MHPC Supports Governor's Decision to Veto R&D Bond‏

 

Legislature should uphold veto and reaffirm commitment to fiscal responsibility

 

 

 

PORTLAND – Lance Dutson, Chief Executive Officer of The Maine Heritage Policy Center, today issued the following statement in support of Governor LePage’s decision to veto a bond for “research and development”:

 

“Governor LePage, Senate President Raye, and Speaker Nutting have made admirable strides toward a more fiscally responsible state government since they took over in 2010.  From regulatory reform to tax cuts, and from pension reform to health insurance reform, this legislature and this governor have taken bold steps that will save every Mainer money and help this state’s economy get back on track.

 

“Addressing the long-term problems with unfunded state employee pensions saved the taxpayers over $1 billion, and reduced yearly expenditures by hundreds of millions of dollars. That’s real money that can be used to reduce taxes and maintain crucial services for Maine’s less fortunate.

 

“Now is not the time for this legislature to turn its back on this kind of solid fiscal responsibility. The people of Maine are firmly behind these reforms, and they don’t want to see us turn back now. The Governor was right to veto this bond, and the legislature should uphold his veto. We can’t borrow our way into a stronger economy, and our businesses will benefit far more from a fiscally solvent government with lower taxes than by having our elected officials continue to pick winners and losers in the marketplace.”

Maine Media's Manipulation; MHPC: Newspapers defend MaineHousing expenses despite OPEGA report‏

 

May 30, 2012

Dear friends,   Sometimes, reading the Maine newspapers is like being transported into an alternate universe.   This weekend was a great example. After the Government Oversight (OPEGA) report confirmed that Maine State Housing Authority had spent over $400,000 on contributions and donations and more than $44,000 on “staff celebrations”, that former director Dale McCormick had personally been reimbursed for over $50,000 in travel costs and that she was reimbursed for nearly $10,000 of non-business meal expenses, Maine newspapers quickly conjured up a far different picture.   Here are a few headlines:    Bangor Daily News: “Watchdog agency finds no wrongdoing at MaineHousing after months of furor” Portland Press Herald: “Housing authority probe finds no fraud”  MPBN: “MaineHousing Review Finds no Evidence of Wrongdoing”   That’s the spin from the Maine media. Now here are the facts:   -       OPEGA found that at least $458,410 was spent between 2007 and 2011 on “contributions specifically for sponsorships, donations, and membership.”   -       The report found that former director McCormick incurred at least $50,000 in reimbursements for travel and meals in just five years. That total included at least 40 out-of-state trips and two international trips.   -       In all, 62 MaineHousing staff members attended 89 conferences in just five years between 2007 and 2011. The total cost exceeded $115,000.   -       The report also stated that receipts for travel, meals and lodging were not always provided, leaving the door open for fraud.   -       McCormick spent, or was reimbursed for $9,625 in meals that took place when she was not travelling and when no business purpose was documented.   -       MaineHousing spent $309,400 on “teambuilding, recognition and appreciation, and wellness incentives,”according to the report. This total includes more than $70,000 in gift cards, awards, gift, flowers and coffee. Another $106,000 was for staff training including “leadership” and “diversity training.”   -       Staff “celebrations” costs taxpayers a total of more than $44,000 in just the five years OPEGA looked at. OPEGA questioned the practice, noting that, “the frequency with which these expenses were incurred cause us to question whether they were all truly necessary.”   -       The OPEGA report also highlights a purchase of $17,412 for artwork for the MaineHousing offices. The art was purchased from Greenhut Galleries, in Portland. Greenhut Galleries is owned by Peggy Greenhut Golden, who previously worked as the head of the Maine Art Commission under former Governor Angus King.   -       Also of concern to OPEGA was $3,500 in bonuses given to vendors. Also, former director Dale McCormick used MaineHousing funds to pay for consultants to accompany her to conferences associated with MaineHousing’s “carbon project.” The OPEGA report does not give details, but does highlight a 2008 conference when McCormick was reimbursed $3,245, some of which covered the cost of a consultant attending the New York carbon conference. To read more about the OPEGA report findings, click here.   Now, let’s read that headline again: “Watchdog agency finds no wrongdoing at MaineHousing”   I’m not sure what the Bangor Daily News would regard as ‘wrongdoing’, but wasting hundreds of thousands of taxpayer dollars on travel and meals that have nothing to do with the function of the agency comes pretty close to ‘wrongdoing’ in my book.   In fact, the OPEGA report doesn’t even get into the potential millions in wasted money on failed carbon-trading schemes. All this, while 6,500 families sit on a waiting list for affordable housing, and hundreds of Maine families go without heating assistance.   Earlier this year, former Maine Housing Director Dale McCormick said “People will die” because Maine Housing lacked enough funds to provide heating assistance to those who need it. The average LIHEAP recipient in Maine receives roughly $800 a year for heating assistance.   This small sample from OPEGA shows McCormick chose to spend well over $1 million on non-essential travel, meals, staff celebrations, bonuses, gift cards, and other items – every dollar of which could have gone to help poor Mainers heat their homes.   That’s more than 1,000 Maine families that did without heating assistance because McCormick chose to do business this way.   This is just the tip of the iceberg. Those in the media that try to portray this report as somehow positive for the previous management of Maine Housing are simply living in a different reality, and the more details that emerge, the more evident it will become how truly out-of-touch Maine’s newspapers have become.   I’d like to mention one exception to this – the Lewiston Sun Journal. Editor Judy Meyer today wrote a fair piece about the report, pointing out the limited nature of the OPEGA inquiry, and rightly noting that expenditures at Maine Housing were out of order. We don’t always agree with the Sun Journal editorial board, but it’s a relief to see that at least one of Maine’s daily papers refuses to drink the left-wing Kool-Aid.   The coverage of this report shows more than ever why we need to keep constant pressure on the press. The Maine Heritage Policy Center will continue to fight for accountability in government, and for truth in the media. We won’t let up, because your tax dollars are too important, and the stakes for our state are too high.   Thanks so much for your support,   Lance Dutson Chief Executive Officer The Maine Heritage Policy Center

