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.
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