OPENING SALVO: Maine beverage tax foes hit airwaves
BY SUSAN M. COVER
Staff Writer Kennebec Journal & Morning Sentinel 08/27/2008

AUGUSTA -- Richmond convenience store owner Gary Emmons said he's not comfortable in front of a camera, but he felt compelled to appear in a new television commercial urging people to repeal a state law that puts taxes on beer, wine, and soda to pay for the state's health insurance program.

The group Fed Up With Taxes paid for the ad, which is targeted to run this week and next during both national political conventions.

"I just talk to a lot of people, and people aren't looking for another tax on convenience store staples, especially flavored water," said Emmons, who owns Gary's Quik Stop and Exit 43 Quik Stop, both in Richmond.

The ad is the opening salvo in what is expected to be a vigorous campaign on Question 1, which asks voters if they want to repeal action taken by the state Legislature earlier this year.

Lawmakers passed a new law in April that places a 1.8 percent tax on paid insurance claims and adds taxes to soda, beer, wine and flavored water. The taxes vary by product, but would add 11 cents to a liter bottle of soda, 16 cents to a six-pack of beer and 7 cents to a bottle of wine.

The $75 million raised by the taxes would help support the state's Dirigo Health program, which provides health insurance to about 18,000 people in Maine.

Fed Up With Taxes, a coalition of beverage industry groups, Maine businesses and the Maine State Chamber of Commerce, organized shortly after the new law was passed to pursue a people's veto. The group gathered well more than the 55,087 signatures needed to get the issue on the Nov. 4 ballot.

A group called Health Coverage for Maine, which opposes Question 1, has sent people door-to-door to try to explain its side of the issue to voters, said Jesse Graham, spokesman for the group. They, too, hope to run television ads, but anticipate being outspent by their opponents.

"I do think, in my quick look at political action committee reports, they have a lot more money and will continue to have a lot more money," he said.

Graham said once voters understand the issue, they will reject Question 1.

"Maine people agree with us," he said. "They want to see affordable health insurance that covers their family and friends. A few cents on beer, wine and soda are one of the ways we're going to get there."

Newell Auger, a beverage industry lobbyist who is leading the Fed Up With Taxes coalition that supports Question 1, said they began airing the ads during the national political conventions to get their message out early.

"This is going to be a pretty crowded election cycle," he said. "We want people to know they should vote 'yes' in November."

Auger said he did not know how much the group plans to spend on advertising.

He said the amount would be disclosed in filings with the state ethics commission. The next filing deadline for ballot question committees is Oct. 10.

Reports filed in July from both sides showed Fed Up With Taxes with a huge fundraising advantage: They raised $375,000 in the most recent reporting period, while Health Coverage for Maine raised about $25,000.

Emmons said while he supports efforts to make health insurance available to everyone, he doesn't see the connection between beverage taxes and Dirigo Health.

"The state just keeps taxing and taxing and taxing," he said. "They aren't taxing the proper thing for the end result."

Susan Cover -- 621-5642

scover@centralmaine.com

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