Strange Bedfellows: Republicans Are Joined By Greens In Opposing Maine Tax Reform

If the endorsement of the Wall Street Journal editorial board and The Economist magazine weren't enough to let the Maine Republican Party know they were wrong in opposing the Democrats' tax reform, this should be the final sign needed. The GREEN PARTY...yes, the party of Ralph Nader, Jello Biafra, and Pat LaMarche...is joining the Republicans in opposing the reform by calling it a "flat tax."

A quick recap of the reform: it would simplify the current four-tiered progressive income tax code that ranges up to 8.5% for the top bracket by cutting it to 6.5% for families earning under $250,000 and 6.85% for everything above that. To make up for the lost revenue, it expands the sales tax to cover previously exempt favored industries such as amusements, repairs, tourism, etc. and raises the tax by 1% on lodging and meals. So basically, it makes the tax code simpler, flatter, and broader. In essence, more fair and a step in the direction Republicans supposedly want.

Lower and flatter income taxes are always a good thing because it creates incentive for workers to keep working. Broader taxes mean that the state will avoid the trap seen in California, New York, and some European countries, whereby all the taxes come from a small percentage of the population and once a recession hits, revenue plummets.

Republican opposition to this package is based solely on politics. They smell blood, thinking that the Democratic control from top to bottom within the government during a recession will allow them to retake the Blaine House for the first time in 16 years and the legislature for the first time in 30+ by whipping up populist rage. And it is this kind of petty, anti-ideological politics that explains why they haven't.

Read More: http://kennebecjournal.mainetoday.com/news/local/6664630.html