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Local voters reject beverage tax, say no to casino in Maine landslide

By Jim Kanak
jkanak@seacoastonline.com

Voters in Maine overwhelmingly approved the People's Veto on Tuesday, and rejected a new tax on beverages to support the Dirigo Health Plan.

Question 1 on the ballot won by a vote of 389,479 to 220,193, according to the Bangor Daily News, with 87 percent of all precincts reporting.

"We never took this for granted," said Ted O'Meara of Fed Up with Taxes, the group that led the citizens' initiative to repeal the tax. "Ballot questions can be challenging and volatile. We were hoping for a very convincing showing and we got one."

O'Meara said the signs of the landslide win were evident early on.

"It started to form with only five to 10 percent of the votes in," he said. "Once we got to the 60 to 40 percent range it held there. That leads me to believe that we ran very strong across the state."

In fact, the final percentage difference was 64 to 36 percent of the votes in favor of the question.

An attempt to reach Gordon Smith of the group No on One, which sought to defeat the question, thereby maintaining the tax, was unsuccessful.

Voters faced two other questions on the state ballot.

Once again, a proposed casino, this one in Oxford County, was defeated by a 343,790 to 282,307 count.

Finally, a bond issue to support public water system infrastructure projects led by 301,070 to 292,946, only a one percent difference, again with 87 percent of precincts reporting, according to the Bangor Daily News.

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UMaine Economist Calculates Tax and Job Impacts of New Beverage Taxes


October 6, 2008
Contact: Todd Gabe, 581-3307; George Manlove, 581-3756 

ORONO – Maine’s new beverage taxes, at the heart of Question 1 on this November’s ballot, will cost Maine businesses and households as much as $40.7 million annually in higher taxes on beer, wine and nonalcoholic beverages, according to new research by University of Maine economist Todd Gabe.

These taxes, imposed by Public Law 629, also would result in the reduction of $17.5 million in beer, wine and soft drink net sales revenue. Including multiplier effects, the total economic impacts are an estimated reduction in sales revenue of $26.3 million statewide, with a loss of 395 full- and part-time jobs that provide about $8.8 million in income, according to Gabe.

"These total impacts are spread across the entire Maine economy, but concentrated in restaurants and bars, retail stores and other companies that sell and distribute beverages," he says.

"Many people might be tempted to combine the $40.7 million in additional taxes and the $26.3 million in reduced sales revenue into a single impact figure. But that would be comparing apples and oranges," Gabe said. "They are different types of impacts, but the bottom line is an increase in the price of beverages and a loss of sales revenue to the beverage industry."

Gabe’s study on the fiscal and economic impacts of the beverage tax was commissioned by "Fed Up With Taxes," a coalition of businesses and individuals, and several associations representing stakeholders.

The report does not take a position on Question 1, Gabe says. "It simply estimates the effects of the new law on beverage taxes, as well as the economic impacts of the statewide reduction in beverage sales revenues associated with the tax hike," he says. "Other aspects of the law need to be considered to make a judgment about whether Public Law 629 is ‘good’ or ‘bad’ for Maine."

The intent of the study is to inform the debate on Question 1 – the repeal question – on the upcoming ballot, Gabe says.

"This kind of information is important for voters to consider," he says. "It’s a lengthy report, but the majority of it is about how the numbers were generated."

Gabe can be reached for comment at (207) 581-3307.

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Fed Up With Taxes Launches first Television ad



FED UP WITH TAXES LAUNCHES FIRST TELEVISION AD

Released 8/26/08

AUGUSTA, Maine – The Fed Up With Taxes/YES on 1 coalition aired its first television ad last night during the Democratic National Convention. The 30 second ad features Gary Emmons, a small businessman and owner of Exit 26 Quik Stop in Richmond.

“I know first-hand what the impact of these new taxes will be on Maine’s small businesses and working families,” said Emmons, “With the rising costs of gasoline, heating oil and groceries, this is absolutely the worst time to be increasing taxes on beverages we all enjoy such as flavored water, juice drinks, beer, wine and soda.”

Fed Up With Taxes/Yes on 1 is a bipartisan coalition of Maine people, businesses and organizations that submitted more than 95,000 names to the Maine Secretary of State earlier this summer in order to force a statewide vote on repeal of $75 million of new taxes on everyday beverages and health care claims.

