Thursday, April 9, 2009

State Sen. Bartlett: Cut Income Tax, Broaden and Increase Sales Tax

One of Westbrook's two state senators, Phil Bartlett (D-Cumberland County), co-authored an op-ed in today's PPH about the need to cut the income tax in Maine from 8.5% to 6.5%, while simultaneously expanding the sales to include some previously untaxed goods and services, as well as increasing taxes on such things as lodging and car rentals:
In addition to putting several hundred dollars more
in your pocket, [tax reform] will make the state budget more
predictable, reducing the likelihood of large deficits and the painful cuts that
accompany them. Equally as important, it will make Maine a better place to do
business. Nearly all of Maine's small businesses will pay less in income taxes
and will have more money to reinvest in growing their business, hire more
employees or give existing employees raises. So how will the state reduce the
tax burden of Maine people so significantly? The proposal cuts the income tax
rate by more than 20 percent, from 8.5 percent to 6.5 percent, and establishes a
series of refundable tax credits that will lower most people's tax burden even
further. To pay for the income tax cut, the plan proposes to extend the sales
tax to a few areas that will be paid in large part by tourists and modestly
increasing the taxes on rental cars, meals and lodging.
- John C.L. Morgan

1 comment:

Anonymous said...

How will this make budgeting more predictable, with a sales tax that can fluctuate based on economic conditions. Income Tax is the most stable form of taxing for a State. This "tax reform" is really a tax shift from the wealthy to the less affluent. Since we live in the state year round, we will be most affected by this.