Americans for Prosperity Maine Expresses Disappointment Over Tax Increases in State Budget Proposal

June 17, 2013

Augusta – Americans for Prosperity Maine is expressing their disappointment over the tax increases in the current budget proposal approved by the Legislature.

“These calls for more revenue are misguided, misplaced and masking the real motive – to grow state government.  The fact is the state took in more revenue for fiscal year 2013 than for fiscal year 2012,” said Carol Weston, Maine state director of Americans for Prosperity.  “We do not have a revenue problem; we have a spending problem.  It is neither fair nor appropriate to ask the hard-working families and businesses in this state to pay more than they already are.”

The current budget proposal would raise three taxes.  It would temporarily raise the state sales tax from 5 percent to 5.5 percent and meals-and-lodging taxes from 7 percent to 8 percent through June 30, 2015.  In addition, included in the budget proposal is the creation of a working group tasked with identifying $40 million worth of tax exemptions to be eliminated by the end of the year, which amounts to a $40 million tax increase.

“No matter how good the intentions may be to increase taxes in the short term, we all know temporary can easily become permanent,” added Weston.  “Once the state begins to rely on a revenue source, it is incredibly difficult to remove that funding source.  I hope the legislature will reconsider increasing their reliance on raising taxes on the hard-working families in this state.”

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