August 21st Update — LD 1485, Are you being misinformed?
There is an e-mail circulating around Lewiston-Auburn that is providing false information. The e-mail is from a former legislator. This person is very misinformed. Below is the correct information on LD 1485. If you have signed the petition because you received false information, please consider having your named removed from the petition.
To have your name removed from a petition, write a letter to the petition organizers and send a copy of the letter to the Secretary of State. There is nothing that guarantees that the organizers will remove the signer’s name, but hopefully they will do the right thing. The fact that the organizers know that the Secretary of State knows that the signer would like his/her name removed puts pressure on the organizers to do the right thing.
If petitioners have given you incorrect or misleading information regarding the petition in question, you can submit a written complaint to the Secretary of State.
Email: cec.elections@maine.gov
Letter:
Julie Flynn, Deputy Secretary of State
101 State House Station
Augusta, Maine 04333-0101
___________________________________________
LD 1495 lowers the income tax slightly, but increases a myriad of taxes that vastly out weigh it.
The TRUTH: LD 1495 lowers the income tax SIGNIFICANTLY, reducing the top rate from 8.5% to 6.5% for Mainers making up to $250,000/year, and reducing the top rate to 6.85% for everyone making more than $250,000/year. Overall, the income tax on Maine residents is reduced by $112 million, while the additional tax burden on Mainers totals only about $55 million. Thus, Maine residents will see an overall tax DECREASE of over $57 million/year. That is NET savings AFTER any new taxes are paid.
The homestead exemption which lowers your property tax will be gone along with all other exemptions.
The TRUTH: LD 1495 does NOT in any way change the homestead exemption. It does remove the personal income tax exemption, but replaces it with a household tax credit that is of greater value for high income earners (who see benefit, instead, through the lower top rate). Overall, over 95% of Maine taxpayers will see a reduction in their income taxes.
It will increase the food and lodging tax to 81/2 %, all Labor on repairs on all services will be taxed.
The TRUTH: LD 1495 does NOT tax all services or repairs. The bill is very selective in what additional taxes it applies, so that Maine will still have one of the narrowest sales tax bases in the country. For instance, many opponents of LD 1495 are falsely saying that electricians, plumbers, and contracting services will all be taxed. In truth, NONE will be. The meals and lodging tax IS indeed being increased to 8.5%, but Maine’s rate has been EXTREMEMLY LOW compared just about any other tourist destination in the country. (The national average is over 12%.) Even with the increase in LD 1495, Maine’s meals and lodging rate remains lower than almost everywhere, including our nearest competitors: New Hampshire and Vermont. Sure, Mainers also pay meals and lodging taxes, but we will get back much more in tax reductions than we will pay in these taxes. It’s important to note that IF LD 1495 did not increase the meals and lodging tax (which is paid in part by non residents) than the income taxes on Maine residents could not be lowered as much. Don’t you want to see as big a net tax decrease as possible?
The labor on getting you hair done will be taxed.
The TRUTH: There is NO new tax on hair cuts.
It is extremely hard to bring about comprehensive tax reform, and no plan can please everyone. Indeed, LD 1495 is not perfect, so I understand why some people do not support it. But it REALLY hurts to have many of the arguments against it be simply UNTRUE. That is not fair to the broad range of legislators (both Republican and Democratic) who have labored over tax reform for years. More importantly, it is not fair to the people of Maine. Let us have debates based on TRUTH!
