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April 3, 2009

Business groups split over tax bill

Maine's business community is divided over a plan to change Maine's tax structure.

The bill, LD 1088, proposed by a bipartisan group of lawmakers, would reduce the personal income tax rate, increase the meals and lodging taxes and levy a 5% sales tax on previously tax-free services like car repairs and bowling, according to the Bangor Daily News. Proponents say the bill would stabilize the state's tax revenue base. But at a recent hearing in Augusta, members of the business community spoke out against the bill, saying it would hurt the tourism industry.

The Maine Merchants Association opposes the bill, the Maine State Chamber of Commerce is hoping for amendments to limit spending and tax rates, and the Portland Regional Chamber of Commerce and the Maine Municipal Association are in favor of it, according to the Associated Press.

Reader comments

From Sarah

You are robbing Peter to pay Paul. Since when do Maine people not go out to eat, get their vehicles repaired or go bowling? This is the same old tired approach of fixing everything by raising taxes instead of looking at the tough love approach of cutting government and spending.  

From Bruce

It appears that our legislators are busy working on the supply side of the formula, busily finding ways to increase taxes or shift taxes around. I propose more focus on the demand side of the equation - cut spending in every area possible, and limit or cease the introduction of legislation that will cost more money. It's time for Maine to carry a true balanced budget, not just a balanced budget on paper (which is why our hospitals are so behind on getting paid, among many other vendors to the state).  

From Richard

Tourism bonus 2 1/2 months and all Mainers picking up the freight ALL 12 MONTHS! The savings does not off set the overall expense. Cut costs vs increased taxes to cover deficites. A Business can not operate for long in the hole so why can the State of Maine??  

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