Friday, June 22, 2007

from the Kennebec Journal
Finding shelter for those who serve their nation
Immigrant recalls her special greeting
State gains $85M in Homeland Security funds
Man arrested after swerve toward cop
School unit in limbo
Rain? What rain?
LEE LATCHES ON WITH THOMAS
Modern camping equipment takes it to the extreme
All of today's:
News | Sports
from the Kennebec Journal
from the Morning Sentinel
Civil War-era flag finds honored position
Residents wonder if the rain will ever go away
FAIRFIELD Sewage plant rejection irks man
Winslow's fireworks guy doesn't mind the obscurity
At holiday derby, the fun is catching
Vets' champion 'very passionate' about her work
Hersom deals with change
Sandals work for outdoor types
All of today's:
News | Sports
from the Morning Sentinel
"This has been one of the most productive legislative sessions in recent history," he said while standing in the House of Representatives.
He listed off accomplishments -- passing a bill to require major changes to the state's school districts, a major borrowing package, a measure to reduce greenhouse gases and a bill to crack down on predatory lenders.
When lawmakers finished their work for the night, House Speaker Glenn Cummings, D-Portland, appointed members of the Taxation Committee to be the official party to ask the governor for his comments.
While greeting them in his office, Baldacci told them to take some time to relax.
"As you embark on it, I hope you enjoy your summer," he said.
During his speech, he thanked the committee for its work, and said he will develop a plan that changes the tax code and reduces spending.
"We will do more to take our case to the people," he said.
Baldacci said there's also more work to do on health care, and that it's his goal to make "Maine the healthiest state in the nation."
He then walked down the hall to the Senate, where he delivered a slightly modified version of the speech. The House adjourned at 10:24 p.m., while the Senate adjourned ten minutes later.
Tax reform dominated debate at the Statehouse in recent days. Here's an excerpt from the tax reform debate which is part of what can be found online at kjonline.com.
Noon: The Senate is debating a motion to kill the major tax reform bill. If they vote in favor of the motion to indefinitely postpone, it will head to the House. A frustrated Taxation Committee Chairman Sen. Joe Perry, D-Bangor, explains that he and others tried to find a way to expand the sales tax base to make it more stable, to extend it to items that are discretionary and to get tourists to pay more of their fair share. The proposal seeks to lower the income tax, while expanding the sales tax to more items.
In the end, Perry said on the Senate floor, last minute questions and a "campaign that has scared the public" killed it.
"We can keep moving it further along, at some point, we have to decide if we're going to do it or not," he said.
Sen. Ethan Strimling, D-Portland, said he hopes Gov. John Baldacci calls back lawmakers for a special session to work once again on tax reform.
Strimling worked with Sen. Richard Nass, R-Acton, to help lay the early groundwork for the proposal.
1 p.m.: The Senate tax reform debate rages on. The pending motion is to kill the bill, which proposes to lower income taxes and expand sales taxes. Judging by the debate, the motion will pass.
Some of those who spoke said lawmakers are out of touch with the people they serve.
"This is my ninth year as a legislator and I've never spent the night in Augusta," said Senate Minority Leader Carol Weston, R-Montville. "The longer you stay in the building, the crazier you get."
Weston said lawmakers failed to get citizens involved.
An angry Taxation Committee member Sen. Ethan Strimling, D-Portland, responds to Weston by saying he too has never spent the night in Augusta.
He said he keeps in touch with the people he serves, and took exception to comments that the tax plan won't save people money.
"Maine people will not get a reduction in taxes today when this plan fails," he said. "That is simply the truth."
Assistant Senate Majority Leader John Martin, D-Eagle Lake, said the Senate action means there will be no tax reform this year or next.
Lawmakers have to face voters again in November 2008.
"If anyone in this body thinks any Legislature can pass a tax package in an election year, you haven't been in the Legislature as long as I have been," he said.
Martin said lawmakers must come back in a couple of months to try to work it out, before campaigns begin.
After the Senate vote, the bill heads to the House. Will they try to revive it?
