Passing it means lower taxes, <br>more economic opportunity

This November, Maine voters will have the Taxpayer Bill of Rights proposal before them. The proposal provides Mainers with the opportunity to lower their taxes, an action that will promote an environment for greater economic growth and job creation.

Having grown-up in Oakland, I have seen firsthand the economic struggles Central Maine has faced over last decade. Whether it was the Scott Paper Mill Closing in Winslow, or the Dexter Shoe Company closing its Dexter plant, Mainers know the sting of losing good-paying jobs.

While the Central Maine region, just like other areas of the state, has made some progress in rebounding from specific job losses, the state economy continues to fall below its potential.

n According to the latest U.S. Census Bureau data, Maine's level of taxation is almost 25 percent higher than the national average; making it the third highest in the nation.

n More Mainers are on Medicaid than the total number of students in the K-12 education system.

n The Federal Reserve Bank of Boston said recently that in 2005, only two states in the nation saw a decline in economic activity: Maine and hurricane-ravaged Louisiana.

While sobering, these statistics are by no means carved in stone. Mainers can and will overcome these challenges, and in doing so, unleash Maine's economic potential. The key catalyst for overcoming these challenges is the Maine Taxpayer Bill of Rights.

The first step in addressing the high level of taxation is to control the growth in government spending because that determines the level of taxation. The Taxpayer Bill of Rights provides the spending restraint necessary to lower taxes while allowing for a reasonable growth allowance for state and local governmental spending based on inflation plus population growth.

In fact, the Maine Taxpayer Bill of Rights would provide significant state and local growth allowances worth an estimated $191 million per fiscal year. Such a growth allowance ensures your roads are plowed; firefighters, policemen, and teachers are provided pay raises; and programs to protect the needy are appropriately funded.

If lawmakers want to exceed the growth allowance, all they have to do, as they already do with bonds, is ask for the voters to approve the additional spending.

In addition to providing for annual growth allowances, the Taxpayer Bill of Rights gives voters the final say over what new, or increased, taxes and fees are imposed by politicians. This provision provides taxpayers with the added security of knowing what tax is being raised or created. It is reasonable for voters, not politicians, to have the final say over what new taxes or fees are imposed on them.

A portion of tax dollars collected that exceed the growth allowance are put into a budget stabilization fund. Even more excess revenue is returned to the taxpayer in the form of rebates or tax rate reductions. That budget stabilization fund establishes a significant cash reserve in the event of a budget crisis.

Leveling Maine's tax burden is vitally important to allowing Maine employers to be economically competitive with the rest of the nation, or the world for that matter.

A multitude of academic studies have shown that high levels of taxation are a serious impediment to economic growth, and such an impediment is especially great in Maine, where taxes are nearly 25 percent higher than the national average.

The Taxpayer Bill of Rights is a reasonable and effective tool to begin lowering Maine's tax burden. Lowering taxes will allow for the emergence of strong and vibrant local economies that provide good paying jobs for Mainers.

Jason A. Fortin, a graduate of Waterville High School and Bowdoin College, is the director of communications for The Maine Heritage Policy Center.

Reader Comments
Share your thoughts about this story.