LISBON FALLS — Do you want to see Mainers hit with $40 million in new taxes? Neither do I.

But if Maine doesn’t take action to bring Maine’s tax codes in line with the federal government, that’s what will happen in our state.

Make no mistake: Tax conformity is tax relief. Republican lawmakers want to see permanent tax conformity. Unfortunately, we have faced strong opposition from our Democratic counterparts, who prefer to work with the Maine People’s Alliance in using the issue of tax relief for political games.

DEMOCRATS, TAKE NOTICE

Republicans, however, will be standing firm for the working people of Maine. Last week, employers throughout my Senate district began speaking up in earnest about the importance of tax conformity to the success of their businesses.

I hope that Democrats in the Legislature stand up and take notice, including members of the Taxation Committee who have been making the media rounds to discount the benefits of tax relief for Maine.

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By calculating out the average benefit to $2,200, Democrats are saying that it is not worthwhile. Well, $2,200 is a lot of money – it can buy or repair equipment, provide a cushion for slow weeks in the winter, and purchase more inventory. Perhaps a small-business owner hasn’t taken a paycheck in a while and could pull from the $2,200 to help support his family.

Never mind that the $2,200 calculation ignores the time and money business owners are shelling out to try to figure out their taxes now, as the longer we delay passing legislation to permanently provide tax relief, the more ridiculously complicated filing one’s taxes becomes.

If businesses can’t count on Maine to be a reliably consistent state for conducting business, why would they invest in us? Most states pass conformity quickly, and by not doing so we are telling businesses that it’s tough to operate in Maine.

It’s simply not worth the hassle for them to come to a state where there is an annual uproar about tax policy. We can’t send a message to the rest of the country that Maine is bad for business. It’s not the way to continue on the positive path we have finally put our economy on.

NO NEEDLESS LINKAGE

Right now, with a House amendment, Democrats are trying to tie education funding to providing tax relief by proposing to simultaneously eliminate the Maine Capital Investment Credit in 2016 while raiding the state’s budget stabilization fund for millions in new education funding. What they aren’t mentioning is that just since 2010, funding for education has increased by over $100 million.

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I support funding education, but the Democrats’ scheme is merely election-year politics that will hurt our state.

Roughly 4,000 small businesses benefit from the Maine Capital Investment Credit, as do 300 large filers in the state. That’s 4,300 businesses that provide jobs to Mainers. If we don’t support their economic activity in our state, we’ll be sliding backward very quickly.

While the business side of lowering taxes is certainly significant, I must also note that the legislation before us does not just affect businesses. It also includes a benefit for teachers who pay out of their own pocket for supplies, which we recognize as most Maine teachers.

The teacher-expense deduction has been used by 18,000 teachers in the state, allowing them up to $250 in deductions each year. Democrats are trying to stop this provision from being permanently put into Maine’s tax code.

TAX RELIEF HELD HOSTAGE

Such liberals as Massachusetts Sen. Elizabeth Warren and Maine’s own Rep. Chellie Pingree joined Republicans in voting for these tax reforms when they came before the House and Senate for a vote. President Obama signed it into law.

Why are Democratic members of Maine’s Legislature not willing to do so? Holding one bill hostage over the fate of another is reminiscent of why nothing is getting done in our nation’s capital, and is not a precedent we want to set here in Maine.

While the Democrats are posturing, Republicans will be voting for tax relief to support our businesses, support Maine’s workers and support our teachers.


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