Radio Address: Democrats Should Stop Holding Tax Conformity for Ransom
February 16, 2016
(MP3 Audio)Democrats are still refusing to implement permanent tax conformity. They are determined to prevent tax benefits from going to teachers, low-income earners, students and Maine businesses.
Hello, this is Governor Paul LePage.
Folks, tax conformity is not an obscure issue. It is about giving Maine people and businesses the tax benefits they deserve. Even the Obama administration agrees Americans should get back some of the taxes they have paid to the federal government.
But not the House Democrats. They are holding tax conformity for ransom. They are tying it to education funding, which is totally unrelated to giving tax refunds to the Maine people.
Even worse, they want to raid the state?s Budget Stabilization Fund for $23 million in education spending in exchange for giving tax refunds to Mainers. Taking money out of the rainy day fund would jeopardize the state?s credit rating, which we have worked hard to improve.
Furthermore, the $23 million would be a windfall for state education spending, which has already increased by $80 million over the last budget.
Over the past decade, enrollment in Maine decreased by 25,000 students. Although the number of students has declined by 13%, spending has increased 18%. In school year 2016 to 2017, state spending will be $114 million higher than school year 2010 to 2011.
Democrats also object to giving Maine?s business the ability to invest and expand. They don?t want businesses to take advantage of ?bonus depreciation,? which encourages companies in Maine to make capital investments on new equipment. Companies can then write off their investment more rapidly in the first year of purchase.
Once again, these Democrats don?t get it. When businesses are encouraged to invest, they grow their companies and?most importantly?they create jobs. The Democrats are taking their marching orders from the socialist leaders at the Maine People?s Alliance, which is aggressively pushing an anti-business, job-killing agenda this election year. Instead of listening to socialists, Democrats should be working to benefit Maine businesses and Maine taxpayers. They are either for it or against it. If Democrats think tax conformity is good for the Maine people?which it is?they should vote for it. If Democrats disagree with President Obama and don?t think Maine people and businesses deserve the same tax benefits the federal government is giving them, they should just vote against it.
Even though it is an election year, they should just be honest with Maine people.