Maine must compete with other states

New York’s state and local tax burden is the second highest in the nation, when compared with personal income, averaging $142 per $1,000 of personal income, trailing only Maine’s burden of $144 per $1,000 of income. By that standard, New York’s state and local taxes are 26.8 percent above the national average of $112 per $1,000 of personal income.” – Buffalo, N.Y., News, July 18

“OneMaine, one year” (BDN editorial, Nov. 10-11) reminded us of the idea behind Gov. Angus King’s OneMaine proposal. The plan was that all Maine would prosper with increased investment in education, research and development, and by making the state friendlier to business. One goal recommended, “Forget the central planners and … create rural development offices so that when opportunity comes along there’s someone there to greet it.”

This makes a lot of sense. Why not take steps that increase the chances that someone calls?

Maine needs to go further and seriously deal with its unfriendly business environment. According to the 2001 Small Business Survival Index (www.sbsc.org), Maine went from number 42 last year to number 48 this year and is number 5 of the six New England states. Maine is one of the most business unfriendly states in the nation and in our region. Clearly we are headed in the wrong direction.

Maine must take steps to reverse this poverty-promoting policy of discouraging economic activity.

What would it take to be more business friendly than number 43 ranked New York? Maine already surpasses New York with lower unemployment tax, lower crime rate, lower electric utility costs and lower gas tax. Maine would move up past N.Y. on the Small Business Survival Index by reducing its top income tax and capital gains tax from 8.5 percent to 6.5 percent, reducing the corporate income tax from 8.93 percent to 8.5 percent, cutting the health insurance tax rate and worker’s comp rate in half. These steps would also move Maine past No. 42 ranked Vermont and regain ground lost in the last year.

How can we get through this recession if we are driving employers from our state with punitive taxes and regulations?

Let the governor and Legislature take up the challenge to change Maine’s nickname from Taxationland to Entrepreneurland. Maine has a strong entrepreneurial spirit that should be supported by public policy. All Maine will prosper when Maine becomes competitive with other states.

Betsy Chapman is an investment broker who lives in Hampden.