Benjamin Franklin once said, “No man’s life, liberty or fortune is safe while our legislature is in session.” Although those words predated the creation of the Maine Legislature, they clearly apply to lawmakers in Augusta. The Legislature has hit upon the idea of increasing taxes on beer and wine. This money would be used to pay for Dirigo Health and other programs backed by special interest groups.
This proposed tax hike flies in the face of Gov. John Baldacci’s commitment not to raise taxes. In March, Trish Riley from the Governor’s Office of Health Policy and Financing told a legislative committee in testimony, “As much as the Baldacci administration supports the policy progress made in this legislature – and we do support it – we cannot, at this time, support adding a new tax burden to the men and women already facing the prospects of working two or three jobs just to get by.”
Riley later said, “The governor has been resolute in his position that we cannot further burden Maine families with more taxes.”
But in a late night meeting that is exactly the plan that Maine lawmakers cooked up. The problem stems from trying to do too much with too few resources. A tax on beer and wine is a tax, plain and simple. When you consider that most households in Maine consume beer or wine, it is as broad based a tax as you could imagine.
We all know the statistics: Maine is the state that regularly shows up at the top of national studies with the dubious distinction of having the greatest tax burden. We have a relatively large, rural state with a small population. In an economic downturn, which we are in right now, we feel the pain faster and longer than many other states. Add to that a longer winter and higher fuel prices and Maine families are stretched to the breaking point.
But there are also some other considerations here: currently Maine people pay the highest taxes on beer of any state in New England. Our beer taxes are among the highest in the nation. The excise tax on beer alone contributes tens of millions of dollars to the state economy. Maine people who drink beer already pay more to the state in taxes than most places, but in Augusta more is never enough.
We are currently in the midst of severe economic pressures that are squeezing families. Many people are feeling the intense stress of skyrocketing food prices, out of control heating fuel and gasoline that will soon top $4 a gallon. Add to that the shrinking value of real estate and very tough winter and many Mainers are in very rough shape financially.
Raising taxes on Maine people will not help this situation; it will only make it worse. The special interest groups, and their allies in the Legislature, would have you believe this is a small tax hike on specialty items and the money will go to pay for programs that help Maine people. The reality is very different; these special interest groups hope the state will raise tens of millions of dollars in new taxes and funnel much of that money to continue funding these groups.
There are many good ideas in the world, but Maine taxpayers do not have the resources to pay for all of them. That is how people come to live in the state with the highest tax burden in the nation, by funding one good idea at a time. Lawmakers in Augusta must learn to handle the state’s finances the same way Maine people do; by only purchasing what we can afford and cutting back when necessary.
Baldacci has made a commitment to hold the line on new taxes, and we applaud that. Maine taxpayers can help the governor maintain that commitment by contacting legislative leaders and rank and file lawmakers to make this point: The best idea for Maine is no new taxes on beer, wine or anything else.
Scott Solman is president of Maine Distributors in Bangor. Pat Wheeler is the owner of Burby & Bates in Orono.
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