investments that would bolster production and offer businesses a more competitive edge in today’s market.

Most of the qualifying investment will be made by capital-intensive businesses that provide Maine’s better-paying jobs, which is very important to our economy. Manufacturing companies are a key to Maine’s economic future; but, these companies, like ours, will survive in Maine only if we can invest in new equipment and technology.

Maine’s larger companies have an alternative for their corporate investments outside Maine. Most small businesses remain in Maine because of family ties; yet, second- and third-generation small businesses are highly taxed for staying in Maine. Eliminating the equipment tax for small business would at least acknowledge their continuing value to the Maine economy in the 21st century.

Eliminating the business equipment tax will provide the type of incentive that will result in the economic benefits and prosperity that we all want.

Susan D. Lagueux, Raymond J. Lagueux, Lewiston