Wednesday, December 11, 2013
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Deriving a larger share of revenue from part-time residents allows Woodbury and friends to cut the state income tax to 4 percent, repeal the estate tax, reduce the corporate tax, and provide a $50,000 Homestead Exemption to Maine residents to help diminish the impact of property taxes.
Reducing the tax implications of income generation, property ownership, and the transfer of wealth among generations will make Maine more attractive for businesses and for those Mainers with the means to establish residency elsewhere to escape Maine's high taxes.
Woodbury's plan to modernize our taxation system deserves consideration solely on its merits, but we have been down the reform path before. The political and economic times coupled with its unique boldness has me thinking that Woodbury's plan may be viable this year.
The broad resistance to LePage's budget proposal, coupled with a chance to meaningfully reduce property and income taxes will have broad political appeal. The coalition of 11 legislators backing this plan, equally balanced among Democrats and Republicans, speaks to the opportunity at hand.
There will be strong resistance to Woodbury's reforms from strong interests, but the respect these 11 lawmakers have earned for their commitment to work toward pragmatic solutions gives their plan great credibility out of the gate.
Dan Demeritt is a Republican political consultant and public relations specialist. He is a former campaign aide and communications director for Gov. Paul LePage. He can be contacted at: