Income tax repeal

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DisPas
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Income tax repeal

For years (heck, for decades) repealing Maine's income tax has been a pretty fringe idea. LePage has repeatedly flirted with it, but never made it central to his agenda--he never even included it in one of his budget proposals.

Is this one of those ideas that fires up the activist base but never gets implemented because the people who actually study tax policy realize that it would blow an annual billion-dollar hole in the state budget? Or are we in a Laffer Curve situation, in which a repeal of the income tax could increase government revenues by spurring more rapid economic growth?

pmconusa
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The only economic growth in

The only economic growth in the State of Maine comes from government or government subsidized corporations and services, all of which are paid for by taxpayer dollars or borrowing (printing money). I refer to operations such as the schools and other government employment that get increases in wages regularly and corporations such as Bath Iron Works whose only reason for existence is to sell its wares to the government. Operations, such as the MidCoast Regional Development Authority not only subsidize jobs by giving tax breaks to companies setting up business in Brunswick Landing but actually provide these companies with part of the income tax paid by their employees. Then there are corporations that subsidize the operation of the train service and various bus services. Private businesses have either moved to lower taxed locations or stopped doing business altogether, The Cooks Corner mall in Brunswick is a classic case.

Granted that a lot of this spending is that of the federal government but the State is no slouch when it comes to spending and the money for it must come from somewhere and unlike the Federal government, the State cannot borrow without citizen approval. A move to abolish the income tax is pure stupidity, because people still want to provide welfare and healthcare to those who cannot afford it and unless the reduced revenue to government is offset by government's reductions in spending taxes on something else must raise an equal amount of the revenue loss from the income tax. Economics 101, which Lepage and Trump do not understand as well as the majority of the U. S. population. You cannot have your cake and eat it too is a false statement that is, until you run out of flour.

Melvin Udall
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The classic "pies only come

The classic "pies only come in one size" trope.

pmconusa
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Do you have anything to offer

Do you have anything to offer or are you just a critic?

Bruce Libby
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I guess the new coffee shop

I guess the new coffee shop in my city is not one of the only new businesses you speak of since it is privately owned.

Melvin Udall
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Sorry; I forgot that the only

Sorry; I forgot that the only acceptable reply was "yes sir, yes sir, may I have three more bowls full, please."

pmconusa
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Just as I figured, you have

Just as I figured, you have nothing to offer.

Melvin Udall
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I don't wish to steal your

I don't wish to steal your spotlight. Nothing to say sounds like a good match.

Not to mention that you can't pick up on nuance. You're too wrapped up in your own words to think about what others' mean.

Toolsmith
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How does NH pay for services?

How does NH pay for services?
It's not like there isn't a nearby example...

Jasper
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Nuance? Mel you wouldn't

Nuance? Mel you wouldn't know nuance if it slapped you upside your fat, bald head.

Melvin Udall
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Shucks, Lance! You're cute

Shucks, Lance! You're cute when you're angry.

Jasper
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If you truly think Jasper and

If you truly think Jasper and Lance are one and the same, you are fatuous beyond belief.

anonymous_coward
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@Toolsmith: " How does NH pay

@Toolsmith: " How does NH pay for services?
It's not like there isn't a nearby example..."

It's my understanding that the just foist the cost onto the localities, so your property taxes end up higher. Though I don't live there, so I can't confirm.

anonymous_coward
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@Dispas: " LePage has

@Dispas: " LePage has repeatedly flirted with it, but never made it central to his agenda--he never even included it in one of his budget proposals."

LePage is too fiscally responsible for something like that.

pmconusa
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Lepage, like everyone else

Lepage, like everyone else who believes he knows how the economy works hasn't a clue about The Real Economy which is why they think pumping more dollars into the system constitutes growth. The economy grows when you produce more fuel (food) to feed a population which sustains life and the ability to produce work. We have ceased doing that in the mid 1980s and we will soon reach a point where population growth will consume all that we produce. We already import enough food (fuel) to sustain over 50 million but export enough to feed many more, such as those in Mexico who consume the bulk of our corn after we feed the animals and make ethanol. Much of the remainder goes to feed the millions in refuge camps and countries like China and India who do not grow enough wheat to sustain their population. At least the governments in India and China pay for their wheat imports which we have to pay farmers subsidies to grow. Read The Real Economy and weep and then read The Constitution a Document Steeped in History and a Compromise Devoid of Promise to see how your politicians insured the unequal distribution of natures bounty through the tax code.

Melvin Udall
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MU # 4

MU # 4

Melvin Udall
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By the way, NH property taxes

By the way, NH property taxes are high, but in my previous looks, they are in the same range I pay in Maine.

LePage has taken shots at lowering the state income tax, and it has been a goal of his. But you know as well as I do that the chances of eliminating it are nil. Even with the R's in control, they didn't have the guts to do it.

He has lowered the top rate some.

The simple fact about NH is that they spend significantly less per resident than we do.

pmconusa
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Having lived in New Hampshire

Having lived in New Hampshire and paid property taxes there I can attest to the fact that the mill rate is higher than it is here in Maine. The real fact is that New Hampshire spends less for government with their legislature getting only expenses and the only significant federal presence is at the Navy Yard in Portsmouth. Other that that is the teacher's who consume the bulk of the property tax. Yes, there is no income tax and no sales tax but it does have other business taxes to offset its limited government spending.

Europe is way ahead of the U. S. in taxing to pay its government spending in lieu of printing money or borrowing and that is the value added tax which is the fairest tax of all because everyone pays it when they buy anything except unprocessed food.

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