Following is a piece addressing the new tax bill, LD 1496, that I submitted to the Lewiston Sun Journal. Unfortunately, it did not meet their parameters for publication so I am sharing it here.

In 2009, the Maine Legislature passed, and Governor John Baldacci signed, a major disruption of Maine’s tax code that shifted a massive tax burden onto small businesses and working families in order to support state government’s continued growth unabated.

A wide coalition of Republicans, Democrats, Independents, and Green Party activists gathered the 50,000 signatures required to bring the controversial law to a popular referendum. The following Spring, Maine voters rejected the proposal with a people’s veto by an overwhelming margin of 61 to 39.

As a member of the Taxation Committee, I am shocked to see essentially the same exact omnibus tax hike proposal. The only difference is, this bill is even more regressive and an even bigger net tax increase on Maine people than the one repealed at the ballot box three years ago.

The bill would generate $700 million by increasing and broadening the sales tax to cover virtually everything. It’s designed to bring in more revenue from tourists and people who don’t live here year-round, but let’s take a look at the toll it takes on everyday Mainers.

Currently in Maine, there is not a tax on groceries. With prices rising rapidly over the past several years, it seems to us like the same shopping cart full of food costs twice as much as it used to. This proposal would slap your already-heavy grocery bill with a six percent tax. If your family spends $150 per week at the grocery store, that’s an extra $500 per year coming out of your pocket.

Not only would groceries now be taxed, but so would water and plumbing to haircuts and dry cleaning to home heating oil and car repairs. It increases the cigarette tax by $1.50 per pack and doubles the taxes on beer, wine, and real estate transfers and there would be about a 50 percent increase on car rentals and hotel stays.

In my opinion, this bill creates a “cradle-to-grave” tax state that places a hugely regressive penalty on your baby formula, funeral services, and everything in between.

When the dust settles, we’ll see a sales tax hike of $538 for every man, woman, and child in Maine. That’s $2,700, or about $225 per month, for a family of five.

It is said this is taxing tourists but how much of this $700 million will be covered by out-of-staters? To give you an idea, less than three percent of it will be raised by the lodging tax hike. Fortunately for tourists, they can avoid the tax increases simply by avoiding Maine.

And what do Mainers get in return for this tax onslaught? They get a flat income tax rate of four percent but buyer-beware, the plan eliminates all deductions and credits Mainers currently enjoy. That means no more deducting educational expenses, no more child tax credit, and no more work expense write-offs. The plan also eliminates the estate tax for the wealthy and provides a payment to the towns that spend the most money—not a good incentive for smaller government, if you ask me.

Accounting for tax increases and cuts, the net effect is a crushing $163 million per year tax hike to cover the government overspending going on in Augusta.

The only thing that’s worse than a tax increase is a tax increase that targets the Mainers who can least afford to pay it. Perhaps that’s why most Democrats and Republicans are united in opposing this plan. I don’t believe massive tax hikes are a sustainable solution for Maine’s overspending, and both Democrats and Republicans agree that this package hurts the poor and the middle class—the very people we’re all trying to help.

I don’t believe we need to increase taxes in the State of Maine to balance our budget; we need to reduce government spending at all levels and live within our means. That is what every Maine family is doing, we should expect no less from our government.

I would encourage you each to read LD 1496 carefully and contact your local Legislator to express your opinion.

The bill is scheduled for Public Hearing on May 10th, 2013 at 10:30am in Room 237 of the State House. All are welcomed to attend and provide testimony or following the proceedings live on web.

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This item originally appeared on Rep Roger Jackson’s Official Facebook Page.

The following is a recent press release from Senator Collins regarding possible abuse of power perpetrated by the Internal Revenue Service. This is an evolving issue and new information will most likely come to light due to the senators actions on this issue.

WASHINGTON, DC – U.S. Senator Susan Collins today sent a letter to the Secretary of the Treasury, Jack Lew, expressing deep concern over the reports of abuse of power perpetrated by the Internal Revenue Service, including targeting conservative groups for heightened scrutiny when filing for tax-exempt status, as well as compelling the targeted groups to divulge their membership lists. 

