January 12

LePage budget proposal: Blueprint or massive tax shift?

Gov. LePage’s $6.2 billion two-year budget proposal draws heavy fire from Democrats; the House GOP leader says it calls for ‘right-sized government.’

By Steve Mistler smistler@pressherald.com
State House Bureau

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The Maine People's Alliance, a progressive group that helped Democrats win back the Legislature, called the budget "unconscionable" and threatened electoral consequences for Democratic lawmakers who vote for it without repealing the tax cut for wealthy Mainers.

"Governor LePage created a false crisis through his tax breaks for the wealthy and now he's looking to make the middle class and the poor pay the bill with cuts to health care and local schools," said Mike Tipping of the Maine People's Alliance in a statement.

Democrats have dodged direct questions about whether repealing or freezing the tax cuts will be negotiated as part of a budget solution.

Berry, echoing the statements of other Democratic leaders, would say only that "everything is on the table."

LePage acknowledged that his budget is designed to protect the $400 million tax cut package.

He suspects that the new Democratic majority will try to roll back the reductions during the coming budget debate. LePage's Republican colleagues have defended the tax cuts on several fronts, saying tax relief is especially important because Congress eliminated a payroll tax cut in its "fiscal cliff" deal.

Sen. Roger Katz, R-Augusta, said he is pleased that the governor didn't add to the "current heavy tax burden on Maine citizens."

LePage's proposal sets the stage for a political debate that will rage over the next several months.

But the real negotiations will take place among lawmakers on the Legislature's Appropriations Committee. The budget-writing panel will begin reviewing the budget and, most likely, make significant changes.

Democrats have the majority, but their counterproposal will need enough Republican support to override LePage's veto power.

 

State House Bureau Writer Michael Shepherd contributed to this report.

State House Bureau Writer Steve Mistler can be contacted at 620-7016 or at:
smistler@pressherald.com

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