 

About MHPC

The Maine Heritage Policy Center is a 501 (c) 3 nonprofit, nonpartisan research and educational organization based in Portland, Maine.  The Maine Heritage Policy Center formulates and promotes free-market, conservative public policies in the areas of economic growth, fiscal matters, health care, education, constitutional law and government transparency - providing solutions that will benefit all the people of Maine.  Contributions to MHPC are tax deductible to the extent allowed by law.

Conservatives Offer Solution For U.S. Budget: The Morning Bell:

Morning Bell: A Glimmer of Hope for the American Dream

Mike Brownfield

May 17, 2012 at 8:57 am

Yesterday in the Senate, America bore witness to the glaringly obvious division in Washington, as stark as the contrast between high noon in the desert and midnight in the mountains. On the one hand is Majority Leader Harry Reid’s (D-NV) failure to pass a budget over the past three years. And on the other hand is leadership from conservative senators and representatives who have put forward serious proposals to rescue America from its debt and spending crises.

That division was laid bare inside the Capitol yesterday afternoon as the U.S. Senate voted 99-0 against President Barack Obama’s budget — a plan that spends more, taxes more, and slashes our military, all without making any attempt to reform America’s entitlement mess.

Compare the President’s proposal — and Reid’s total lack of a proposal — with the four plans offered by conservatives in Congress, chief among them being Senator Mike Lee’s (R-UT) budget, which mirrors the bold and thorough reforms The Heritage Foundation first proposed in its Saving the American Dream plan. That includes limiting the size of the federal government, reforming entitlement programs, and simplifying the federal tax code in an effort to restore our nation’s economic prosperity and ensure that future generations are not saddled with today’s debt.