“It has been said that the power to tax is the power to destroy,” the letter reads.  “The American people cannot and will not tolerate the abuse of that power to erode their most fundamental rights.  It is imperative that the Department act decisively to put an immediate end to such abuse, ensure appropriate policies are in place to prevent future such abuses, and give a full accounting to the American people of how such an abuse of power was allowed to occur.”

A copy of the letter can be viewed here.  Here is the text of the letter:

  Dear Secretary Lew:

  I am writing to express my deep concern over the recent revelations of abuse of power by the Internal Revenue Service (IRS).

  Last Friday, Lois Lerner, Director of the Exempt Organizations Division at the IRS, admitted that officials within the agency deliberately selected for heightened scrutiny applications for tax-exempt status filed by some conservative groups.  According to Ms. Lerner, IRS officials targeted applications that included certain key words associated with conservative viewpoints, such as “tea party” and “patriot.”  Media reports indicate that groups critical of the government or that worked to educate the American people about the Constitution and the Bill of Rights were also targeted.

  A report scheduled for release this week by the Treasury Inspector General for Tax Administration (TIGTA) is expected to show that this inappropriate targeting dates back to at least 2010, and came to the attention of senior IRS officials in 2011.  Such a timeline, if accurate, would contradict March 2012 testimony by then-IRS Commissioner Douglas H. Shulman in which he told a House Ways and Means subcommittee that such targeting was not taking place. 

Also troubling are reports that the IRS sought to compel the targeted groups to divulge their membership lists. Ms. Lerner has admitted that there was no reason for the IRS to have sought this type of information, and that it was not appropriate for the IRS to have done so. Indeed, Section 501(c)(4) organizations are not prohibited from engaging in political advocacy, as Ms. Lerner herself has noted. Thus, the fact that the IRS chose to press these organizations for their membership lists suggests an effort to chill the constitutional rights of speech and association by groups that hold conservative views and that were seeking tax-exempt status. This is reminiscent of the type of state action struck down by the U.S. Supreme Court in NAACP v. Alabama (1958). As the Court explained in that case, the disclosure of membership lists sought by the State of Alabama was an impermissible effort to “induce members to withdraw from the Association and dissuade others from joining[.]”

  Furthermore, the abuses that are now making headlines appear to be part of a larger pattern of questionable activity by the Administration that seems intended to hinder or chill the expression of views critical of the Administration.  Two years ago, for example, the IRS sent letters to donors of conservative 501(c)(4) tax-exempt organizations informing them that the IRS was investigating why they had failed to file gift tax returns reflecting their donations. Similarly, in 2011 the Administration proposed an executive order requiring federal agencies to collect information about the campaign contributions and other political expenditures of potential federal contractors.  In response to widespread opposition, the Administration ultimately did not issue the executive order.

  Irrespective of whether those singled out were liberal or conservative, Republican or Democrat, the targeting of private citizens for exercising their First Amendment rights is unacceptable and cannot be tolerated.  It has been said that the power to tax is the power to destroy. The American people cannot and will not tolerate the abuse of that power to erode their most fundamental rights. It is imperative that the Department act decisively to put an immediate end to such abuse, ensure appropriate policies are in place to prevent future such abuses, and give a full accounting to the American people of how such an abuse of power was allowed to occur. Toward that end, I ask you to direct the Department to respond expeditiously, and no later than May 27, to the following questions:

1.      According to recent press reports on the upcoming TIGTA audit of the IRS’s tax-exempt unit, Lois Lerner, the head of this unit, knew as early as June 2011 about the IRS targeting of certain conservative groups. 

a.       How did Ms. Lerner become aware of this activity?

b.      What actions did Ms. Lerner take upon learning of this activity in June 2011?

c.       To whom did she report this activity?

d.      Please describe Ms. Lerner’s chain of command.    

e.       What action did her superiors take? 

f.       When did her superior act?  

