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People's Veto the Right Choice for Mainers - Foster's Daily Democrat Editorial PDF Print E-mail

Foster's Daily Democrat Editorial

On Nov. 4, Maine voters will be asked to repeal a package of tax levies passed earlier this year by the Legislature and signed into law by Gov. John Baldacci.

Without hesitation, voters should blacken the “yes” box on their ballots next to Question 1, The People's Veto, which reads:

Do you want to reject the parts of a new law that change the method of funding Maine 's Dirigo Health Program through charging health insurance companies a fixed fee on paid claims and adding taxes to malt liquor, wine, and soft drinks?”

As explained in neutral terms by Ballotpedia. org: “The bill will raise over $100 million for the Dirigo Health Choices program by taxing beverages and doctor's fees. … The tax package includes a new $4 tax on a gallon of syrup used to make soda in restaurants; a new 42-cent-per-gallon tax on bottled soft drinks, and, a doubling of the current tax on beer and wine, to 54 cents a gallon on beer and 65 cents a gallon on wine. The package also includes a 1.8 percent tax on claims paid by insurance companies and the self-insured to replace a similar fee that supports Dirigo Choice insurance today.”

Seems like a good cause, but is it? And is it worth adding to the tax burden of Mainers already struggling in the current failing economy?

In simple terms, Mainers are already overtaxed. Nationally, Maine ranks 15th in state tax burden and has little to show for it. To put that in perspective, the Pine Tree State leads 23rd ranked Massachusetts at 9.5 percent — a state with a strong infrastructure, mass transportation and strong high-tech industry.

And while 15th may not seem all that bad, Maine's neighbor to the west, New Hampshire, ranks 46th nationally at 7.6 percent.

Then there is the failure called “Dirigo.”

As reported in the Kennebec Journal on Sept. 22:

“It (Dirigo) was promoted as a program that would cover 136,000 uninsured Mainers by 2009. To date, it covers about 18,000 people, 6,000 of whom are part of the state's Medicaid program. Recently, the program borrowed $20 million from the state General Fund — which must be repaid with interest — because of a cash flow issue.”

If only covering 18,000 of a projected 136,000 Mainers has forced the state to borrow to this degree — and requires a $100 million infusion of tax — imagine what the bill will be if Dirigo ever comes close to its goal.

The reality is that Dirigo — if allowed — will continue to siphon off much needed tax dollars, a point conceded by opponents of Question 1.

The coalition No On One blatantly argues it is fair to impose a tax of a “few pennies” on Maine goods to fund Dirigo. Never mind that those pennies will add up to an additional $100 million subsidy — far more than just a “few pennies” by anyone's measure.

No On One also argues there are no alternatives, that vetoing Baldacci's tax package will lead to more costly emergency room visits and higher costs for everyone.

Odd that No On One ignores the added tax burden this tax package places on “everyone,” including those Dirigo seeks to help.

Opponents of Question 1 urge voters not to veto the tax package simply because they are angry with the way the Legislature passed Baldacci's Dirigo Health bill — in a rush to adjourn the legislative session and without a public hearing.

“If you're angry with Augusta about taxes, this is not a way to vent your anger,” Edie Smith, campaign manager, is quoted as saying.

Ms. Smith, anger is not the issue. An abdication of responsibility by the Democratic-led legislature and a complicit governor are the issues

Dirigo is broken. If it cannot be fixed, scrap it. Don't continue to throw good taxpayer money after bad.

If it can be fixed and made to pay its own way, then do so.

Yes on Question 1 is a prudent vote and a disciplined one that should be used to send a message to Augusta.
 
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The Facts

Q. What is a People’s Veto?

A. The People’s Veto 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.

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