Posted by: Democratic Thinker | September 1, 2009

Possible Maine Sales Tax Repeal

 Kale Padgitt with The Tax Foundation reports on efforts to repeal Maine’s state sales tax. Padgitt’s commentary argues that the tax is flawed because it exempts some businesses and not others. See excerpt:

The Tax Policy Blog.

September 1, 2009

Neutrality for All

 by Kail Padgitt

An editorial ran yesterday in support of a referendum to repeal Maine’s tax reform effort under the title- Wrong place, wrong time for Maine tax.

It’s tough for small business owners just over the New Hampshire border in Maine. They compete for that customer dollar with a state that has no sales tax and often watch as Mainers seep over the border for everything from a loaf of bread to major appliances. Maine ranks No. 40 among states for the worst business climate, according to the nonprofit Tax Foundation.

A quick refresher on the Maine’s tax reform, the legislature lowered the income tax rate and reduced the number of brackets from 4 to 2.  The revenue neutral reform expanded the sales tax base to include a number of services.   Both of these should be considered as positive steps for Maine and if fully implemented will likely lead Maine out of the bottom 10 states on the State Business Tax Climate Index.

(See complete commentary at original site)