Reducing the overall tax burden for all Maine citizens is my vision for tax reform. Let’s be clear, genuine tax reform is not shifting the tax burden from one individual or group to another. What separates me from my opponents, including Republicans, Democrats and Independents, is that I am the only candidate for Governor that has consistently lowered the tax burden on the people I was elected to serve.
As Mayor of Waterville, I set a goal to ensure property tax reduction each year from the year after I took office without cutting existing city services. By seeking organizational efficiencies, applying sound business principles, and advocating for the best interests of the taxpayers. I succeeded in that goal.
During my tenure as mayor I have worked with the Waterville City Council to:
- Reduce Property Taxes each year,
- Increase the City’s Rainy Day fund from $1 million to $10 million
- Raise our Standard & Poor’s credit rating from an A-minus to an A-Plus.
As Governor, I pledge to emulate the Waterville’s success in lowering property taxes by lowering the tax burden for all Maine citizens. To accomplish this goal, state government will practice the same discipline and fiscal responsibility with the taxpayer’s money that any responsible individual applies to their own personal finances.
Therefore, I will aggressively pursue tax reform measures that will grow our economy and allow individuals and businesses to keep more of their hard earned money.
I will support:
- Reducing the personal income tax rate to a flat 5% beginning at a gross family income of $30,000.
- Reducing the corporate income tax rate to a flat 5% beginning with a pre-tax profit of $30,000 to $500,000 and to drop the rate over $500,001 to a flat 4%.
- Reinstating the indexing of Maine income taxes and contribution deductions to current federal guidelines.
- Reducing the so-called “sin” taxes by at least 25%.
- Requiring that the automobile excise tax be based on the vehicle net purchase price instead of manufacturer’s list price and a reduction of the excise tax of 20% per year there on.
- Eliminating all personal property taxes over four years, beginning in 2012.
- Replacing the current Homestead Exemption program with a broader based program that provides tax relief to all Maine resident property owners.
- Limiting the use of Tax Increment Financing Districts to their original intent, which was to offset the high cost of capital for manufacturing and large commercial projects.
Finally, I will oppose any effort to repeal existing exemptions for goods, services, and labor from the state sales tax. This includes my opposition to Governor Baldacci’s and the legislature’s most recent effort in LD 1495. I will also oppose any effort to implement a local option sales tax.
