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STATE HOUSE

March 3, 2010

Bill would allow voluntary taxation

By Susan M. Cover scover@mainetoday.com
MaineToday Media State House Writer

AUGUSTA -- A legislator's proposal to allow Mainers to voluntarily contribute money to pay for state social services gained traction Tuesday in the Taxation Committee.

Rep. Terry Hayes, D-Buckfield, sponsor of L.D. 1785, "An Act to Bolster Maine's Social Safety Net through Voluntary Sales Tax Contributions," said in testimony before the committee Tuesday the idea is a compromise, between budget cuts that would take money out of social services and raising taxes on those who cannot afford it.

"There are those of us who, by virtue of our blessings, are not choosing between medicine and groceries," she said.

For those people, a secure system in which donations could be taken from a bank account and transferred to the state would be a good option, she said.

Hayes found bipartisan support for her idea, from Rep. Henry Joy, R-Crystal, and Senate Minority Leader Jonathan Courtney, R-Springvale.

Joy, a member of the Health and Human Services Committee, said well more than 100 people who testified in opposition to state budget cuts called for a tax increase.

"This is their chance," he said. "They can tax themselves."

Several members of the Taxation Committee said they are likely to support the bill but wanted to get more information from Maine Revenue Services before voting on it. The vote is now scheduled for Thursday.

Money donated by citizens to the "voluntary safety net fund" would support nursing facilities, mental health services, services for theelderly, and services for those with developmental disabilities. An amendment proposed by Hayes calls for the fund to dissolve in 2015 unless a future Legislature takes action to continue it.

"For those people who say, 'Raise my taxes,' maybe we can find a way for them to pay more," she said.

Susan Cover -- 620-7015

scover@centralmaine.com

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