Maine Politics

From the Piscataqua to the St. John

Monday, May 02, 2005


This legislative session's tax plan buffet has been laid out. It's now up to the Taxation Committee and the legislature to choose the tastiest morsels.

Baldacci's plan calls for a slight reduction in the highest state income tax rate, an increase in the low-income tax credit, and an eventual elimination of both the personal property tax on business equipment and the business equipment tax reimbursement program (BETR).

Sen. Joseph Perry, D-Bangor, and Rep. Richard Woodbury, U-Yarmouth, the Taxation Committee chairmen, have their own plan which would flatten the state income tax at 6% and create a broader sales tax at 4%. (The BDN believes this plan is DOA)

Rep. Ben Dudley D-Portland and a coalition of progressive groups called "Taxpayers for a Fair Budget" have submitted a plan that would create a more graduated income tax, increase property tax relief and cut parts of the BETR in order to help small businesses.

I haven't heard much from the Maine Heritage Policy Center, but they're probably backing a plan calling for a merger of the state's school lunch program and the hazardous waste disposal system in order to fund a tax cut for millionaires. Or something like that.

Other items of discussion include the implementation of a local-option sales-tax provision that could be used to raise funds for local development projects and a possible increase in "sin" taxes on alcohol and cigarettes.

Visit the new Maine Politics.


1. The Maine Heritage Policy Center offers factually based information on the alternatives availbable to Maine. Unless one wants Maine to sink to the level of providing a wilderness playground to the megalopolis to the south, our legislature should get moving to change the direction of our business climate. The MHPC is to be congratulated for advocating for the working people of Maine.

2. Only Oregon assesses the top rate on personal income at a lower dollar threshold than Maine..and they don't have a sales tax. Baldacci's proposal to reduce the rate from 8.50% to 8.45% is, frankly, pathetic. 

Posted by Bob

5/02/2005 07:24:00 AM


Hey Bob,

Was looking for some facts on the Heritage Policy Center site but could only find opinion that too many people get medicaid services....where's the so-called "factually based info" you referred to?

If you study the record of the last Republican Gov you may be shocked to find he increased our State's medicaid income by a stunning percentage....


Posted by Roy

5/03/2005 01:11:00 AM



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