Also important are plans proposed by House Budget Committee Chairman Paul Ryan (R-WI), Senator Rand Paul (R-KY) and Senator Pat Toomey (R-PA), all of which acknowledge that America is facing a fiscal crisis that cannot be wished away, taxed away, or passed on to future generations. Though the Senate did not pass any of those plans yesterday, each of them garnered significantly more support than the President’s “alternative,” which did not even win one vote from his own party.

Continue Reading More.

MHPC Luncheons in Portland and Rockport - "ObamaCare: Maine's Stake In The Fight"‏

Please Reserve Your Space Today,

If You Have Not Already Registered

The Maine Heritage Policy Center

invites you to attend

“ObamaCare:

Maine's Stake In The Fight”

with

  

Mr. Joel Allumbaugh

Director, Center for Health Reform Initiatives

The Maine Heritage Policy Center

Portland

● 12:00 p.m. to 1:30 p.m. ●

Thursday, May 24, 2012

DiMillo’s On the Water

25 Long Wharf, Portland

Click Here To Register

MHPC Member: $17 per person, inclusive of tax and gratuity.
Non-Member: $22

Rockport

● 12:00 p.m. to 1:30 p.m. ●

Tuesday, June 5, 2012

Samoset Resort

220 Warrenton Street, Rockport

Click Here To Register

MHPC Member: $20 per person, inclusive of tax and gratuity.

Non-Member: $25

   

For more information, please contact Amanda Clark at aclark@mainepolicy.org

or by phone at 207-321-2550.

About MHPC

The Maine Heritage Policy Center is a 501 (c) 3 nonprofit, nonpartisan research and educational organization based in Portland, Maine.  The Maine Heritage Policy Center formulates and promotes free-market, conservative public policies in the areas of economic growth, fiscal matters, health care, education, constitutional law and government transparency - providing solutions that will benefit all the people of Maine.  Contributions to MHPC are tax deductible to the extent allowed by law.

INVITATION: Lance Dutson to speak in Auburn on "Eliminating Maine's Income Tax"‏

AUBURN - MHPC members are invited to attend a presentation, "Getting To Zero: Beginning The Discussion on Eliminating Maine’s Income Tax," at 6:30 p.m. on Thursday, May 10 at the Hilton Garden Inn in Auburn.

 

Lance Dutson, CEO of The Maine Heritage Policy Center, which is proposing to eliminate the income tax, is the guest speaker. The event is hosted by the Affordable Gov't Now Coalition, along with state legislators and legislative candidates.

 

The cost is $17 for members of MHPC and $22 for guests. Dinner is a choice of Bistro Filet Medallions or Chicken Parmesan.

 

You must call to register. Call Arthur Langley of the Affordable Gov't Now Coalition with a credit card to hold your reservation: 449-1980. No walk-ins.

 

Maine Loses More Than Money; The Maine WIRE: Economic Brief: Mainers Flee to States with No Personal Income Tax

Economic Brief: Mainers Flee to States with No Personal Income Tax

by Scott Moody

In fiscal year (FY) 2009, Maine had the 6th highest tax burden, as a percent of private sector personal income, in the country. The single largest source of Maine’s tax burden comes from the personal income tax which, in FY 2010, constituted 37.3 percent of all state revenue. This large share is driven directly by the top marginal tax rate of 8.5 percent which is the 7th highest in the country.

Of course, this large personal income tax burden comes at an economic price which manifests itself, in part, through the out-migration of people and income to greener pastures. This study examines Maine’s net migration to states without a personal income tax from 1995 (the first year of available data) to 2009 (the latest year of available data) based on data from the Internal Revenue Service.

Analysis of this migration data shows that Maine has lost people and their income to the nine states that have no personal income tax for nearly every year in this time-period. Cumulatively, as shown in Table 1, Maine has lost 11,486 people and $661,274,000 in income. The lost income is a conservative estimate because it does not account for the compounding of in-come over time and the multipliers of the income as it ripples through the economy.

Additionally, this lost income has consequences for Maine’s state and local governments through reduced tax receipts. Table 1 shows that Maine’s state and local governments have, conservatively, lost $87,004,000 over this time-period.

