Maine Tax Code People’s Veto, Question 1 

Next month, Maine voters will decide if they want to keep on the books, a new law that lowers the income tax rate and increases some sales taxes.That question will be the topic of discussion at a forum in Winterport Wednesday night.Meghan Hayward spoke with the two people who will be on that panel.The Maine Tax Code People’s Veto, Question 1, will appear on the June 8th ballot.It reads,Do you want to reject the new law that lowers Maine’s income tax and replaces that revenue by making changes to the sales tax?A “Yes” vote would overturn the law. A “No” vote keeps the tax changes.Sponsors of the referendum say although the overhaul is designed to lower income tax, that’s not the case.”Ultimately the taxpayers in the state of Maine will pay higher income tax then they do currently. “They say by 2013, there will no savings on income taxes and Mainers will still be faced with all the new sales taxes.”For instance, if your family car breaks down on the way to work and you’ve got to take it and have it repaired, you’re going to have to pay sales tax on the labor to repair that car.”Opponents of the referendum say the overhaul package will reduce the tax burden on Mainers by 55 million dollars.”It will spur economic development by lowering that top rate. It will help stabilize revenues so we have more stability in our economy in the future.”They say it’s change supported by many business groups.”The State Chamber of Commerce, the Portland Chamber and the Bangor Chamber.”The change would expand the sales tax in three areas, amusements and recreation, repair services.”And the third area is something called personal property services which involve a collection of things from dog grooming to dry cleaning.””I certainly hope the people of the state of Maine study this bill out and understand what this does.”Wednesday’s forum will be held at the Victoria Grant Civic Center in Winterport and starts at 6:30.