2 p.m. Now that the Senate has voted 26-9 to kill the tax reform bill, the House is considering an amendment in hopes of keeping it alive. Rep. Thomas Watson, D-Bath, is offering an amendment that he believes addresses nearly all of the objections raised in the Senate.
The bill seeks to lower the income tax and expand the sales tax. His amendment exempts some of the most controversial services that would have been taxed -- snowplowing, plumbing, haircuts and a long list of other services.
Watson's amendment also makes changes to the real estate transfer tax proposal and would lower the income tax to 6.5 percent.
"Nothing comes easy and important and historic things, if you will, come the hardest of all," he said. Taxation Committee Chairman Rep. John Piotti, D-Unity, tries to convince fellow House members to look beyond lobbyists.
"What's happened the last few weeks is all about politics," he said. "We have all been manipulated. Special interests, with one narrow interest, tells you you have to fight this."
He makes a prediction: "If you care about tax reform, this is our last chance. No one in these halls is going to take up this charge again and put in what this committee has put in knowing failure is the result."
3 p.m. The tax reform ball is back in the Senate's court. A House vote of 80-59 to pass an amended version of tax reform sends the bill back to the Senate for consideration.
Here's a quick recap: Last week, the House passed a tax reform bill that lowers the income tax and expands the sales tax. Earlier today, the Senate voted to kill it.
The House just voted to support an amended version that takes out some of the more controversial items that would have been subject to the sales tax, such as haircuts and snowplowing.
That means the amended version of the bill now goes back to the Senate.
During House debate, Rep. Meredith Strang Burgess, R-Cumberland, said she needs more time to consider such a big change in tax policy.
"This amendment hit my desk at 1:30," she said. "To me, this is about process, it's just we've run out of time."
Taxation Committee member Rep. Kathleen Chase, R-Wells, encourages representatives to support the amendment, although she knows not everyone agrees. "We all are going down the same road, we're just in different cars," she said.
4 p.m. There's a lot of paper moving back and forth. And it isn't all tax reform related.
As they push toward the end, the House and Senate are taking votes on dozens of bills.
They've given final approval to a bill that directs the Attorney General to write rules to outlaw the sale of flavored cigarettes and cigars. Sorry, no more grape cigars for you. They held over until next year several bills, including one that seeks to allow slot machines on Indian Island and one to create the position of public access ombudsman.
Mostly, though, House Democrats are trying to convince their Senate colleagues to support the amended version of tax reform. The Senate bell is ringing.
5 p.m. Tax reform died sometime around 4:20 p.m.
Despite efforts by House Democrats -- and some Senate Republicans -- the Senate voted to stick with its original position, which is to kill the bill. Officially, since the House and Senate don't agree, the bill is dead for this legislative session.
During debate, Sen. Peter Mills, R-Cornville, gives a passionate speech urging Senators to support the House amendment, which calls for a more modest expansion of the sales tax with a reduction in the income tax.
"Every pundit, egghead, geek, commentator, economic development expert who opines on the tax code has said we ought to do two things that are so obvious it's like egg on your face," he said. "Expand the base of the sales tax and cut the income tax."
He said lawmakers can't be concerned with pleasing everyone. "I don't think this is easy politics," he said. "This is taking your medicine time."
Others -- Sen. Richard Nass, R-Acton, among them -- said something is missing.
What about reducing spending?
Susan Cover -- 623-1056
scover@centralmaine.com




Reader comments
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Only a politician would list going further into debt as a positive accomplishment.....along with the global warming bill that will raise our electric rates and accomplish little else....and lending regulations that, at best, will make it harder for people with borderline credit to buy a home.
Well done Augusta....at least I'll now know maple syrup when I see it.report abuse
When is State government going to crack down on its being a predatory borrower? State government is constantly borrowing monetized debt (money) based on the State's ability to coerce every man, woman and child into participating and contributing (by the use of force and arms if necessary) to governments "tax schemes", a regular rob Peter to pay Paul piece of work in progress.
These government promises of tax relief sounds like the promises of a married person saying that they are going to stop cheating on their spouse, but in reality they are just too weak and addicted to cheating to break free from their bad habits and their promises just aren't worth listening to. You can't change a cheater and you can't get todays government to stop their tax and spending habits.report abuse
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