Facing Economic Storm, Maine Legislators Whistle and Jingle Their Change

In a new legislative initiative, reported today in the Morning Sentinel, Maine legislators have displayed what can only be called uncanny callowness by proposing cutting the income tax by two percent and making up the difference by adding new sales taxes to ski lift tickets, movie tickets, meals and lodging, car rentals and dry cleaning.

This would, they suggest, move $160 million of revenues from one source to another. Their announcement indicated they estimate $75 million would be paid by out of state visitors. Might I suggest another explanation? This proposal will shift $160 million in state tax burden from the wealthy to the middle class.

There are many problems with the Maine state income tax, among others that it is too high. On the other hand, because it's based on income, it's progressive and it's reasonably fair. Maine citizens are among the highest taxed in the US. At the same time, the state is facing a staggering fiscal crisis because of job losses, property devaluation, and the rest of the fallout from our current economic malaise. The need to act is obvious. But this bill, by dropping some part of a fair and progressive tax (the more you make, the more you pay) to a "flat" tax on ski lift tickets or a movie or a meal out-- which is the same amount (and hence a higher percent of household income the poorer the purchaser) will just slam middle class families harder. Note: The truly poor don't take their families skiing or to the movies, they stay home and watch TV, for which they're already taxed a flat rate on their cable bill each month.

Maine legislators need to hear from the middle class, that efforts to change the sources of tax revenues by making them more regressive are not acceptable. The whining excuse that "more revenues will be raised from out of state tourists" doesn't cut it. We voted our legislators into office to be leaders and problem solvers. It's time they show some courage and leadership-- not just move their change around from one pocket to another. Please write to your representatives.