2.      According to recent press reports, senior officials learned of the targeting of conservative groups applying for tax-exempt status in June 2011. 

a.       Which IRS and Treasury officials were aware of the targeting activity at any time during 2010 and/or 2011?

b.      When did these targeting activities begin? 

c.       Who made the decision to target these tax-exempt applications for additional scrutiny?

d.      Have these targeting activities stopped? 

e.       What processes have been implemented to ensure this type of targeting does not occur in the future? 

f.       If such safeguards are not now in place, when will such processes be implemented?  

3.      Was former Commissioner Douglas H. Shulman or now-Acting Commissioner Steven T. Miller aware that the IRS was targeting conservative groups applying for tax-exempt status for special scrutiny?

a.       If so, when did each become aware of this activity?

b.      What specific actions did each take in response to this activity?

4.      Press reports and statements by the Administration indicate that the IRS’s targeting of conservative groups applying for tax-exempt status was limited to “a few employees” in an IRS office in Cincinnati. 

a.       Does this Cincinnati office process all of these tax-exempt applications?  

b.      How many employees engaged in this targeting activity? 

c.       Who managed the activity of these employees? 

d.      Who directed the Cincinnati office to initiate additional screening of these tax-exempt applications? 

e.       What personnel actions, if any, have been taken pertaining to the employees involved in the targeting?

5.      Were Department officials outside of the IRS or other Administration officials aware that the IRS was targeting conservative groups applying for tax-exempt status for special scrutiny?

a.       Which officials were aware of this activity?

b.      When did these officials become aware of this activity?

c.       What actions did these officials take to discourage or encourage this activity?

6.      Some press reports indicate approximately 300 tax-exempt applications were initially flagged for closer scrutiny and 75 were chosen additional scrutiny. 

a.       Please confirm the number of tax-exempt applications flagged within the IRS for closer scrutiny. 

b.      Have you queried other parts of the IRS to confirm this number represents the universe of applications flagged for closer scrutiny? 

7.      Please describe the process for developing criteria to screen these tax-exempt applications in 2010, 2011, and 2012. 

a.       Who managed the process of developing criteria to screen tax-exempt applications?

b.      Who supervised this process? 

8.      What other key words besides “tea party,” “patriot,” and “9/12″ were used to identify tax-exempt applications for additional scrutiny?

a.       How were these key words chosen? 

b.      What other words were used?

c.       Who approved the use of these key words?

9.      Please describe the process in place (in 2010, 2011, and 2012) once tax-exempt applications were flagged for additional scrutiny.   

Thank you for your prompt response.

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Thank you to all who turned out for this event supporting the Wounded Heroes Program of Maine. This was a great service project for the two young men involved and a great benefit to the community.

The following news story was featured in the Sun Journal Saturday, April 27th.

WATERFORD — Two high school seniors turned their passion for firearms and the military into a fundraiser Saturday.

For their senior project at Oxford Hills Comprehensive High School in Paris, Ryan Bolduc, 18, and Aaron Tremblay, 17, organized Rifles for Heroes, a shooting competition held at the Waterford Fish & Game Association. It benefited the Wounded Heroes Program of Maine, a division of the Warrior Legacy Foundation.

Twenty-five teens and adults entered the 10 a.m. to 4 p.m. competition, which raised $1,572, Carlene Tremblay, Aaron’s mother, said via Facebook.

“It was just a great way to give back, especially for a senior project,” Aaron Tremblay said.

 

Terry Karkos/Sun Journal

 Oxford Hills Comprehensive High School junior Josh Simmons, right, and senior Aaron Tremblay, watch senior Ryan Bolduc, all of Waterford, clean his carbine for Simmons to use during Saturday’s Rifles for Heroes Shooting Competition that benefited the Wounded Heroes Program of Maine.

 

Terry Karkos/Sun Journal

 During Saturday’s Rifles for Heroes Shooting Competition that benefited the Wounded Heroes Program of Maine, Oxford Hills Comprehensive High School senior Aaron Tremblay of Waterford films competitor Noah Chantasiri of Raymond, N.H., who is shooting a Mossberg .243-caliber bolt action rifle.

