Legislators are under increasing pressure to act on
legislation and it shows in the lengthy list of bills scheduled for public
hearing and work sessions. To free up
more time for committee work, sessions are being held only on Tuesday and
Thursday for the next two weeks.
SESSION
Senate & House Sessions – 10 a.m. Tuesday & Thursday
LEGISLATION
As of today 1,266 bills have been printed.
As of today 1, 335 bills have been printed.
www.mainelegislature.org/legis/bills/bills_127th/billtexts/
Ideas for new legislation include:
- Ensure that tax expenditures create high-quality
jobs (LD 1287) - Establish reducing electric rates and air
pollution as the primary energy goals for the State (LD 1314 – Governor’s Bill) - Require employers of 10 or more workers to offer
individual private savings accounts (LD 1318) - Prohibit public employers from compensating
employees for activity involving that employee’s union (LD 1319)
COMPETING TAX REFORM PLANS
Members of the Taxation committee last Wednesday presented
their views on the Governor’s tax plan (see pgs. 31-43):
- Sales Tax Rate – Keep at 5.5% (Democrats);
increase to 6.5% (Republicans) - Tax on Services – Expand (Democrats &
Republicans) to recreation & amusements except museums; personal services except hair services;
domestic & household services except private waste management; personal
property services except those sold to a business for business use;
installation, repair & maintenance services expect those sold to a business
for business use - Sales Tax Collection Allowance – Eliminate
“breakage” allowance and replace with “collection” allowance of $10 up to $1000
(Democrats & Republicans) - Meals Tax Rate – Keep at 8% (Democrats &
Republicans) - Lodging Tax Rate – Increase to 9% (Democrats
& Republicans) - Individual Income Tax – Create 5 brackets with
more progressive rate structure (Democrats); create 4 brackets with less
progressive rate structure (Republicans) - Estate Tax – Keep current $2 million exemption
or reduce it to $1 million (Democrats); increase exemption to $5.5 million
(Republicans) - Corporate Income Tax – Reduce top rate to 7%
(Republicans & some Democrats); keep top rate at 8.93% (some Democrats) - Corporate Alternative Minimum Tax – Keep AMT
(Democrats); eliminate (Republicans)
On Thursday legislative Democrats released a promotional
document, “A Better Deal for Maine”, touting the benefits of their plan
compared to that of the Governor.
www.speakereves.com/democratic-leaders-unveil-better-deal-for-maine/
A Bangor Daily News
reporter said Friday in a BDN blog that the Governor’s plan and the Democrat’s
plan are “millions of dollars apart”.
According to the reporter’s analysis, the Governor’s plan would reduce
the overall tax burden by $645 million by 2019 “compared with current levels”
while the Democrat’s plan would increase tax revenues by $167 million.
http://bangordailynews.com/the-point/
NFIB will soon ballot its members for their views on the
various tax plans.
MINIMUM WAGE
Key members of the Labor, Commerce, Research & Economic
Development committee continue to explore support for an increase in the
minimum wage. The latest trial balloon
would boost the wage to $9 an hour and include a pre-emption of local ordinances
that dictate a higher wage. NFIB
continues to oppose this ill-conceived effort that could cost small businesses
up to $3,334 per job.
KEY HEARINGS THIS WEEK
Transportation Funding – A hearing will be held April 14 at
1 p.m. by the Transportation committee on legislation that establishes a
commission to “study transportation funding reforms that will promote equity
and sustainability and that will yield the predictable funding levels needed to
support a safe and reliable highway and bridge system” (LD 706).
Sunday Opening – A hearing will be held April 15 at 9:30
a.m. by the Labor, Commerce, Research & Economic Development committee on
legislation that allows grocery stores under 10,000 square feet to be open on
Sundays (LD 855). The current size limit
is 5,000 square feet.
Local Option Tax – A hearing will be held April 16 at 1 p.m.
by the Taxation committee on legislation that authorizes municipal voters to
adopt a local option sales tax of 1 cent above the state sales tax rate (LD
594). Certain big ticket items would be
excluded. NFIB will testify in
opposition to this additional form of taxation.
KEY WEBSITES
Governor – www.maine.gov/governor
Legislature – http://legislature.maine.gov
Bill Status Search – http://legislature.maine.gov/LawMakerWeb/search.asp
Regulations – www.maine.gov/sos/cec/rules/index.html
