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June 11, 2009

Baldacci urges changes to tax reform bill

By The Mainebiz News Staff

Gov. John Baldacci says he will not sign a controversial tax reform bill approved by the Legislature last week unless changes are made to the proposed expansion of the sales tax.

Baldacci is planning to introduce a revised version of the bill, LD 1088, that would eliminate the sales tax proposed for some outdoor recreational activities, such as skiing and golf, and get rid of a proposed increase to the real estate transfer tax on high-end homes, according to news reports. To make up the revenue that would not be gained from the expanded sales tax, Baldacci proposes to set the top income tax rate at 6.85% for those who make over $250,000 a year, and 6.5% for everyone else, according to MPBN. The original bill would have lowered the income tax to 6.5% for everyone.

The bill was met with firm opposition from Republicans and the business community, who say the bill is too complicated, hurts Maine's small businesses and does not represent meaningful tax reform. A coalition of chambers of commerce and business owners on Tuesday delivered a letter to Baldacci laying out the 10 reasons why he should veto LD 1088.

 

Reader comments

From Jon (Thu 6/11/2009 12:07 PM)

Welcome to Maine: Taxation Land  

From suzan elichaa (Thu 6/11/2009 12:21 PM)

Dont hide tax increases. If the state wants more money, raise the income tax rate for EVERYONE.

Hiding taxes as car registration, meal tax increases, etc is just a stupid waste of time and resources for everyone. Be honest and get rid of the "hidden taxes" and increase the income tax rate.

From Bob (Thu 6/11/2009 1:30 PM)

When times are good, the State wants more money and when times are bad, the State wants more money. The answer to every problem in Augusta is to bleed us for more.

What difference does it make if they take it from my pay check or ding me at the cash register? It's the same old store, more money, more money, more money.

From Dick (Thu 6/11/2009 1:31 PM)

There's an interesting editorial in today's Lewiston Sun Journal.

http://www.sunjournal.com/story/321465-3/OurView/Tax_reform_Baldacci_should_resist_efforts_to_water_down_bill/

From John (Thu 6/11/2009 2:51 PM)

When will the charade end? I hope this is finally the straw the breaks the camels back. We need new leadership poised to get this state heading in the right direction. Enough is enough we all need to get real mad and throw these bums out. This administration has more than ample time to address real reform. Good riddence Baldacci.  

From Rick Snow (Thu 6/11/2009 3:19 PM)

I just wish the Gov. would veto this bill and start all over again. The big lobby groups have gotten Baldacci to bow down to them and he is leaving the small businesses to die a fast death. I hope we can find a way to overturn this law before it goes into effect. Other wise the poor people of Maine will become much poorer thanks to our weak kneed Gov.  

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