 

Terry Karkos/Sun Journal

 Waterford Fish & Game Association secretary John Conti, left, of Waterford, teaches Ryan Bolduc, 18, how to disassemble his carbine on Saturday during the Rifles for Heroes Shooting Competition to benefit the Wounded Heroes Program of Maine. Watching from right are Bolduc’s Oxford Hills Comprehensive High School classmates Josh Simmons and Aaron Tremblay, all of Waterford.

 

Terry Karkos/Sun Journal

 

During Saturday’s Rifles for Heroes Shooting Competition, Conner Tremblay, left and kneeling, aims a Remington .308-caliber rifle at a target 50 yards away, while Percy Savage of Bryant Pond aims his .22-caliber Magnum bolt-action rifle at a target 100 yards away at the Waterford Fish & Game Association Shooting Range.

 

Terry Karkos/Sun Journal

 

Percy Savage of Bryant Pond aims his .22-caliber Magnum bolt-action rifle at a target 50 yards away during Saturday’s Rifles for Heroes Shooting Competition at the Waterford Fish & Game Association Shooting Range in Waterford.

 

Terry Karkos/Sun Journal

 After competing in the Rifles for Heroes Shooting Competition Saturday at the Waterford Fish & Game Association Shooting Range, Percy Savage, foreground, of Bryant Pond, and his grandson, Noah Chantasiri of Raymond, N.H., inspect their 100-yard targets.

 

Terry Karkos/Sun Journal

 

These fancy trophies and accompanying bracelets were awarded to winners of Saturday’s Rifles for Heroes Shooting Competition at the Waterford Fish & Game Association Shooting Range in Waterford.

 

The following is a video of Senator Susan Collins speaking about the recent  Manchin-Toomey Compromise bill in the US senate.

From Maine GOP Research – This item highlights several important facts about being a right to work state. Additionally when real figures are used it is clear to see that Right To Work laws benefit all by growing the job market and improving wages.

As the debate over right to work heats up in Augusta, we wanted to share these facts from the Maine House Republicans about right to work states vs. forced union states.

Opponents of RTW say that RTW does not create jobs in states that adopt it, but…

-  According to the US Labor Dept., from 1990 to 2010, private sector payrolls increased 32% in RTW states, three times faster than non-RTW states.

-  According to The Mackinac Institute, job growth increased 71% in RTW states since 1980 and only 32% in non-RTW states.

-  Within a year of Indiana enacting RTW, 65 companies have communicated to that state’s economic development corporation that the recent law will factor into their site location decision-making process.

 Opponents refer to “right-to-work-for-less” and say wages are lower in right-to-work states, but…

-  While it may be true that according to the raw data, wages are lower, when you account for cost of living differences, wages are actually 4% higher in RTW states, according to the Mackinac Institute. 

-  Wages in RTW states have grown four times faster than wages in forced-unionism states.

-  According to research by economist Dr. Richard Vedder, RTW states experienced a 23% faster increase in per capita income between 1977 and 2007.  

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Come out and support a great charity and two of our local high school seniors.

In conjunction with the Wounded Heroes Program of Maine and the Waterford Fish and Game Association, Oxford Hills Comprehensive High School Seniors Ryan Bolduc and Aaron Tremblay will be hosting a “Rifles for Heroes Shooting Competition” for their High School Senior project. The competition will take place on Saturday, April 27 starting with a safety briefing at 9:30am. The competition will commence at 10:00am.

 For any questions about the competition please contact Ryan Bolduc at 207-583-1038 or Aaron Tremblay at 207-583-6205

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Stunning Statements Encapsulate Debate On Wage Controls, Business Environment

Augusta – The Maine Republican Party today issued the following statement on Representative Jim Campbell’s recent declarations during wage control and right to work hearings in Augusta that businesses should “go move over to New Hampshire” and asking one of the Governor’s top advisors why he “didn’t stay there” in a right to work state.

