It’s Labor Day and the real beginning of the political season in Maine. I’ll be posting to the TABORNOW blog regularly – hopefully daily – and I would urge you to stop back for news, fact, opinion and rebuttal during the next 8 weeks.
Let’s begin with a few notes on why TABOR is necessary – indispensable, really – to Maine’s future.
Maine’s fiscal house is a shambles. Although the political class in Augusta tries to hide the full extent of the mess, the people of Maine are becoming aware of the disaster that our politicians have created. A few facts (courtesy of the Maine Department of Labor and Maine Legislature):
1. From 2000 to 2008, state government spending has skyrocketed an astonishing 46%. By contrast, the overall inflation rate during the same period was only 25%. If we take these numbers back to the King administration, then the overall increase approaches 100%.
2. Until 2007, absolute state revenues (both taxes and fees) increased every year – even during the collapse of the tech bubble in 2000 – 2002. That’s right: every single year the state took in more than the year before. Yet, the politicians managed to outspend what they collected. We now have a structural deficit in the billions of dollars.
3. From 2000 to 2008, property taxes have also exploded, increasing 58% – this in spite of the Legislature’s “solution” to the problem – LD 1. Now, I’ve always though that taxing the old folks out of their homes was downright sinful. Apparently, the Legislature doesn’t agree.
4. From June 2000 to June 2009, private sector jobs in Maine have declined 3.4%. During the same period, government jobs in Maine have increased 3.3% (more on this particular statistic in a later post).
Clearly, government spending in Maine – just like in Washington – is out of control. While the Legislature was finally forced to cut state spending in the last session, it wasn’t for lack of additional taxes.
During FY 2008-2011, the Legislature will impose an additional $300 million in new taxes. After the first TABOR was narrowly defeated in 2006, Augusta legislators proclaimed “message received” on spending and taxation. They lied on both counts.
The political class rammed through the despised beverage tax in the middle of the night and without debate. We vetoed that tax last year but the politicians still wanted their pound of flesh, so at the end of the recent session, they passed a 2% tax on the payment of all of our medical insurance claims.
And these same politicians say that TABOR is both unncessary and a “disaster”. Frankly, “disaster” would be my description of their stewardship of Maine’s finances.
For more information on the Maine Taxpayer Bill of Rights, please visit the TABOR NOW website.
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