A recurring sentiment coming from Augusta, stated by the governor and applauded by many in the Legislature, is an absolute unwillingness to raise taxes. Many agree that in difficult economic times it would be a hardship on Maine families and businesses, large and small, to increase expenses.

The Legislature has a tradition of being pretty cavalier with what constitutes a tax, often substituting the dirty “t” word with “fees.” The net result is the same: an increased cost to Mainers. In response to the latest estimated budget shortfall, members of the Taxation Committee explored tax breaks and other incentives as a way to help offset the budget shortfall. Plain and simple, taking away these so-called perks for Maine’s business is akin to raising their taxes.

You may have seen the TV commercial where a GOP candidate for the Blaine House talks up the need for more jobs in Maine. While the spot (and the candidate) lacks any specifics and an actual viable plan to create jobs, few would suggest his argument is without merit. Research, development (job creation) and education provide the strongest routes to pulling Maine and America from this recession.

In the most recent edition of the “Science and Technology Action Plan,” developed every five years by the Maine Office of Innovation, leading research institutions and business leaders suggest three benchmarks to be met in the next five years. An increase in research and development (to $1.4 billion), add 5,400 new jobs to the state’s innovation sectors, and increase per capital income to $42,000 (from $33,962).

As GrowSmart Maine points out, economic development investments are not blank checks; programs are expected to produce measurable results.

However, we can’t mitigate the potential upside of economic development investments by removing items such as tax exemptions on fuel and electricity or the shipbuilding tax credits. This is a short-term fix with long-term consequences. It will make it more difficult for Bath Iron Works to bid on projects and cause them to be even more susceptible to swings in the economy. The pulp and paper industry in the state is already facing difficult challenges; fuel and energy are among their largest budget lines, adding to their costs, while still expecting them to be competitive.

The Legislature should be commended for looking at all opportunities to save and reduce our current deficit. However, it seems to have missed the boat. State Rep. Kathleen Chase (R-Wells) was quoted as saying, “I think that’s what the whole goal of these are, is to attract business, as we have to look at that and see if that’s really worked.” Perhaps these incentives have not yielded the desired outcome of business development; however, these incentives remain crucial to the success and livelihood of many Mainers.

Rep. Tom Watson (D-Bath) spoke about the tax exemptions for manufacturing companies. He said, “It was developed at a time when Maine was a manufacturing state; it’s no longer there.” Admittedly, Maine is not the manufacturing hub it once was, in all likelihood we will not return to our manufacturing glory days. Instead of looking at methods to stimulate job growth and make it easier on Maine’s manufacturers, apparently there are those in Augusta who think it more prudent to punish those that are still here.

It is conceivable that the business tax exemptions on the books did not yield the desired outcomes. Removing those that are in place — programs that Maine businesses rely on — without replacing them with similar programs that will give equal or greater immediate benefits is simply wrong.

Will Fessenden is a past chair of the Androscoggin County Democratic Committee, considers himself a”community/grassroots organizer,” and serves on several nonprofit boards and committees. He works in Auburn and lives in Sabattus with his wife Jennifer and their two boys. E-mail: [email protected]