True tax reform

The tax burden in Maine continues to be one of the highest in the nation. At the risk of oversimplifying, it seems that if we are going to change that, we need to reduce taxes. To reduce taxes we will need to control state spending.

Our Legislature is floundering about trying to come up with some sort of “tax reform” plan. I get nervous when the Legislature talks about reforming taxes, because their idea of tax reform almost never means tax reduction. Instead, to many legislators, tax reform usually means increasing a tax or creating a new tax with intention of lowering some other tax.

Tax reform proposals usually include euphemisms like “revenue neutrality” – replacing revenue that is lost when one tax rate is reduced by revenues generated from new taxes (hardly tax reform).

Another buzzword kicking around Augusta these days is “tax exportability” – passing a new tax that will supposedly be paid by people from outside of Maine.

There are several proposals, including Grow Smart Maine’s Brookings Report, which would increase the tax on lodging and-or meals in Maine. Proponents claim that tourists will be footing the bill if the tax increase is enacted. But if you are a Maine resident who has eaten in a restaurant or stayed in a hotel, motel or campground, this tax will be on you.

Instead of trying to figure out ways to “export” new taxes, our legislators should focus on “importing” revenue by promoting tourism and other economic activity.

Legislators should also be doing all they can to control state spending rather than looking for some scheme to tax Maine people so they won’t notice.

Peter Daigle

Dedham