WSJ: Maine Miracle

[sugarcrook]

It might be time to maintain a residence in Maine:

http://online.wsj.com/article/SB124571672694839297.html

[herm]

maine is a terrible place to live.
no one should move there
lots of tourists

[sugarcrook]

I don't think it's so bad.  I lived in Downeast for a few years and Portland is almost like being back in the US. 

[ducpainter]

I don't think it's so bad.  I lived in Downeast for a few years and Portland is almost like being back in the US. 

Portland isn't Maine...

It may as well be Boston.

[DrDesmo]

Then again, there's always NH:

0% Income Tax
0% Sales Tax

Adam

[ducpainter]

Then again, there's always NH:

0% Income Tax
0% Sales Tax
$0  Dollars Income
Adam

Fixed it.

[DrDesmo]

Fixed it.

Adam

[red baron]

Then again, there's always NH:

0% Income Tax
0% Sales Tax
0% liquor tax

Adam

Now it's fixed.

[DrDesmo]

Now it's fixed.

That's what i'm talkin about.  I <3 the NH state liquor stores 

[redxblack]

I find it hard to take the WSJ seriously, especially after Murdoch purchased it.

[Ddan]

The article forgot to mention that the income tax decrease is being offset by broadening, and in some cases increasing, the sales tax.  If anyone is naive enough to believe the state is actually going to take less money, I've got a bridge to sell.

[redxblack]

So it's a shift away from progressive taxation to regressive taxation.

[Ddan]

So it's a shift away from progressive taxation to regressive taxation.

"Most" people will see a reduction in their income tax.  The theory is to tax tourists more by increasing the tax on meals and lodging, etc.  They are also going to tax some services like car repair.  Somehow the ski industry is getting a pass on taxing lift tickets, probably because there is going to be the meals and lodging that will go with a lot of the ski ticket sales.  We are already, by some measures, the highest taxed state in the country, and something like 4th from the bottom for 'business friendly' economic environment.  Take Herm's advice, stay away.   

[NAKID]

The Ski industry isn't getting a pass.

This month the Democratic legislature and Governor John Baldacci broke with Obamanomics and enacted a sweeping tax reform that is almost, but not quite, a flat tax. The new law junks the state's graduated income tax structure with a top rate of 8.5% and replaces it with a simple 6.5% flat rate tax on almost everyone. Those with earnings above $250,000 will pay a surtax rate of 0.35%, for a 6.85% rate. Maine's tax rate will fall to 20th from seventh highest among the states. To offset the lower rates and a larger family deduction, the plan cuts the state budget by some $300 million to $5.8 billion, closes tax loopholes and expands the 5% state sales tax to services that have been exempt, such as ski lift tickets.

[Ddan]

The Ski industry isn't getting a pass.

I'll be damned. I coulda sworn I just recently read they were getting a pass (bad pun, I know but it's the best I could do).   


edit


From Ski Maine:

"An estimated 100 New Taxes were passed by the Maine Legislature on Friday June 5. The huge expansion of sales taxes includes amusements & recreation.

The impact on the Maine Ski Industry is significant! The new sales tax will be extended to lift tickets, equipment rentals, ski/snowboard repairs & tuning, lessons, guided tours, nursery & day care, group trips.

One benefit that the industry was able to gain is the exemption of sales tax on the manufacture of snow. Although this is a positive step, it does not mitigate the huge increase in cost of the sales tax.

The expanded taxes are also extended to municipal ski slopes and non-profits, so no one is exempt by the new law.