LD 849: Robbing the Middle to Give to the Top

Posted on April 7, 2012. Filed under: Uncategorized | Tags: |

(Crossposted from Rep. Seth Berry (D-Bowdoinham)’s site BerryBlog with permission)

 

LD 849: Robbing the Middle to Give to the Top

Poised for enactment in the House next week, LD 849 is fiscally irresponsible due to its TABOR-like tax ratchet.  Equally bad, it robs the middle class to give to the extremely wealthy.By cutting income taxes in half, LD 849 would shift costs to towns and schools.*  These costs, passed on as increased property taxes, will bankrupt Maine’s middle class.

Once LD 849 is fully implemented, here is how the $600 million per year cost shift will likely affect your overall taxes, in today’s dollars.

It may take a while to get to this point:  keep in mind that LD 849 is intended to take credit for the income tax changes, while leaving the tough decisions about paying for it to others in the future.  But if you’re a typical Mainer, you should expect overall tax increases of over $800 per year once LD 849 is fully implemented.

LD 849:  A bill only Prince John could love

Maine’s economic growth — sadly, weakest in the nation in the first year of Augusta’s new majority — depends on a strong middle class, with money in their pockets.  Like a suicidal airline pilot, L.D. 849 throws both the state’s credit rating and our middle class into a nose dive.

Want to tell your legislators to vote NO?  Here’s how .

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*This is why the Maine Municipal Association  is one of LD 849’s strongest opponents, even though the bill pretends to have no impact on the property tax.  Already, due to the last round of income tax cuts, state funding to schools and towns is 20% to 35% lower than statutory goals require.   For politicians at the state level, it is simply easier to blame local tax rates than to make the tough choices in Augusta.

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