The first step in the long road back to economic recovery is to give these out-migrants a reason to stay or return home. This evidence strongly suggests that eliminating the personal income tax would help level-the-playing-field and give Maine a fighting chance to convince residents to stay put. It would also help Maine’s small businesses and create new jobs.

Voting with Their Feet 

Chart 1 and Table 1 shows how much income, as measured by taxpayer’s Adjusted Gross Income, that Maine has lost between 1995 to 2009 to states with no personal income tax. On average, every year $44,085,000 in income leaves the state to never re-turn. Chart 1 shows that not only would Maine’s net in-migration of income be higher than it was for nearly every year over this time-period, but that the last two years of net income losses would have remained positive.



Chart 2 and Table 1 shows how many people, as measured by taxpayer’s claimed exemptions, that Maine has lost between 1995 to 2009 to states with no personal income tax. On aver-age, 776 people leave the state to never return. Chart 1 shows that Maine’s net in-migration would have been higher than it was for nearly every year over this time-period.



As a result of this out-migration of people and their income, Maine’s state and local governments have also suffered through reduced tax receipts. Table 1 shows that Maine’s state and local governments have, conservatively, lost $87,004,000 in income taxes, sales taxes, property taxes, etc. over this time-period.



Keep in mind that all of the income and tax loss estimates are based on the net out-flow of income in only the year of migration. However, this income is lost forever which means the compounded losses are significantly larger—$1 lost 15 years ago is worth $15 compounded in every year. Also, these income and tax loss estimates do factor in the lost multipliers this money would have had on Maine’s economy as it ripples through the economy—$1 spent may eventually become $3 or $4 in total economic activity. As such, these are very conservative estimates.

Conclusion 

Opponents of eliminating Maine’s personal income tax will, quite predictably, lament the loss of state tax revenue. However, this analysis clearly shows that the loss revenue is significantly lower than commonly assumed. The economic benefits of stemming, or even reversing, the out-flow of people and their income to states with no personal income tax would be a boon to the economy.

On a static basis, eliminating Maine’s personal income tax, in FY 2010, would cost the state approximately $1.3 billion. On a dynamic basis, which would factor in things like reversing out-migration and the creation of new businesses and jobs, the loss in state revenue would be significantly lower. This study only highlights the economic benefits of stemming Maine’s out-migration to states with no personal income tax.

In the near future, a more comprehensive dynamic tax analysis will be performed to get a fuller accounting of the positive bene-fits of eliminating Maine’s personal income tax on taxpayers, the economy, and state and local government. Stay tuned.

J. Scott Moody is the Chief Economist at the Maine Heritage Policy Center, the parent organization of The Maine Wire. He can be reach at jsmoody@mainepolicy.org.

http://www.themainewire.com/2012/05/economic-brief-mainers-flee-states-personal-income-tax/

MHPC: Report Shows Mainers Flee to States with No Personal Income Tax‏

 

Maine loses $661 million in income to other states

 

PORTLAND - The Maine Heritage Policy Center has released a study that shows over 11,000 Mainers have fled to states with no income tax, and they took hundreds of millions of dollars with them.

 

The people who chose to leave Maine from 1995 to 2009 took over $661 million in income to other states. The loss of that income has caused Maine state and local governments to lose at least $87 million in income taxes, sales taxes and property taxes.

 

The actual losses in income and taxes is much higher because its does not account for the compounding and multiplying effects of income over time. Every dollar that is spent often becomes $3 or $4 in total economic activity.

 

The report, “Maine Loses People and Their Income to States with No Personal Income Tax,” by Scott Moody, chief economist for MHPC, shows the desire of residents to migrate from Maine, which has the nation’s sixth-highest tax burden, to states with no income taxes.

 

"Opponents of eliminating Maine’s personal income tax will, quite predictably, lament the loss of state tax revenue," said Moody. "However, the analysis clearly shows that the revenue loss is significantly lower than commonly assumed. The economic benefits of stemming, or even reversing, the out-flow of people and their income to states with no personal income tax would be a major boon to our economy." 

