Tax expert urges thrift
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BY SUSAN M. COVER
Staff Writer
Kennebec Journal & Morning Sentinel 10/20/2009

AUGUSTA -- A Washington, D.C., tax policy director said Monday that Maine can improve its economic climate by imposing controls on government spending.

Jonathan Williams is director of the Tax and Fiscal Policy Task Force for the American Legislative Exchange Council, a membership organization of state legislators that works to promote economic growth and limited government.

The council's latest report, "Rich States, Poor States," ranks Maine 24th in economic performance and 47th in economic outlook.

"That ranking by itself should be alarming and shocking," he said during a State House news conference. "But to say Maine's economic outlook is worse than that of Michigan today is truly pretty hard to believe."

He said income taxes, property taxes and estate taxes all add up to a high tax burden in Maine.

Williams, who traveled with several members of the Yes on 4 campaign to events in Augusta and Bangor, urged voters to support Question 4 on the Nov. 3 ballot, a revised version of the Taxpayer Bill of Rights that was rejected by voters in 2006.

The measure would put in place limits on the growth of the state General Fund, Highway Fund and other special revenue funds. The growth would be limited to increases in population and inflation.

The bill calls for voters to approve state tax increases, state spending that exceeds the limit, and the annual motor fuel tax increase. At the local level, spending that exceeds the limit would also need to be approved by voters.

The American Legislative Exchange Council report is a counter-argument to a September report from the Center on Budget and Policy Priorities, also of Washington, which called TABOR unnecessary because the state already has spending limits in place.

Robb Gray, of the budget center, said it hurt Colorado, the only other state with TABOR in place.

"When you look at the data, it's extremely clear that, essentially, TABOR did lead to lower income growth in the state of Colorado and did not help the economy in that state," he said.

Also Monday, Maine Equal Justice Partners released an online video that features a firefighter who says he's worried a cap on municipal spending would cut public-safety budgets.

Sara Gagne-Holmes, executive director of Maine Equal Justice, said her organization's primary concern is that spending caps would hurt the low-income people they support.

"Our largest concern is the impact TABOR II will have on Maine's safety net and how it will affect low-income individuals," she said.

Question 4 is one of four citizen initiatives on the Nov. 3 ballot. In total, voters will decide seven statewide ballot questions and some local races this year.

Republican gubernatorial candidate Bruce Poliquin spoke in favor of Question 4 at the Augusta event and announced later in the day he is spending more than $100,000 to help pass the citizen initiative.

"We must take back our government, starting with limiting and reducing state spending," he said. "The next governor will need the spending limits to help trim government and reduce spending and taxes so that our citizens are afforded more opportunities for a better life."

Susan Cover -- 620-7015

scover@centralmaine.com

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