Senate GOP Victories Trigger Successful Session

FOR IMMEDIATE RELEASE
June 22, 2007

AUGUSTA – Senate Republicans’ relentless pursuit of government accountability and fiscal responsibility have led to a successful legislative session, in which hundreds of millions of dollars in proposed tax and spend measures, and a major expansion of the state sales tax were defeated.

With the legislative session adjourned until January, Senate Republicans have reflected on the hard fought battles waged in the name of transparency, accountability and the people of Maine.  

In March, Senate Republicans took a leading role in stemming over $2 billion in bond proposals which included lower priority initiatives.  Republicans led the charge during bond negotiations to create a responsible investment package that reflected Maine’s affordability limits and emphasized Maine’s deteriorating infrastructure.  In the end, the $2 billion in proposals were whittled down to a $295 million investment package that prioritized Maine’s roads, bridges, sewer systems and water quality. 

A responsible biennial budget that addresses current funding needs while laying the foundation for a more affordable government in the future was another Republican led victory this session.  The funding plan, which was approved by the Legislature earlier this month, remains under the State’s LD1 spending limit and holds the line on Medicaid spending and taxpayer funded benefits.  In addition, Republicans fought off the $136 million in new taxes proposed by the Governor and $110 million in new taxes Democrats had been pushing for.  The approved State budget contains no new tax increases, which Republicans demanded on behalf of Maine people.

 Assistant Senate Republican Leader Richard Rosen, of Bucksport, explained the importance of these two Republican successes.  “We [Republicans] simply could not accept massive borrowing initiatives and millions of dollars in new taxes,” Rosen said.  “Our infrastructure required improvements for the health and safety of Mainers, and to encourage a growing economy.  The bond package we crafted was affordable, responsible, and necessary.  And, after hearing the demands of Maine people to begin solving our state’s financial problems without increasing taxes, there was no way we could support a budget that contained the millions of dollars in tax increases that Democrats were hoping for.”

Perhaps the biggest Republican success of the legislative session was their role in defeating the tax shift proposal put forth by the Legislature’s Taxation Committee.  The committee’s plan would have provided tax reductions for some Mainers, while subjecting all Mainers to a massive expansion of the sales tax on goods and services that had never been taxed before.  The committee’s plan, which they had dubbed tax reform, was instantly opposed by members of the Senate Republican caucus once details were finally released.  In addition to Senator Dana Dow’s (R-Waldoboro) radio address highlighting the massive sales tax expansion, Senate Republican Leadership called on the Governor to veto the plan if it was pushed through the Legislature. 

 Senate Republican Leader Carol Weston, of Montville, explained her party’s motivation to defeat the tax shift plan.  “The people of Maine made one thing very clear,” she said.  “Mainers want real and tangible tax relief.  They did not ask for a game of chance.  The Taxation Committee’s plan did not reflect what the people have demanded.  Republicans were unwilling to decide which Mainers would win out on reform and which Mainers would lose.  Real tax relief means everybody wins.  This plan would not have provided relief.”

Although these victories are fresh in the minds of the Senate Republicans, the caucus knows their work is not finished.  “There is still a lot to do in the remainder of the session,” Sen. Weston said.  “As we speak there are calls for tax increases to fund more spending initiatives, and there are proposals still on the table that would harm Maine’s small business community.  Republicans will continue fighting to protect Mainers from harmful laws, and will continue advocating for government spending reductions, real tax relief, and creating a more affordable place to live and work.”

CONTACT:

William Thompson                    287-1505 (o)
Communications Director, Senate Republican Office

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