 

“These residents are voting with their feet, and they are taking over $44 million a year with them,” said Lance Dutson, CEO of The Maine Heritage Policy Center. “The evidence strongly suggests that eliminating the personal income tax would help level the playing field and give Maine a fighting chance to convince residents to stay put. Retaining these residents and their income would also help Maine’s small businesses and would create new jobs.”

 

Download full report here (PDF)

It's Just Dollars & Sense: The Maine WIRE: Time to End Maine’s Income Tax

This would require the 'masses of asses' on welfare needlessly to get off the couch and become a productive member of society.  Never mind the 'culture of entitlement' so prevalent now or the pandemic of 'double dippers' strangling municipal budgets.

 

Editorial: Time to End Maine’s Income Tax

Imagine if the State of Maine wrote you a check for $4,000.
 
Every year.

That’s essentially what would happen if we eliminated Maine’s personal income tax. The average family of four would save nearly $4,000 each year.

Think it’s impossible? Think again.

The personal income tax is a leash that pro-government forces have tied around the necks of Mainers for more than 30 years. Maine used to have a thriving economy and booming industries, but we all know that’s history. The startling truth is, the decline of Maine’s economy started at nearly the exact time the state decided to implement the income tax. And it’s wreaked havoc on families and businesses ever since.

Maine consistently ranks among the worst states in the nation for business climate, and we have one of the highest tax burdens in the country.  The income tax plays a huge roll in this dynamic. The fact is, Maine is known as a big-government state that will squeeze every nickel out of its citizens, even to the detriment of the overall economy.

We can take a huge step toward ending this dynamic by eliminating the income tax.

There are basically two factors involved in eliminating the income tax, and giving families their $4,000 a year back. One is the reduction in the size of government, and the other is the increased economic activity spurred by Maine becoming a more business- and family-friendly state.

Maine’s government has grown at an unbelievable rate, far surpassing need, and far surpassing the rate of growth of other, more prosperous states. A startling statistic is that Maine’s welfare system alone grew 78% over the eight years of the Baldacci administration – while Maine’s poverty rate remained relatively flat.

Here’s an even more amazing fact: If we reduced spending to the level it was the day Angus King became governor, we could completely eliminate the personal income tax.

That’s right. Maine’s income tax brings in roughly $1.3 billion a year, 37% of $3.4 billion in total revenues. When Angus King took office in 1994, total state revenues were about $1.7 billion a year. By the time he left in 2002, annual revenues increased more than 65%, almost a billion dollars, to $2.6 billion a year.

If we reduced our government’s size to 1994 levels, we’d save $1.7 billion a year – $400 million more than we would need to eliminate the income tax.

Reducing the size of Maine’s government by 37% can’t be done overnight. We need to take steps to get spending under control, and that means bringing Maine more in line with national averages in areas like Medicaid eligibility and education spending. Maine’s income tax would need to be phased out over a period of years, as state spending is ratcheted back down to reasonable levels.

Once Maine charts a course for eliminating the income tax, economic activity will be stimulated. As our reputation as one of the worst states in America for doing business recedes, and as the nation sees that we are serious about reducing our tax burden, it will become less difficult to convince companies to invest in our state. The increased economic activity that would result has the potential to increase state revenues overall through sales tax, property tax, and other revenue sources that result from increased commercial activity. The uptick in other revenue sources would make the phase-out of the income tax easier, and possibly more rapid. As we get closer and closer to zero percent, this dynamic compounds.

Right now, Maine is caught in a figurative ‘death spiral’ of economic trends. As the people of Maine get pulled into the social services network, this increases spending and decreases private-sector output. The increased dependence on government increases the need for revenue, which increases the tax burden on a shrinking number of private-sector sources. This drives businesses out of Maine, which reduces the number of jobs, which increases the public dependence on government programs. This ‘death spiral’ is an unsustainable dynamic.