The new taxes increase the price of beer, wine, flavored water, teas, sports drinks, juice drinks, soda, and many other popular beverages. The same legislation also created a new 1.8% tax on paid health insurance claims.

The ad is airing on television stations throughout the state and also can be viewed at http://www.fedupwithtaxes.org.

Contact
Ted OMeara at Pierce Atwood Consulting
(207) 791-1400

 


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SECRETARY OF STATE CERTIFIES PEOPLE’S VETO PETITIONS

SECRETARY OF STATE CERTIFIES PEOPLE’S VETO PETITIONS

Released 8/18/08

New taxes on beverages and health care claims to be on November 4 ballot.

AUGUSTA, Maine – Maine people will have the last word on $75 million of new taxes on beverages and health care claims, now that the Secretary of State today certified that the Fed Up With Taxes/YES on 1 coalition submitted more than enough signatures to put the issue to a statewide vote on November 4.

“These taxes place an significant new burden on Maine consumers and small business owners at a time when we already are struggling with the high cost of energy and just about everything else,” said Alisa Coffin, one of the six citizens who initiated the people’s veto last May and the owner the Great Impasta restaurant in Brunswick. “Maine people have had enough. If we don’t repeal these taxes now the politicians in Augusta will just continue to tax and spend. It’s time to send them a message.”

The new taxes, passed late at night in the closing days of the last legislative session without any public hearing, increase the price of beer, wine, flavored water, teas, sports drinks, juice drinks, soda, and many other popular beverages. The same legislation also created a new 1.8% tax on paid health insurance claims.

Fed Up With Taxes, a bipartisan coalition of Maine people, businesses and organizations, submitted more than 95,000 names to the Secretary of State on July 15. At that time, more than 80% of the names had already been validated by municipal clerks. The Secretary has now ruled that petitions containing 72,432 were properly completed.

Newell Augur, chairman of Fed Up With Taxes/YES on 1, said that his group expected a certain number of petitions to be disqualified for technical reasons, as is usually the case with any citizen’s initiative or people’s veto, but that he was pleased that they still ended up with many more than the 55,087 signatures needed to force a vote on the new taxes.

He also said that he would not be surprised to see backers of the new taxes to launch an effort to try get more petitions thrown out.
“The same special interest groups that didn’t want a public hearing on these taxes and then spent more than $100,000 to stop Maine people from signing our petitions will probably make one last desperate attempt to keep Maine people from having their say,” Augur said. “We know that these petitions reflect how most people feel right now, and we are moving full speed ahead with our campaign to urge all Maine people who are fed up with high taxes to vote yes on question 1.”

# # #



Contact:

Contact: Newell Augur

(207) 622-2990

(207) 446-3430

naugur@fedupwithtaxes.or


Alisa Cofffin

207-729-5858

The Fed Up With Taxes can be found here--please join!--->http://www.fedupwithtaxes.org
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The Fed Up With Taxes Campaign in Maine

Who We Are PDF Print E-mail

Fed Up With Taxes is a coalition of Maine citizens, businesses and organizations who are tired of paying high taxes. The coalition is seeking to undo a recently enacted law increasing the tax on beer and wine AND adding new taxes on flavored water, sports drinks, colas, diet colas, juice drinks AND health insurance claims. Our coalition believes Maine people should decide for themselves if they are fed up with taxes. We have organized a People's Veto to give you that opportunity.

  Come join our campaign at http://www.fedupwithtaxes.com/
Why Support “Fed Up With Taxes”? PDF Print E-mail

Maine families are struggling financially in this difficult economy. This is absolutely the worst time to be asking them to pay more for their health insurance as well as the products they consume. These new taxes will cost Maine people an additional $75 million per year!

  • Maine has one of the highest tax burdens in the nation, and the tax on beverages is a hidden tax that state government hoped you would never notice. That is why the Legislature passed these taxes in the dead of the night in the last days of the Legislative session and without any public input whatsoever.

  • Through the peoples veto, we are giving Maine people the opportunity to have their say on new taxes – an opportunity that was denied them by the Legislature and the Governor.

  • These new taxes have a lot of trickle down effects. Not only do they affect consumers, they also hurt small businesses that have to pay the tax. When businesses are struggling, the last thing we need to do is add more pressure on them with higher taxes.

