On June 8th you will vote on LD 1495 tax reform. Ask yourself this question before you vote on this bill; Is this bill a Trojan Horse or is it the pony we always wanted as a kid? I am sure you all remember the story of the Trojan Horse where the Greeks got into the city of Troy by hiding in a wooden horse. The Trojans thought the Greeks had left this horse as a tribute to them and brought it inside the gates. Only to find the Greeks hiding inside, who quickly overcame the Trojans. Let’s look at LD 1495 keeping these two ideas in mind.
Pony: The sales tax base has been broadened. This is critical to do because we get most of our sales tax money from construction and car sales. When times are bad these sources dry up pretty quickly.
Trojan Horse: Over 100 items will now be taxed. This includes car repairs, car washes, movie tickets, Circus tickets, paintball, interior decorating, pet grooming, pet boarding, and gun repair to name a few. (Golfing and ski tickets are exempt). Small businesses, trades people, technicians, mechanics, and countless others will become tax collectors for the state, with all the accounting and paper work problems.
Pony: Maine IRS estimates that 95 percent of Maine residents will see an income tax reduction. They estimate that the 88 percent of Mainers will see a net tax reduction. The estimated decrease in total taxes is between $37 to $85.
Trojan Horse: According to Maine Revenue Services, some 31,000 Maine families will have an income tax increase. A family with a combined income of $100,000, with federal deductions, of say $25,000, will lose in the new tax changes. (Deductions will be eliminated in this reform package).
Nearly 54,000 families will lose money because the sales tax they pay on a broader range of goods will total more than their income tax cut. Citizens making more that $300,000 will see a significant decrease in taxes.
Pony: The law will enact a “household credit” for resident individuals. The credit depends on taxpayer filing status with eventual phase out for higher income individuals.
Trojan Horse: The law will eliminate personal exemptions, the standard deduction and itemized deductions.
Pony: Low income citizens will receive a tax credit once they file an income tax return.
Trojan Horse: Many low income families do not file tax returns. Maine IRS estimates 50 percent of those eligible for this credit will not file their return because the credit may cost as much as getting the return prepared.
Pony: The law will increase meals and lodging taxes from 7 to 8.5 percent. This tax increase will be passed on to out of state tourist.
Trojan Horse: Mainers eat 70 percent of the taxable meals and seek lodging 30 percent of the taxable rentals. Therefore, Mainers will pay 50 percent of this tax.
Pony: Presently, Maine had approximately the 7th highest income tax rate in the nation. LD 1495 will reduce the tax burden on the people of Maine.
Trojan Horse: According to Baker Newman and Noyes out of South Portland: “For many taxpayers, this tax reform law will likely result in a very minor tax savings or increase.” Therefore, the state will still be 7th.
On June 8th you will decide if you have a Pony or Trojan Horse.
If you have questions about this or anything else gives me a call at 645-3420 or e-mail me at drtom16@hotmail.com as always it is my pleasure to serve the people of District 90.
Well said Tom……………..everything about this “tax reform” is bad. Time to start with a clean sheet of paper next year, and with any luck at all,…..many more conservatives in the statehouse.
This is the SECOND time that the PEOPLE of Maine had to go and collect signatures to get a PEOPLE’S VETO on the ballot to tell the imbiciles in Augusta DO NOT ADD MORE TAXES. This bill adds 102 items or services that were not taxed before. Adding a tax for Lawn mowing? How stupid.
VOTE YES ONE ONE!!!!!!!
The NO on ONE side has ads running every day on TV and radio. The gist is: If you vote YES, you’re voting to increase taxes during a recession. YES is a vote to leave things alone. Calling that an increase is typical vocabulary abuse from the Augustacrats.
Whoa, big surprise from the Democrats. Tax the poor and leave your rich buddies alone. Keep everyone in their place.
The outrageous No on One lies alone are reason enough to vote Yes.
Well said. Mr. Saviello.
The government can’t give to anybody anything that the government does not first take from somebody else.