It doesn’t make sense to eliminate state income taxes, or greatly reduce them, while asking for an increase in sales taxes and eliminating state funding for municipal revenue sharing and state funding for K-12 public schools, as has been proposed. It will benefit the wealthy, but won’t create many jobs in Maine.

Most companies that hire people own substantial real estate and will have to pay much more in property taxes.

When a business owner is deciding where to locate a business, or make a business expansion, many questions are asked. For example, where are the natural resources needed and how much will it cost to bring them to the place of business? Where is the demand for the products and how much will it cost to get them to market? How much will it cost to meet environmental regulations? Will people be available to work who have the necessary skills and can they be hired for a reasonable wage? Is the infrastructure in good condition, including roads, fire departments, police departments, educational facilities, and recreational facilities. Are good hospitals nearby?

How much property tax will the business have to pay? Does the state and municipality where I locate my business have a stable tax policy, or do they keep changing it from time to time?

Business owners like stability so that they can make a multi-year business plan with confidence. If Maine eliminates the income tax this year, how certain can anyone be that the Maine Legislature will not vote to increase the income tax a few years from now?

These tax proposals are very unlikely to result in significant economic growth in Maine, but they will make it harder for a majority of Maine people to pay for their cost of living.

Elery Keene


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