Bridge to further tax reform

In just a few weeks, legislators return to Augusta. From all across the state they will travel through a cold January morning to the State House. For some, it’s the first time in office. Others are veterans. Collectively, these men and women play a central role in our future.

Republicans and Democrats have announced that property tax relief and tax reform are high priorities. That’s good news. Maine has one of the highest tax burdens as a percent of income in the nation.

The governor has submitted a tax relief bill to the Legislature. Since legislative committees won’t begin work until January, a Joint Select Committee on Property Tax Reform was created and is now considering the governor’s bill. Ideally, this committee will agree on a tax relief plan that both Republicans and Democrats can support.

It’s important that the Legislature act on this plan in January for several reasons.

Several groups are circulating petitions and collecting signatures to put property tax initiatives on the ballot next November. The deadline for submitting the petitions is Jan. 20. If submitted, the questions automatically go on the ballot. However, if the Legislature enacts a law before Jan. 20, some of these groups may refrain from proceeding.

There’s another problem. Let’s assume for a moment that one or more tax relief initiates are filed on Jan. 20. If this happens the Legislature may be prohibited from enacting a tax relief bill without also sending it to referendum.

All these competing measures will create chaos at the polls. Even worse, they will delay tax relief for another year at least.

Committee members know that unless action is taken soon, the problems created by the high tax burden will only intensify. Even so, some legislators may be inclined to put off making a decision, preferring to deal with tax reform in a more comprehensive manner. Under most circumstances, that might be good idea, but not now.

For years, tax reform plans have been put on the table, and that’s where they’ve stayed. Reasons abound for inaction. Not enough information. Too much information. Not enough time. A desire for narrow focus. A desire to be comprehensive. A desire for the status quo.

The governor’s plan pulls together elements from a number of earlier proposals, including the Maine Chamber’s MainePlan. It is a good start, and provides a foundation for the work of the Joint Select Committee.

The committee should emerge from their meetings with a bipartisan proposal that both Democrats and Republicans can support. It should be passed early in the session. It will provide a bridge to further tax reform and give the Legislature some flexibility in addressing other priorities.

Developing a plan that both Republicans and Democrats can support doesn’t have to mean compromising principles.

It does mean being willing to listen to one another, to get the facts, to search for alternatives, to be flexible in approach and to remain at the table until a solution is forged.

Plenty of expertise and good ideas are available. There are experienced legislators on the Joint Select Committee with deep knowledge of this issue, and a sincere desire to get it resolved. If tax relief legislation is enacted in January, the Legislature can then turn its attention to improving the overall tax structure, something that has been needed for many years.

In 1835, Alexis de Tocqueville wrote in “Democracy in America,” “Men are no longer bound together by ideas, but by interests; and it would seem as if human opinions were reduced to a sort of intellectual dust, scattered on every side, unable to collect, unable to cohere.”

The Joint Select Committee on Tax Reform has an opportunity to bring together the scattered opinions into a cohesive policy, one that sets clear strategy based on solid principles and practical implementation. The Legislature has a fresh opportunity to take on one of the most difficult of all public policy issues.

It’s an opportunity to lead. It’s why 186 legislators will go to Augusta in January.

Valerie R. Landry is the former state commissioner of labor.