Senator Doug Smith to Taxation Committee: Cut Maine’s Income Tax In Half

FOR IMMEDIATE RELEASE

MARCH 5, 2007

AUGUSTA – Senator Doug Smith, of Dover-Foxcroft, testified before the Legislature’s Taxation Committee today in support of his bill to cut in half Maine’s personal and corporate income tax. LD 569, “An Act to Reduce Maine’s Income Tax by 50 Percent,” is a cornerstone of an economic development package he has proposed to stimulate Maine’s economy.

In his testimony, Sen. Smith went into detail about Maine’s rich industrial history and her vast supply of natural resources. He noted, however, that in recent decades Maine’s tax burden has made it increasingly difficult to adapt to a changing economy that has intensified regional, national and global competition. Pointing out the unfulfilled need for Maine government to establish a strong partnership with business and industry throughout the evolving national and global economy, Sen. Smith said “Unfortunately, Maine has, at least until now, been a very reluctant partner and is very resistant to the kind of change to its economic policies that have been required in order to help keep Maine’s economy growing.”

The Senator pointed out that reducing the state income tax is a positive step that the Legislature can take to quickly and directly improve Maine’s business climate; more so than any other tax reduction policy. He submitted this income tax reduction bill, in part, to facilitate a discussion around creating sound tax policies to improve Maine’s economic standing. “LD 569 opens that discussion and affords this committee the opportunity to begin to redesign Maine’s tax policies to achieve the goal of greater global competitiveness in order to create the jobs and opportunity that our children and grandchildren will need to live here in the years to come,” he said.

Affirming his eagerness to work with the Taxation Committee, Sen. Smith closed his remarks with optimism. “I stand ready to work with this committee to begin the process of fashioning a new tax policy based on a reduction in the Maine income tax on the order of magnitude called for in LD 569 as an important first step in bringing Maine’s economic policies in line with 21^st century global economic realities and to assure that Maine’s economy will grow and produce the jobs needed for the future.”

“An Act to Reduce Maine’s Income Tax by 50 Percent” is a chief component of Sen. Smith’s economic development package he will be championing throughout the 123^rd Legislature. The other aspects of this package include the creation of two high level, private sector led, independent councils; one to review and monitor the costs of the current regulatory burden on new and existing businesses, and another to examine the current high cost of electricity facing the people of Maine. A fourth bill 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.

Sen. Smith represents District 27, which includes all of Piscataquis County and parts of Somerset and Penobscot Counties. He can be reached in Augusta at 287-1505, in Dover-Foxcroft at 564-8819 or by e-mail at dsmith@kynd.net.

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