Letter: Rep. Dill: Changing the formula doesn’t put money in your pocket (Sept. 12, 2008)


Editor:

 [The following is a response from Brian Durham, Maine State House of Representatives candidate to a guest column by Rep. Cynthia Dill printed in the Sept. 5 Sentry.]

   Maine’s state-local tax burden rank did drop from second to 15th highest in the United States after the Tax Foundation changed their methodology. Changing the formula does not put more money in your pocket, encourage investment or stimulate our economy.

    The Tax Foundation data goes back to 1977 when Maine’s state-local tax burden ranked 35th. In 20 years our tax burden has increased 20 places, moving us from the bottom third to the top third of all states. This trend is shameful, and Democrats cannot hide from responsibility because they have controlled the Maine House of Representatives since 1975.

    While our state-local tax burden is relatively high, our per-capita personal income is rather low at 35th.  Maine has high taxes imposed on low incomes. The Maine Center for Economic Policy says “average Maine families have seen no meaningful increase in income over the last five years.” Most of us would agree. So what do we do?

     Rep. Dill correctly states we must raise incomes and lower income and capital gains taxes. I would be pleased to work with her to accomplish this. She then suggests “broadening the sales tax base.” This means taxing goods that are not now taxed such as food, or expanding the sales tax to cover services such as haircuts, snow plowing, legal services, health services, etc. Finding new things to tax in a high tax state is the wrong solution.  

    Businesses create jobs, not government. Rather than finding innovative ways to raise or spend tax dollars, how about we just ask businesses what Maine can do to help them succeed? Forbes Magazine ranks Maine 46th on their list of the best states for business. Only four states are less friendly to business than we are. Maine must attract new business, and encourage existing businesses, so that they will create new jobs and grow our economy. A growing economy provides more money for people as well as government, and spreads our tax burden over a larger income base. Let’s unleash the Maine innovative spirit.

    Durham is a retired Coast Guard officer and the Republican candidate for House District 122 in South Portland. www.bdurham.org.

style="margin: 0.0px 0.0px 0.0px 0.0px; text-align: justify; font: 9.0px New Century Schoolbook">Brian Durham

South Portland


 

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