I am writing in support of a tax reform bill (LD 1088) that is sponsored by Rep. John Piotti and Sen. Peter Mills.
Hampered by the crippling economic downturn in the past year, and with bad weather and uncertainty still ahead in Maine and in the nation, there has to be a better way to collect taxes. Piotti and Mills have studied the problem and are proposing a sensible solution that addresses the problem of how both income and sales taxes are collected in Maine.
They propose to reduce state income taxes to 6.5 percent from the current rate of 8.5 percent, a rate higher than most other states, which drives both businesses and talented individuals away from Maine.And they propose to expand the tax base for sales taxes, increasing taxes on lodging and meals, which will then be shared by visitors from out of state.Some currently tax-exempt services will be taxed as well, the effect of which will be a more stable and reliable tax base.
In addition, most Mainers will see their taxes go down, since these new revenue sources should result in a $75 million overall tax reduction.Though some sales taxes will increase, most people will find themselves better off due to lower income taxes.And, best of all, we may finally be able to have more stable revenues that we can count on to fund needed programs.
Valerie Huebner, Farmington