I don’t buy the flawed calculations that say we live in the “highest taxed” state.
Taxes paid in Maine are the highest relative to income, but that calculation includes the real estate taxes paid by wealthy out-of-staters and the sales taxes paid by the tourists. So since these non-residents don’t pay income tax to Maine, their higher incomes aren’t counted.
Also, Maine relies considerably less on fees and other non-tax sources of revenue than other states, yet the “highest tax” figure doesn’t weigh in the fees charged by other states. Maine’s property taxes are reduced for lower income residents by the Homestead Exemption and Property Tax Refund programs. Yet eligible Mainers don’t use these tax-savers. No wonder it looks bad!
Still, our taxes are high relative to our incomes, as we struggle to provide high quality New England services throughout a large, rural state…all with our Arkansas incomes.
I’m more worried about the overall fairness of our tax system. We do need significant changes in how we generate revenues.
A reader asked: “Aside from TABOR, do you have any suggestions about how the
common citizen can exercise direct control over taxes and fees?”
TABOR doesn’t help citizens control taxes. TABOR has citizens voting on tax matters only if two-thirds of the relevant governing body votes for taxes or fees that are higher than what the TABOR formula allows. Increasing state funding for education and the LD1 spending limits are already slowing growth of municipal budgets. Just ask your Budget Committee!
Citizens should elect municipal officials who will restrain tax growth, who will struggle to lower taxes and simultaneously provide increasingly expensive services. Citizens should consider efficiencies, such as administrative consolidation, that could lower expenses.
Citizens could amend their town’s charter to allow citizen initiatives on budget issues. Not a good idea, but by retaining majority rule, it’s much better than TABOR. More towns can also subject the budget to voter approval.
Citizens would also be smart to elect municipal officials who will enact a local option circuit breaker to lower property taxes for those residents least able to afford them. Townspeople should also elect officials who pledge not to create tax increment financing arrangements, which do not increase economic development. They just line the pockets of recipient businesses.
How about citizens proposing initiatives calling for the power to enact a local option sales tax? That way a town can develop a tax policy more appropriate to its own situation.
Remember, TABOR’s minority control does not guarantee a greater voice for voters. Under TABOR, we’d have the exact same tax system, but locked in place. It is not tax reform. Just because there’s no comprehensive reform ready is no reason to vote for TABOR. Don’t cut off your nose to spite your face.
Towns/municipalities/school districts must have difficult, frank discussions about the services they want and the money they have, before demanding statewide changes. Still, we need Progressive tax reform allowing most people to lower their taxes, while preserving services, without injuring the economy.
Try these “radical” solutions:
1. Campaign diligently to assure Democrats retake control of the U.S. House and Senate.
2. Make sure our Maine senators vote to preserve the Estate Tax and repeal the tax cuts and war-spending that are decimating federal revenues.
Defeat TABOR and maybe it won’t come to these:
• Start driving fire trucks, spending cold days in the classrooms, paving the roads ourselves.
• Stop complaining about worn-out infrastructure; potholes and weak bridges are fine.
• Reduce the number of game wardens, have a totally voluntary Legislature, and cut the Governor’s salary.
This is my last column for a while. You’ll see me out on the campaign trail! Thanks for listening!
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