People’s Veto of LD 1495 – Question 1

On June 8th, Voters will also be voting on Question 1 – the People’s Veto:

Question 1: is a People’s Veto of PL 2009, c. 382 “An Act To Implement Tax Relief and Tax Reform”)

“Do you want to reject the new law that lowers Maine’s income tax and replaces that revenue by making changes to the sales tax?”

CLICK HERE to Read the Changes to the tax law

CLICK HERE for the website of those OPPOSED to the Veto (No on 1)

CLICK HERE for the website from those IN FAVOR of the Veto (YES on 1)

In a nutshell, the law is a tax-shift increasing the number of items subject to sales tax and increasing the sales tax rate on meals & lodging.  In exchange the income tax rate for residents would decrease from 8.5% to 6.5%, with a surcharge of an additional .35% on taxable income in excess of $250,000.

Editors Note: Personally, I’m not comfortable with what is in the bill as passed, I see too many ways the sales taxes could be revisited and increased later.  I also am uncomfortable with the “progressive nature” of this tax plan.  We should be looking for real tax  reductions (and reduced spending) not a tax shift that in reality will be difficult to quantify and increase the cost of every day items. As a result I’ll be voting Yes to veto the bill. – M.A.B.