By the time you read this, the Legislature’s Taxation Committee I hope will have completed crafting a comprehensive tax reform plan aimed at reducing the tax burden on Maine residents and putting more money back in your pocket.

The two major goals are cutting income taxes and providing property tax relief for Maine residents – and the plan tentatively calls for broadening the sales tax base to include some discretionary items and exporting a portion of our tax burden to visitors to Maine who use our services.

Decreasing Maine’s income tax is an important way to lower the tax burden for nearly everyone. Maine currently has a graduated tax rate, but it reaches the maximum rate of 8.5 percent at about $18,500. That means that most Maine people pay the highest rate for income taxes. Reducing the income tax rate is a sure way to reduce the tax burden for most Maine residents.

The Taxation Committee’s plan is called the “Tax Fairness Plan” and it comprises a comprehensive series of changes to our tax code that are long overdue. While nothing is set in stone, I would like to share with you the tentative plans so you can provide me with your feedback on this important issue. The plan calls for:

• Reducing our income tax rate from 8.5 percent to 6 percent, which should help most Maine people.

• Providing property tax relief by increasing the Homestead Exemption and increasing rebates through the Property Tax and Rent Refund program.

• Reactivating a local tax deferral plan to help older residents stay in their homes.

This would all be accomplished by broadening our sales tax and increasing exportable taxes that visitors to Maine would pay. That means:

• Removing sales tax exemptions on optional and luxury services to bring our tax code more in line with other states.

* Increasing the excise tax on beer and wine for the first time since the 1960s.

* Bringing Maine’s tax on prepared foods and lodging more in line with other New England states that rely on tourism like we do.

One of the important aspects of this plan is that it would be revenue neutral, which means it would decrease the amount of money that Maine residents pay without cutting services that are important to our quality of life.

The Taxation Committee currently estimates that this plan would save Maine taxpayers about 5 percent, or $160 million. It would also reduce Maine’s income tax rate from the seventh highest to the 16th lowest in the nation. The average Maine person would save more than $330 per year in total taxes under this plan.

The plan would also bring more stability to Maine’s revenue stream. Right now, most of Maine’s revenue from the sales tax depends on durable goods like washing machines and cars. But when the economy dips, sales slow down – and that means our revenue stream isn’t steady.

By expanding the revenue stream, our state budget will balance more easily, while also being more predictable and sustainable.

While tax policy may not be the most exciting topic, it has an immediate and direct impact on our lives and the state’s economy. The Legislature’s goal with this plan is to create a more fair and stable tax system that relieves the burden on Maine people, and this plan achieves that goal.

Rep. Ann E. Peoples represents part of Westbrook in the Maine House of Representatives. She serves on the Legislature’s Transportation Committee. She can be reached at home by calling 856-7264.