“These statements perfectly encapsulate a decades long problem in Augusta,” said Maine GOP Chairman Richard M. Cebra. “Regardless of party or ideology, our elected officials should be working hard to draw businesses to Maine to hire Maine workers.”

What Representative Campbell has done is show us the perfect ‘divided we fall’ approach that got us into this situation. Campbell caucuses with Democrats in Augusta, and it should be of great concern to Maine people and Maine’s business community that this attitude could represent the position of, or closed-door conversations taking place in, the Democratic caucus.

“Maine needs a ‘united we stand’ approach for our supporting our small business community and getting our young workers onto the economic ladder,” Cebra said

The Maine Republican Party is calling on Democratic leadership to publicly denounce Campbell’s statement that Maine businesses should ‘go move over to New Hampshire’, and his suggestion that one of the Governor’s top advisors should have ‘stayed there’ (in a right to work state). Democrats also need to acknowledge that wage control actions such as Democrat minimum wage proposals will price young people out of the job market and price businesses out of Maine.

Whether it is Campbell openly telling business to move to New Hampshire or passing laws that tell Maine businesses Augusta just doesn’t care, Maine workers can’t afford this.

“It’s time for Democrats to stand united with the rest of us behind Maine’s small business community, and put this ‘divided we fall’ approach to governing to rest. Maine deserves better,” Cebra concluded.

BACKGROUND: Representative Campbell’s full quote was as follows during a minimum wage session:

“I’ve heard that over and over for years and years and years out, about how bad things are in Maine and how great they are in New Hampshire. My suggestion is, if you don’t like operating in Maine, you operate, go move over to New Hampshire,“ Representative James Campbell.

Representative Campbell represents a House District (House 138) that borders New Hampshire.   http://www.maine.gov/sos/cec/elec/apport/House/h138.pdf

Representative Campbell’s full quote to John Butera, Governor LePage’s Senior Economic Policy Advisor was:

“My question is if all of this stuff is that great in those states you just mentioned, why didn’t you stay there?”

Please Join The Maine Republican Party

and

Rupert and Suzanne Grover

 For a Reception to Meet and Greet

 The Honorable Richard M. Cebra, Chairman

Maine Republican Party

 Monday, April 1, 2013

5:30 – 7:00 PM

Maurice’s

109 Main St.

South Paris

 $35/person. Cash Bar

 Please RSVP to Michelle michelle@mainegop.com or by calling 622-6247

             All Proceeds benefit the Maine Republican party. Paid for and authorized by the Maine Republican Party. Not authorized by any Candidate or Candidate’s Committee.

   Rhetoric turns to action as Dems raid pockets of middle class

AUGUSTA – House Democrats today rammed through LD 405, “An Act To Increase Municipal Agent Fees for Licensing and Registration of Motor Vehicles,” with a partisan, 84-52 vote. The bill authorizes a 50 percent fee increase for new motor vehicle licenses or registrations and a 67 percent increase for renewals.

“Mainers are getting hit from all angles,” said House Republican Leader Ken Fredette (R-Newport). “Between federal payroll tax hikes and threats from Maine Democrats to raise income taxes, meals and lodging taxes, cigarette taxes, death taxes, and more, every little fee or tax adds up. The middle class is facing death by a thousand cuts under Democrats and their constant search for more revenue to fuel government growth.”

According to the Bureau of Motor Vehicles, there are approximately 1.5 million vehicles that require registration in the state currently. LD 405 will take roughly $3 million out of family budgets annually and put it in government coffers.

“Mainers already take a hit to the pocket book every time they head to the town office or BMV, the last thing the middle class needs is more fee increases,” said Assistant House Republican Leader Alexander Willette (R-Mapleton).

The bill will now go to the Senate before heading to the governor’s desk. Governor LePage has previously threatened to veto any bill that does not have broad, bipartisan support or does not promote job creation.

“This bill does neither, and is in fact an impediment to bipartisan cooperation and job creation,” added Fredette. “If the governor vetoes it, I will vote to sustain his veto.”

Maine House Republicans

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