In these trying times we should be doing everything we can to keep ourselves and our families healthy. We should also be fighting to keep our local businesses — especially our restaurants — open. With the restaurants that are still running being only able to offer curbside and delivery, employees are ultimately the most impacted by all of this, often times with the owners putting in many extra hours to keep their heads above water.
Our Maine restaurants and service businesses make up the backbone of every corner of our state, from our urban neighborhoods, to our coastal vistas and our rural communities. They are a key component of the booming tourism industry that brings so many to Maine every summer. We need them for when we get back to normal and protecting them now will aid our economy for years to come.
This is why I ask Mainers to join me in urging Governor Janet Mills to immediately suspend the eight percent tax on prepared food from restaurants and service businesses. A business that can reinvest that money into daily operations or making payroll should not have to pay the 8% tax during this crisis. That’s how we can help these businesses survive and hopefully thrive once this pandemic is over.
It’s been estimated that over 15% of restaurants could close across the country before the month is over. One of Maine’s biggest business sectors is tourism. People come to Maine to enjoy our unique food and the friendly service that Maine restaurants provide. I’ve spoken with small restaurants and convenience store businesses in my district and they feel that this temporary policy change could greatly help them continue to operate. These businesses and their employees have been the hardest hit by COVID 19 and they need all the help that they can get. This temporary waiving of the 8% prepared meals tax is a chance to quickly and directly help them with minimal red tape.
Allowing business owners to keep this portion of their profits, or to lower overall costs for consumers to increase business traffic, would serve as a tremendous benefit to them and everyone they employ. For many businesses this could mean the difference between being able to keep an employee and having to lay them off. Many laid off employees are having a difficult time navigating the bureaucracy of filing for unemployment. Meanwhile, checking accounts are running low and people need to pay their bills. Being rehired (even part time) puts money in people’s pockets for them to pay their expenses. Mainers love the dignity of work and all they need is an opportunity.
If we want things to return to normal once this is over, then we need to save the places where memories are made, great times are had, and people leave with a full belly. We need to save the restaurants, bars, and eateries that make Maine special. By doing that we will keep our tourism sector strong long term and help protect a large part of our overall economy.
It’s time to help our local businesses and hardworking neighbors who have served us as waiters, waitresses, and bartenders. We can do that now by suspending the 8% prepared meals food tax and allowing small businesses to reinvest that into their employees and operations. Once we have done that, everyone should order some takeout from their favorite local restaurant to support them through this tough time.
Rep. John Andrews is serving his first term in the Maine Legislature. He represents the towns of Buckfield, Hebron and Paris in District 73.
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