Imagine reversing this trend. Imagine a ‘life spiral’, where the decrease in tax burden spurred more economic activity, which allowed us to further reduce the tax burden, which in turn stimulated even more economic activity.

We can create this dynamic by charting a course for a zero percent income tax.
Eliminating the income tax would put Maine into a group of states that are leading the nation in economic growth. These are the states that are currently taking our businesses, taking our retirees, and taking away our children when they graduate from college.

Picture a young couple, just out of college, ready to begin a family, and deciding where to settle down. Right now, this couple can move to an income tax-free state like Florida, with more job opportunities, and use their tax savings to send their kids to private school, take a vacation, or save to start the small business they have dreamed about. But imagine how an extra $4,000 a year would impact their decision to stay in Maine. Imagine how a thriving economy would impact this decision.
Maine lost people and their incomes to the nine states that have no income tax almost every year from 1995 to 2009. This works out to nearly 12,000 people and over $661 million in income lost. Conservative estimates show this out-migration cost state and local government over $87 million in revenue over this time period.

Maine has the opportunity right now to end the exodus of businesses and young people.

Here’s why we know it can be done:

First, we didn’t always have an income tax. It wasn’t until the beginning of the three-decade Democrat dynasty in Augusta that we adopted it.

Second, there are nine other states that function without an income tax, and these states are thriving economically.

And third, the reduction of government necessary to make this happen is not draconian – we merely have to return to the spending levels we had before Angus King and John Baldacci exploded the role of government in our lives.

Over the next several months, the Maine Heritage Policy Center will be rolling out a solid path forward toward eliminating the income tax. We are fortunate that the current administration shares our perspective on reducing the tax burden on our citizens, and the need to create a friendlier business climate. The people of Maine have struggled for long enough, and now is the time to present them with a clear vision for a prosperous future.

That vision is a zero percent income tax, and we look forward to a robust discussion about how to get there in the coming months.

Lance Dutson is the Chief Executive Officer of the Maine Heritage Policy Center.  Email him at lance@mainepolicy.org.

*Note: If you would like to learn more about “Getting to Zero” please consider attending MHPC’s luncheon this Thursday in Portland, Maine at noon for a discussion on eliminating the income tax with Lance Dutson, MHPC’s Economist Scott Moody, and Maine’s Commissioner of Administrative and Financial Services Sawin Millett. Click here for more information and to register.

 http://www.themainewire.com/2012/04/editorial-time-maine%E2%80%99s-income-tax/

Limited Space Available for Portland Luncheon Event: "Getting To Zero"‏

 

Space Is Limited

Please Reserve Your Space Today

If You Have Not Already Registered

The Maine Heritage Policy Center

invites you to attend

“Getting To Zero:

Beginning The Discussion On

Eliminating Maine’s Income Tax”

with

The Honorable H. Sawin Millett, Jr.

Commissioner

Department of Administrative and Financial Services

State of Maine

Mr. J. Scott Moody

Chief Economist

The Maine Heritage Policy Center

Portland

● 12:00 p.m. to 1:30 p.m. ●

Thursday, April 26, 2012

DiMillo’s On the Water

25 Long Wharf, Portland

Click Here To Register

MHPC Member: $17 per person, inclusive of tax and gratuity.
Non-Member: $22

  

For more information, please contact Amanda Clark at aclark@mainepolicy.org

or by phone at 207-321-2550.

About MHPC

The Maine Heritage Policy Center is a 501 (c) 3 nonprofit, nonpartisan research and educational organization based in Portland, Maine.  The Maine Heritage Policy Center formulates and promotes free-market, conservative public policies in the areas of economic growth, fiscal matters, health care, education, constitutional law and government transparency - providing solutions that will benefit all the people of Maine.  Contributions to MHPC are tax deductible to the extent allowed by law.