  • Repealing these taxes will not eliminate funding for the Dirigo Health Program. The pro tax special interest groups who oppose our People’s Veto effort are telling you a big lie when they make that claim.

  • This tax will only make our economic problems worse. Maine consumers, who already cross into New Hampshire to purchase goods and services, will spend even more of their money outside of Maine to avoid these new taxes. That will hurt small businesses like grocers and convenience stores here in Maine who are trying to create jobs and keep the economy going.

  • At a time when the federal government is trying to provide people with tax relief due to difficult economic conditions, our own state government is sticking us with even more of a tax burden.





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Fed Up With Taxes in Maine?

Jonathan McKane: Repealing soda taxes won't kill Dirigo
Friday, August 1, 2008 - Bangor Daily News



Supporters of the new Dirigo taxes on soda, beer, wine and health care services have gone on the offensive. In an attempt to frighten and manipulate Maine voters, they have resorted to outrageous claims of dire consequences to Dirigo and our entire health care system should the new Dirigo taxes be repealed in November by a people’s veto.

Don’t believe them. Dirigo will continue whether these taxes are repealed or not. No one will lose health care.

As a member of the Legislature’s Joint Committee on Insurance and Financial Services, I have been present for every legislative hearing, work session and discussion on Dirigo Health over the past four years. I also receive quarterly statements about Dirigo enrollment and finances. The facts about Dirigo tell a much different story than the one Dirigo proponents use in favor of the new taxes on TV and radio and in newspaper columns.

Dirigo is fully funded through the Savings Offset Payment (SOP) and will continue to be funded that way should the people’s veto to repeal these taxes succeed. The SOP, through an incomprehensible and ever-changing formula, calculates the supposed "savings to Maine’s health care system," then taxes insurance companies that amount.

The claims of huge savings to the health care system have never passed the straight-face test and have been the target for ongoing lawsuits by Maine’s insurers and other entities. After the first year of operation, Dirigo claimed it had saved $133 million. By the time the SOP hearing was finished, Maine’s superintendent of insurance had dropped that amount to $43 million.

Even that was a stretch. These "savings" included our hospitals’ voluntary freezes and cutbacks, such as delaying capital improvements, forgoing major purchases and freezing personnel wages. All of these expenses will be made up eventually and could hardly be considered savings.

Still, Dirigo claimed these were indeed savings and they got their money — at the expense of all of us who buy health insurance in this state. The insurance carriers simply add the cost to premiums. This is the current funding system for Dirigo.

This year Dirigo is claiming $149 million in savings to the system, the highest amount ever, even though enrollment has dropped by thousands since its high point. The final decision on how much of this money Dirigo will receive will be made by the new superintendent of insurance, Mila Koffman. She has testified in favor of Dirigo in the past before our committee, so it could be a good year for Dirigo.

So why does Dirigo need the new taxes on beer, wine, soda and health care services? Because the SOP is a difficult, complex and contentious process. It is much easier to simply take the money and forget about proving anything.

Some 90,000 Maine voters signed the petition to put the people’s veto on the ballot — a huge level of support. The pro-tax Dirigo proponents are fighting back with a propaganda onslaught about the number of people who could be "at risk of losing health care" if the Dirigo taxes are repealed. We first heard 20,000 from the Dirigo tax bill’s sponsor, House Majority Leader Hannah Pingree, even though the program’s actual enrollment is only around 12,300. For greater shock value, they then started to use 50,000. The most recent figure I’ve heard is 58,000.

These latest numbers include everyone in Maine who buys health insurance in the individual market. Supposedly we would all be "at risk" because the Dirigo program saves the system so much money. In truth, Dirigo costs the system money. It is a tax on health care and we are all paying for it.

The claims about the successes of Dirigo Health, the amount of money saved and the number of people who benefit from Dirigo are preposterous. These are bold falsehoods that are breathtaking in their audacity. The bottom line is that the money necessary to run Dirigo and pay the six-figure salaries of Dirigo bureaucrats will continue rolling into the Dirigo offices in Augusta whether these new taxes take effect or not.

Rep. Jonathan McKane, R-Newcastle, represents Bristol, South Bristol, Damariscotta, Edgecomb, Newcastle and Monhegan. He may be reached through www.jonmckane.com.

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