Business groups speak out against tax bill
A group of business organizations is rallying to convince Gov. John Baldacci to veto a controversial tax reform bill passed last week by the Legislature.
The group, called the Not This, Not Now Coalition, submitted a six-page letter yesterday to Baldacci that listed 10 reasons why he should veto LD 1088. As passed, the bill would increase meals and lodging tax from 7% to 8.5%, reduce the state income tax from 8.5% to 6.5% and expand the sales tax to new items. The coalition -- which includes the Maine State Chamber of Commerce, the Maine Association of Realtors and the Maine Innkeepers Association -- argues the bill would stymie job growth, tax items and services not taxed anywhere else in New England and hurt the state's tourism industry. Baldacci has expressed concerns over some aspects of the bill and has been meeting with legislative leaders to refine it, who hope to draft a new bill in response to those concerns, according to the Kennebec Journal.
Some businesses have already said the proposed tax changes could force them to relocate out of state or close altogether.
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