Republican weekly radio address
For weekend of November 28-29, 2008

Greetings, this is Josh Tardy, leader of the Republicans in the Maine House of Representatives.

The elections have come and gone, and the voters decided to return the Democrats to power in both the Maine Senate and House. For the Democrats, this marks the 18th consecutive Legislature where they have been in control of the House – 36 straight years. There are few places in America where one political party has held such total domination. So the question needs to be asked: Have the Democrats really done such a phenomenal job that they deserve to remain in power forever?

Let’s take a look and you can decide.

Start with taxes. Maine residents pay one of the highest income tax rates in the nation – 8.5 percent. That really puts us behind the 8-ball when it comes to job creation and business investment. And let’s not forget that we also have the country’s second-highest property taxes and the highest vehicle excise tax rate in the nation. It’s no wonder that Mainers’ incomes are $12,000 below the New England average, and why so many of our best and brightest young people have to leave Maine to find work.

Next, consider health care. Maine residents now pay the country’s second highest cost for health insurance – a cost that is crippling employers, employees and Maine families. Republicans have tried repeatedly to move Maine’s insurance system closer to the American mainstream, but the Democrats have stonewalled even the most reasonable reforms. Insurance in New Hampshire costs about half what it costs in Maine for the same levels of coverage. Before the Democrats began their domination of the state, we had more than a dozen health insurance companies competing for our business. They kept prices in line with the rest of the country. Now just a few of those companies remain and insurance costs have exploded.

And what about energy? Despite years of warnings about the cost of energy, the Democrats who run the Legislature have failed to develop a comprehensive plan to address the issue of generation and supply. Despite their constant talk about sustainable energy, Maine is busily ripping out the dams that provide hydroelectric power - probably the greenest and most sustainable power in the world. The net result is that electricity in Maine is now among the most expensive in the country.

Considering this record on taxes, job creation, health insurance and energy, you might think voters would want a change. Instead, they voted for more of the same. But rest assured, as this new session begins, Republicans will continue to champion our core principles. We believe that our philosophy and ideas will strengthen our state and improve the lives of all Mainers.

We will oppose tax increases and work to lower the overall tax burden. We will keep trying to bring common-sense reform to our insurance mess. And we will provide constructive ideas for an energy plan that deals with both our short-term needs and our long-term objectives.

Let me conclude with a few more words on our approach to taxes, because that one issue has such a widespread effect. Maine’s state and local tax burden takes 14 percent of our incomes – one dollar in taxes for every seven dollars earned. Our top income tax rate of 8.5 percent kicks in at an income level of just $19,000 for a single person. That means we impose the top marginal rate on people making slightly above the minimum wage. That’s totally unacceptable at a time when Mainers face steeply rising prices for a whole range of things – energy, food, health care, college tuition and more. We’re being squeezed tighter all the time. It’s obvious that Maine taxpayers also reject our high tax burden. They proved that by voting two to one to veto the Democrats’ big new tax on health care and beverages.

Once again, we will introduce legislation to ratchet down our income tax rates until we reach a top rate of 4 to 5 percent – somewhere around the national average. Nine states don’t even have an income tax and other states are lowering or eliminating income taxes to remain competitive.

By and large, the states that are doing well financially are the ones that tax the least. The high-tax states keep losing jobs and economic opportunity. Maine is a prime example. Our extreme taxation is smothering the state.

Maintaining our current tax levels virtually guarantees that Maine will remain an economic backwater. We already have the oldest population in America. We also have the smallest percentage of residents under age 18. They say that demographics is destiny. Unless we take meaningful action on taxation, job creation and economic development, Maine will grow older, poorer and less able to afford our enormous welfare programs.

I am optimistic about this new Legislature. I’m positive that Republican policies are the best ones for the people of Maine. They will lead to greater prosperity, a stronger economy and more and better employment opportunities for our citizens. Despite being outnumbered in the State House, we will fight to make sure our voices – and more importantly, your voices - are heard and assure the people of Maine that help is on the way.

This is Josh Tardy. Thanks very much for listening.

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