Maine news, sports, weather | Kennebec Journal, Augusta, Maine

QUESTION 1

Repeal of tax overhaul may be close vote

Both sides complain about others' advertising

By Ethan Wilensky-Lanford ewlanford@mainetoday.com
Staff Writer

AUGUSTA -- As voters head to polls around the state today, they will be asked to vote "yes" to reject a tax reform package or "no" to allow the reforms -- passed by the Legislature and signed by the governor -- take effect.

The spokesman for the Vote Yes to Reject New Taxes campaign, Curtis Picard, spoke confidently Monday about the repeal campaign.

"We seem to have gotten the word out there," he said, "and we seem to have resonated with Mainers."

The spokeswoman for the No Higher Taxes for Maine campaign, which is urging people to vote no, expressed cautious optimism that reform would remain law.

"I think we have a fair shot," said the spokeswoman, Crystal Canney. "We definitely had the more difficult message to deliver."

The law -- currently on the books, but suspended -- would reduce the state income tax for more than 95 percent of individuals and small businesses, according to the Maine Revenue Service, while offsetting that $75 million revenue loss by expanding the state sales tax to a new array of products and services.

Tourists are estimated to pay a third of the increased sales tax, and more than 87 percent of Maine residents are estimated to pay less in taxes, even after consideration of increased sales tax.

A poll released late last month by Portland-based Critical Insights indicated that Mainers remained nearly evenly divided. Of approximately 600 people polled, 43 percent wanted the law upheld, 38 percent planned to reject it and 19 percent were undecided. The poll had a 4 percent margin of error.

The Maine Association of Realtors have given $222,589 since May 24 to encourage voters to reject the legislation. It established a ballot-question committee to raise money to produce and air two television ads.

The No Higher Taxes for Maine campaign has also run a series of ads, spending $190,000 on production and media between May 26 and June 7 alone.

Canney, a licensed Realtor, said Monday she was concentrating anti-repeal efforts on convincing other real estate agents -- a voting bloc of more than 5,000 -- that the reform package made sense. She sent an e-mail to agents that was signed by seven prominent Realtors in the state.

"Not everyone is in agreement within their own organization," she said.

Picard was communicating his campaign's message to reject the reforms through Facebook, which he said has been very useful because he can link to videos, including several submitted by enthusiastic fans of the campaign.

"In terms of how we've been able to reach everyday voters, we're feeling pretty good about that," he said. The Vote Yes to Reject New Taxes Facebook page had 831 fans Monday -- almost twice as many as the No Higher Taxes for Maine page.

Linda Gifford, of the Realtors' association, was concerned Monday that people would be confused about the wording of the question and tactics used by the other side.

"To have it be that 'yes' to get rid of something is kind of an opposite reaction," Gifford said. "And the, 'If you don't vote no, then taxes will go up 30 percent' is very misleading."

But Canney said the ads Gifford's group have been airing also have been deceitful.

"Their ad said that it's a government bailout for the wealthy, and we know absolutely that that is not true," Canney said.

(Editor's Note: This story was changed at 10 a.m. on Tuesday to correct the name of Linda Gifford.)

"If Maine people miss this opportunity, it may be a long time before we have an attractive vehicle to bring businesses to the state of Maine, and we know that the top income tax rate of 8.5 percent has been a deterrent to bringing jobs to the state," she said.

The four most recent referendums aiming to change the state's tax code all failed.

Ethan Wilensky-Lanford -- 620-7016

ewlanford@mainetoday.com