I am, unhappily, thinking about the new 3 percent Maine surcharge tax on incomes over $200,000.

I have a small residential construction company with two employees that I have operated since 1985. My business income is reported on my personal tax return, so, this tax will apply to me.

I will be subject to the nation’s highest tax rate for this income category. Because of this new tax, I feel like moving.

One option would be to move to New Hampshire and to run my business from there. We are already paying high taxes. The state is trying to get more out of small-business owners, who are actually working hard and making money.

This tax will have a negative impact on our overall tax base by making the state less competitive. Business owners will either move away or choose to work less.

If small businesses are strangled, the state will eventually lose revenue from them. Then the pool from which to get taxes will get smaller and smaller.

People who are going into new businesses and ventures will decide to locate somewhere else.

Maine already has a tough time keeping young workers, and this is certainly not going to help.

It’s sending the message that Maine is not a pro-business state. And, if business isn’t supported, there are fewer jobs. More people will be applying for federal and state assistance.

I belong to the Maine Chapter of the National Home Builders Association, so I know many people who would be negatively affected by this tax. We need funding sources for education, as it is the key to our futures. However, there are ways to secure the necessary revenue for education without hurting small businesses.

A repeal of the 3 percent surcharge is needed now.

Glenn Farrell

Cape Neddick

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