Senator Doug Smith Unveils Economic Development Package

Smith Proposes Series of Bills to Stimulate Maine

FOR IMMEDIATE RELEASE

JANUARY 25, 2007

AUGUSTA – Senator Doug Smith, of Dover-Foxcroft, has submitted a collection of bills for consideration that would, if passed, stimulate the Maine economy to attract new business and investment. The four bills would reduce the cost of doing business in Maine, create separate independent councils to review high regulatory and electrical costs imposed on business by the state, and cut the high cost of health insurance for individuals and business.

One of the bills comprising the Senator’s economic development package would cut Maine’s individual and corporate income tax rate in half for all income levels. If approved, this bill would reduce collections from taxable income for the lowest individual income rate to 1.0%, from 2.0%. For the highest income tax rate, the tax would be reduced from 8.5% to 4.25%. Smith explained, “Reducing Maine’s income tax to half its current level for all taxpayers is an essential first step in improving Maine’s business climate and its ability to compete in the global marketplace.”

The Senator has also submitted two bills that would create high level, private sector led, independent councils. One council would review and monitor the costs of the current regulatory burden on new and existing businesses. The other council would examine the current high cost of electricity for the people of Maine. Each council would be responsible for determining what factors are driving these high costs, draft legislation to reduce the costs, and compel state departments to review their own operations and make changes to reduce government operating costs that are assessed to businesses through fees and other charges that drive up the cost of doing business in Maine, and thereby injure the state’s economic competitiveness.

The fourth bill in the Senator’s package would lift restrictions on health insurance plans and allow Maine small businesses and individuals to have the same options available in other New England states.  Mainers currently pay health insurance rates that are among the highest in the nation.  If approved, this bill would introduce new affordable choices into Maine’s health insurance market that would allow Mainers to select coverage that may be less expensive, more appropriate and, potentially, of higher quality.

“I have proposed these bills as part of a greater effort to make Maine an economically competitive state in the national and global marketplace,” Senator Smith said. “The high costs of living and working in Maine are chasing potential investment away, and limiting our ability to provide good jobs and opportunities for our citizens. As a Senator, it is my responsibility to make decisions that will improve the lives of Mainers, by creating an environment that would allow for greater economic growth and the jobs that would follow.”

Smith concluded by stating, “By introducing these bills, I am taking the first steps towards creating a better business climate, faster job growth and greater opportunity for all Maine people, particularly our young people.”

Senator Doug Smith represents District 27, which includes all of Piscataquis County and parts of Penobscot and Somerset Counties. . He can be reached in Augusta at 287-1505, in Dover-Foxcroft at 717-3360 or by e-mail at dsmith@kynd.net.

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