Baldacci moves toward broader state sales tax

AUGUSTA – The Democratic candidate for governor appeared Monday to be inching closer toward broadening Maine’s sales tax, a policy already favored by Green Independent Party candidate Jonathan Carter but opposed by Republican nominee Peter Cianchette and independent bidder John Michael.

John Baldacci’s remarks Monday seemed to signal an evolutionary stance on the issue of extending the sales tax to now exempt goods and services. During the past 60 days, the candidate or his spokesman has been quoted as saying Baldacci would oppose expanding the sales tax and that consideration of new taxes was premature.

Baldacci made his comments Monday to members of the state’s hospitality and tourism industry, which sponsored a candidates forum at The Senator Inn. The Bangor Democrat, who has continued to outpace his opponents in all of the statewide polls, said Monday he would support a study to explore broadening the sales tax base in an effort to reduce the volatility of Maine’s tax system, which rises and falls with the economy.

A sitting 2nd District U.S. representative, Baldacci passed on a fifth term to make a bid for the Blaine House, in part, he said, to help lead the state to new economic prosperity. Baldacci told reporters Monday that the state economy was uppermost on the minds of small-business owners, such as his audience of more than 100 representatives of the hospitality industry.

With Maine facing a potential $1 billion budget gap between projected revenues and the anticipated costs of state government over the next three years, Baldacci said last week that talk of raising taxes at this time was “premature.” Still, Gov. Angus King has said that if the deficit persists, the next governor would have to at least consider some form of new temporary taxes.

“Our sales tax base is a narrow base,” Baldacci said Monday, adding that he is looking forward to receiving the report of a legislative committee charged with reviewing the state’s tax system – particularly the pros and cons associated with the expansion of the sales tax.

Baldacci has steadfastly denied he is interested in raising taxes, emphasizing that House Speaker Michael Saxl’s tax reform committee is trying to reach its goals through a balanced approach that would wind up being revenue-neutral with respect to its impact on taxpayers.

Yet, some quarters in the State House remain suspicious. Republicans in the House and Senate are watching the committee – concerned that manipulating the state’s tax structure could actually wind up costing taxpayers more money to expand social service programs they claim the state already cannot afford.

Baldacci is in a four-way race with Cianchette, a former state legislator from South Portland; Carter, a well-known environmental activist from Lexington Township; and Michael, a maverick state representative from Auburn.

Cianchette did not attend Monday’s candidates forum as he was on a camping trip with his 10-year-old son on Richardson Lake. Standing in for the candidate, spokesman Roy Lenardson said a Cianchette administration would not consider any new taxes and instead would focus on reducing state spending.

“When it comes to spending, the next Legislature will become accustomed to hearing two words from Peter: ‘no’ and ‘veto,'” Lenardson said.

Both Lenardson and Carter said Baldacci’s willingness to explore the impact of broadening the sales tax indicated the candidate was at least willing to consider the option. Carter, who has advocated expanding the sales tax from the first day of his campaign, said Baldacci’s remarks represented a turnabout in the candidate’s position.

“He has said he would not support any broadening of the sales tax in the past,” Carter said. “So now he’s pandering to voters because he knows that with a $1 billion shortfall, he has to at least say something that looks like he’s responsive. I guess he’s finally coming around to following my lead.”