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Q. What is a People’s Veto? A. The People’s Veto process is our right to challenge an act of the Maine Legislature by putting on the ballot.. The Fed Up With Taxes Coalition collected more than 95,000 signatures from Maine citizens who oppose new taxes on beverages and health care. This allows the issue to be put on the November 4, giving all of us a chance to “Vote Yes On Question 1” to undo this tax increase that the legislature tried to sneak by us. Q. Was there any opportunity for public comment on the new beverage taxes? A. No. Legislative leadership hatched this new tax in a series of close door meetings and ran it through late in the evening on one of the last days of the recently concluded legislative session. There was no public hearing and no public input on any part of the new tax on beer, wine, flavored water, juice drinks, sports drinks, teas, colas and diet colas. Q. Is that standard practice in the Maine legislature? A. No. The Legislature holds hearings on nearly every bill that is introduced. For instance, when certain Legislators wanted to designate the Arctic Char as a state heritage fish, there was a public hearing and a work session to make this determination.
The Legislature held a public hearing on a similar tax proposal at the beginning of 2007, and the bill was unanimously rejected. Q. Do Maine residents support these new taxes? A: Countless studies demonstrate that Maine has one of the heaviest tax burdens in the nation. And countless surveys indicate that Maine people have reached the limit of what they are willing to pay. If the feedback that our members have received from thousands of citizens and business owners across Maine is any indication, the vast majority of Maine people do not support these new taxes. Q. How will this new tax impact small businesses? A: The impact on small businesses could be even more detrimental as more Maine consumers cross into New Hampshire to buy groceries and beverages to save money. As that happens, more Maine jobs will be at risk. Small retailers will have to increase prices on nearly every beverage they sell to cover the new taxes. Restaurants and convenience stores will have to absorb a 35-40% increase in the cost of a fountain drink. Small businesses will have to absorb or pass along to their employees the new 1.8% tax on health insurance claims. Q. How will this new tax impact the overall economy of Maine? A: These taxes will only make our economic problems worse. When businesses are struggling, as they are right now, the last thing we need to do is put more pressure on them through higher taxes. These additional taxes will make it even harder for small businesses like grocers and convenience stores here in Maine to create jobs and keep the economy going. If the cost of doing business becomes too high, these local businesses might be forced to lay off employees, close or move out-of-state. Q. Is it true that special interest groups are trying to stop this People’s Veto? A. Yes. A handful of legislators, along with some “tax and spend” special interest groups who did not want you to know about these taxes in the first place, now want to make sure that you have no voice at all. They formed a Political Action Committee and waged an unprecedented (and unsuccessful!) effort to block Maine people from signing our petition. Q. Who are the contributors to this pro tax PAC? A. The PAC received almost all of its funding, $100,000, from Donald Sussman, of Greenwich, CT, and the Virgin Islands. He is the owner of Paloma Investments, a major hedge fund based in New York City. Q. Why are they doing this? A. The only other contribution to this PAC came from the union that represents state government workers. This union wants you to pay more taxes to support Dirigo Health Insurance, but they themselves aren’t even willing to join the program. Similarly, the Maine Education Association, the union for Maine teachers, is claiming that if these taxes are repealed, they might lose their benefits. An excerpt from a recent MEA newsletter to its members is pasted below: "Should the (People's Veto) succeed, legislators may attempt to take over the MEA Health Plan again - so it could become a serious threat to the excellent benefits and moderate rates our current and retired educators enjoy." Q. Will anyone lose health insurance coverage as a result of the People’s Veto? A: No. The pro tax, special interest groups who want to tax Maine people an additional $75 million are using scare tactics. No one currently covered by the Dirigo Health Program will lose their health insurance coverage as a result of the People’s Veto. Q. Are there other possible funding solutions to address health care? A: Yes. We all want to lower health care costs, but taxing doctor’s bills and nearly every beverage that Maine people drink is the wrong approach. If Dirigo Health Program needs more money to continue operating, that should be evaluated along with all other government programs. State government’s response should not be to tax Maine citizens another $75 million each year.
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Fed Up With Taxes? Vote YES on 1!
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