J. Dwight: Steven Moore's 'Maine Miracle' is Really a 'Maine Mirage'
Moore and the editorial board at the WSJ were recently fooled by the Baldacci Administration claim to be “encouraging and rewarding hard work” by lowering Maine's income tax rate (LD 1495). Read More...
From: "J Dwight"
Subject: Maine Mirage
Date: Wed, 24 Jun 2009
Maine Mirage
I can understand Steven Moore’s eagerness to find a miracle‚ in the desert of Obamanomics.
Moore wrote that it was a "Maine Miracle" (WSJ Tuesday June 23, 2009), but it was a "Maine Mirage". Beneath the shimmering oasis of lowering the tax rate from 8.5% to 6.5% is a dead sea.
But, like a parched traveler, Steven Moore and the editorial board at the Wall Street Journal were recently fooled by The Baldacci Administration claim to be “encouraging and rewarding hard work” by lowering of the income tax rate in the State of Maine from 8.5% to 6.5% (LD 1495).
It is massive quagmire of sticky and stinking rule changes, that even Christina Ward, the head of the Income Tax division of the Maine Revenue Service admits even she doesn't understand.
The result of LD 1495 is a direct attack on the over 150,000 self employed and small business owners who are the providers of the services that will bear the burden of this new law.
This law will not decrease income tax revenues; it will increase them on the most productive citizens of Maine.
These small and self-employed business owners in the state of Maine that itemize on their tax returns. For them the changes will increase their income taxes from 100% to 1000%, depending on the application and impact of the reduction of itemized and standard deductions.
The law also imposes new taxes on a broad range of activities provided by the service sector in Maine, which are primarily self-employed and small businesses in Maine.
New taxes on small business and self-employed are also being leveled and expanded in this law.
Including lawn care, theater tickets, installation, maintenance and repair services (including plumbing, roofing, auto, and increases the tax on hotels, meals and drinks bought while eating out. Taxicab and airport limousine services, car and truck rentals and home and apartment rentals. Not to mention long distance telephone services.
The burden of compliance with these new taxes fall disproportionately on these same small business owners.
Maine has earned a reputation to being anti--big-business, now it will also be known as anti-small and self-employed business people.
Unlike the hopeful and parched in the desert of Obama-nomics, we the small business people in the State of Maine are not fooled by miracles‚ or mirages that originate in Augusta.
J Dwight
President & Chief Investment Officer
Dwight Investment Counsel
120 Orchard Dr.
Wilton, ME 04294
http://www.buffettstyle.net
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