The Maine Wire: “MHPC gets death threats over Kruger/Cheney story” plus 1 more‏

MHPC gets death threats over Kruger/Cheney story

The Maine Heritage Policy Center Friday received a series of threats by phone, as a result of our reporting on Rep. Chuck Kruger’s Twitter statements supporting the execution of former Vice President Dick Cheney.
The threats were made in three separate phone calls, and may be from the same caller, attempting to change his voice each time.
The caller acknowledges our report on Kruger, and concurs with the sentiment from Kruger’s twitter comments.
“A lot of people think Cheney is a war criminal and he should be executed, because he is a war criminal.”
The caller, after digressing into an angry series of profanities, becomes more aggressive.
“We are happy, happy, happy to go to it with you, just be aware, you started it, and we’ll be happy to finish it.”

“You might as well plaster a [expletive] target on everybody.”
In the subsequent calls, the threats are more explicit. The caller asks MHPC to consider if “I took all of your listeners out in public. See how you like it. See how you like being hunted down.”
“There’s just as many nutjobs on the Left as there are on the Right, did you know that? You know the percentage of gun ownership in Maine is pretty [expletive] high.”

“I’m coming for you, I’m coming..”
The calls came after The Maine Wire’s story received national attention last week. Kruger has since apologized for his comments, and has reported that he has received threatening phone calls as well.
MHPC is working with law enforcement to determine the source of the threats.

Below is the raw audio from the calls. WARNING: The language in these calls is extremely profane.

 http://www.themainewire.com/2012/04/mhpc-death-threats-krugercheney-story/

Sun Journal publishes banned GOP editorial

Posted: 16 Apr 2012 07:34 AM PDT

Kudos to the Lewiston Sun Journal for reaching out to GOP Majority Leader Phil Curtis after we published the news that his column was banned from the pages of MaineToday Media. Curtis’ column is critical of MTM owner Donald Sussman and his wife, Congresswoman Chellie Pingree, and the inevitable editorial slant the newspaper chain would [...]

http://www.themainewire.com/2012/04/sun-journal-publishes-banned-gop-editorial/

Study Shows Maine’s “Rich” are Working Couples, Small Business Owners‏

 

Families and Entrepreneurs make up top earners, income tax hits them hardest

 

PORTLAND – A report released today by the Maine Heritage Policy Center shows that Maine’s high-earning individuals are working married couples with dual incomes and risk-taking entrepreneurs who create jobs. This is in stark contrast to recent cries denouncing supposed “tax cuts for the rich” in response to modest income tax relief passed last year.

 

The report, "Who are Maine’s “Rich?” profiles various levels of income tax filers, and shows that those earners who are in the higher categories are primarily families and small business owners. Mainers who earn $200,000 or more are primarily married (86.6%) and many are business owners (45.2%). Because of the higher income, often a result of business income that is held to cover liabilities and make business investments, these so-called “rich” pay higher effective tax rates than filers who earn less.

 

“This report shows how important a reduced income tax burden is to hard-working Maine families and small businesses,” said Scott Moody, the Chief Economist for the Maine Heritage Policy Center. “The big government advocates on the left are yelling about tax cuts for the “rich” but what they don’t seem to understand is that the people helped most by income tax reductions are entrepreneurs who create jobs.”

 

The study uses a hypothetical situation of two different taxpayers – one is single and makes $50,000 and the other is a family of four who has two incomes, some business income, and some capital gains totaling $175,000. In this scenario, the “rich” taxpayer is taxed on $50,000 in business “profits” that won’t actually be received by the individual, but will instead be invested back into the company. Still, this business income, combined with the dual incomes of husband and wife, leave the “high-income” taxpayer with a 9.9% tax burden as percent of actual income, while the single taxpayer, earning $50,000, has a tax burden of just 5.7%.

 

“What we see consistently is that folks who are taxed at higher rates for their earnings are the very people we rely on to create jobs and move our economy forward,” said Moody. “When the Governor and Legislature did the smart thing and gave these job creators much needed tax relief, the calls came out from the left to “tax the rich” – well I have news for them, the “rich” are Maine small businesses and hard working families.” 

