AUGUSTA -- Republican state Sen. David Trahan, a veteran of the people's veto, has emerged as the leader of an effort to repeal a new law that overhauls the state tax system.

Using the name "Still Fed Up With Taxes," Trahan and others took steps this week that allows them to raise and spend money on the campaign.

The name of the new political action committee is a takeoff of a successful people's veto campaign launched last year by Fed Up With Taxes, a coalition that led the effort to repeal new taxes on beverages that would have supported Dirigo Health.

This time around, Trahan and others plan to gather the 55,087 signatures necessary for a people's veto of new a law that lowers income taxes from 8.5 to 6.5 percent, raises the meals and lodging tax from 7 to 8.5 percent, and applies the 5 percent sales tax to new goods and services.

Most Mainers, 87 percent, will see their overall tax burden go down, even after the additional sales taxes are added, according to Maine Revenue Services.

But Trahan, Senate Minority Leader Kevin Raye, R-Perry and House Minority Leader Josh Tardy, R-Newport, have signed on to a people's veto. Trahan said he didn't like the way Democrats passed the bill and he doesn't like the sales tax expansions.

"I don't like how quickly this went through the Legislature," he said. "The House debated it within minutes of it being printed."

Last week, Raye, Tardy and Maine Republican Party Chairman Charlie Webster applied for a people's veto with the Secretary of State's Office. The office has until July 2 to write a question that can be circulated to gather signatures.

Rep. Thom Watson, D-Bath, House chairman of the Taxation Committee, said he doesn't understand why Republicans would want to repeal a law that he said reduces the income tax by 23 percent.

He said he is concerned opponents will reduce the plan to a sound bite that doesn't tell the whole story.

"A general problem with the people's initiative process anyway is people will be asked to answer a very simple question that underlies a much more complex issue," he said.

Also, he said lawmakers have worked on tax reform for two decades, so the contents of the bill that passed was not a surprise to anyone.

Trahan said "you could say that about any bill before the Legislature."

"I think the public deserves a good debate about what's in this bill," Trahan said.

Trahan, who's worked on seven or eight other referendums, said it's unclear whether he and others will have enough time to get the signatures so the question can appear on the November ballot. The group would have about a month to get the signatures.

If they don't get them that quickly, they would have until mid-September, which means the question would appear on the June ballot. The law would not go into effect as planned in January, but would be delayed until after the outcome of the election.

Trahan said he does want to lower the income tax, but he would like the reduction to be phased in over time as the state has resources to pay for it.

The new law passed by Democrats and signed by Gov. John Baldacci is revenue neutral, which means it takes in enough money in increased or expanded taxes to pay for the reduction in the income tax.

The average overall tax decrease for those who see a reduction is estimated to be $162, according to Maine Revenue Services.

Trahan said expanding the sales tax to more services, such as car repairs, will hurt those with lower incomes. And, he said, the elderly who aren't working won't benefit from an income tax decrease.

"I don't think it's good public policy," he said.

Susan Cover -- 620-7015

scover@centralmaine.com