December 24, 2024
Column

Why I’m voting for TABOR

Last year Maine was one of only two states in the nation to have a declining economy. One state, Louisiana, was beset by a natural hurricane. Maine was beset by the human kind fed by high taxes and excessive government spending. I support TABOR as a means to address this issue for 10 reasons.

First, virtually all the people I talk with feel we need more financial discipline in Augusta. True, everyone has their special government subsidy (I like the voucher that goes to low- income kids to help them pay for college) but the underlying theme is that state government expenditures exceed our collective ability to pay. TABOR weds expenditures to our ability to pay.

Second, the lion’s share of investment in any state’s economy comes from the private sector. In Maine, we simply do not seem to be getting our share. The largest hue and cry I hear from private investors, at home and abroad, is that Maine is an unfriendly state in which to invest and high taxes are consistently near the top of the reasons why. The sad truth is that no matter how good the Maine work ethic, if the Maine work force is undercapitalized their productivity will be low and Maine products and services will not be competitive and our family incomes will remain low. TABOR should attract higher capitalization.

Third, Maine state government seems to have an inability to improve its efficiency. Consider public higher education. Time and again leadership sets out to streamline operations yet, cannot seem to get off the ground. State agencies as similar as the Finance Authority of Maine (FAME) and Maine Health and Higher Education Facilities Authority (MHHEFA) never seem to merge. Shared programs among local school districts often face barriers. The health and benefits packages of government employees often exceed those of the private sector who pay the bills. TABOR ups the ante on efficiencies.

Fourth, day after day in the BDN the ads of the candidates almost inevitably start with lowering taxes and creating a better business climate yet, in legislative session after legislative session there are few changes in broad base taxes. TABOR adds integrity to the ads.

Fifth, the problem of financing schools in towns where there are declining enrollments, underemployment and an aging population should not be blamed on TABOR. Whatever course we take, public financing will be tough. But what TABOR offers is a way out. It pushes state government to encourage greater efficiencies, allows for streamlined regulations and it leaves more money in the hands of local citizens.

Sixth, TABOR is the only serious opportunity Mainers have had to speak out on runaway spending in Augusta. Philosophically, I am not a fan of term limits, sunset provisions on laws and regulations or tax caps, but from time to time we citizens need to send a signal like we send to unruly kids, “Time Out.” Fortunately, TABOR allows for emergencies and overrides and of course the whole thing can be thrown out with a simple majority vote.

Seven, Gov. Baldacci talks of a 3.06 percent spending cap, candidate Barbara Merrill would cap property tax assessment increases at the rate of inflation, Pat LaMarche has empathy with TABOR and Chandler Woodcock supports TABOR. Most of our candidates say they oppose TABOR but could work with it. In many ways this suggests TABOR would be doing our governor and elected officials a real favor vis-?-vis the lobbyist and entrenched bureaucracies.

Eight, Maine faces a near perfect economic storm if we do not attack tax reform soon. Even our lower- income work force falls into our highest tax bracket. Our taxes are driving our better-to-do older citizens out of state. We provide higher education to our high school graduates but we discourage their potential employers and so our youth flee south for jobs. TABOR starts to unravel this cycle of economic mediocrity.

Nine, TABOR, like Alexander the Great, severs the spending Gordian Knot. It is a simple, forthright, across- the-board constraint which allows for moderate increases in government expenditures while capping excesses.

Ten, I personally dislike the attacks against Mainers who support tax constraints. TABOR is a serious and reasoned proposal deserving of civil discussion and debate. There is little doubt in my mind that TABOR’s out-of-state critics mean Maine no good.

Dr. William Beardsley resides in Bangor.


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