 

Download full report here (PDF)

Ayuh, Censorship Right Here In Maine; MHPC: FIGHT BACK against anti-conservative censorship‏

April 11, 2012

Friends, It’s happening sooner than we thought.   Chellie Pingree’s MaineToday Media papers have already started censoring conservative voices by refusing to run a column by Maine House of Representatives Majority Leader Phil Curtis. Click here to read more about this story >>   When Pingree’s billionaire husband bought the biggest newspapers in the state, we knew it was bad news for conservatives. But we didn’t expect the purge to start this quick. Rep. Curtis is the second in charge in the Maine House, and if the MaineToday papers are going to keep him from voicing his opinion, you can be sure the rest of us don’t stand a chance.   That’s why we need to take action now. We need your help to make sure the conservative voice is not silenced in Maine – please click here to make a contribution to support The Maine Wire.   We started The Maine Wire in December exactly for this reason. We’ve had a huge impact already, and because of your support, we were there to publish the column Sussman and Pingree refused to publish, and make sure conservatives have a voice in Maine’s political discussion.   The Maine Wire is our chance to get the truth out about Maine government. And it faces a harder and harder climb every time limousine liberals like Pingree and Sussman take over another media outlet. Conservatives can’t be left without a voice, and we’re determined to spread the word about free markets and individual liberty far and wide – but we can’t do it alone.   We need your help today to stand our ground against the onslaught of liberal media. Please click here to donate today to make sure conservatives have a strong voice in Maine.   We’re in this fight for the long haul, and we thank you so much for your support. Together, we’ll turn the tide on the crushing growth of government, and make sure censorship like we saw this week doesn’t continue unchallenged.   Sincerely,   Lance Dutson Chief Executive Officer The Maine Heritage Policy Center     PS- Even the liberal New York Times has called out Sussman and Pingree on their media buyout: "Mr. Sussman is now wed to both a member of Congress and one of the largest newspapers in Maine, so the conflict there is manifest. " Please click here today to make sure The Maine Wire has the resources to fight Sussman and Pingree’s propaganda machine

 

About MHPC

The Maine Heritage Policy Center is a 501 (c) 3 nonprofit, nonpartisan research and educational organization based in Portland, Maine.  The Maine Heritage Policy Center formulates and promotes free-market, conservative public policies in the areas of economic growth, fiscal matters, health care, education, constitutional law and government transparency - providing solutions that will benefit all the people of Maine.  Contributions to MHPC are tax deductible to the extent allowed by law.

 

Register Today For MHPC's April Luncheon Events - "Getting To Zero"‏

Please Reserve Your Space Today

If You Have Not Already Registered

The Maine Heritage Policy Center

invites you to attend

“Getting To Zero:

Beginning The Discussion On

Eliminating Maine’s Income Tax”

with

The Honorable H. Sawin Millett, Jr.

Commissioner

Department of Administrative and Financial Services

State of Maine

Mr. J. Scott Moody

Chief Economist

The Maine Heritage Policy Center

Portland

● 12:00 p.m. to 1:30 p.m. ●

Thursday, April 26, 2012

DiMillo’s On the Water

25 Long Wharf, Portland

Click Here To Register

MHPC Member: $17 per person, inclusive of tax and gratuity.
Non-Member: $22

~~~~~~

Bangor

● 12:00 p.m. to 1:30 p.m. ●

Friday, April 27, 2012

Sea Dog Brewing Company

Banquet Center

26 Front Street, Bangor

Click Here To Register

MHPC Member: $17 per person, inclusive of tax and gratuity.
Non-Member: $22

For more information, please contact Amanda Clark at aclark@mainepolicy.org

or by phone at 207-321-2550.

_________________________________________________________________

About MHPC

The Maine Heritage Policy Center is a 501 (c) 3 nonprofit, nonpartisan research and educational organization based in Portland, Maine.  The Maine Heritage Policy Center formulates and promotes free-market, conservative public policies in the areas of economic growth, fiscal matters, health care, education, constitutional law and government transparency - providing solutions that will benefit all the people of Maine.  Contributions to MHPC are tax deductible to the extent allowed by law.