So, prepare for a tax increase. And prepare also for
the hardy perennials in the way of excuses for our staggeringly high
taxes. You’ve heard them all; we’re a big state, a poor state, a
remote state, and so forth. High taxes, we are told, are our destiny by
virtue of economics and geography. But are they? Hardly.
Fact #1: Maine really does have the highest combined
state and local taxes in America. Despite claims by some that our low
per capita income only makes our taxes feel higher, the fact
remains that Mainers spend a higher percentage of the money they earn
paying state and local taxes than citizens of any other state. The
Washington-based Tax Foundation found that Mainers pay 12.8% of their
income in state and local taxes, the highest percent of any state for the
second year running. What does this mean in real-life terms?
The U.S. Census Bureau, in its "Statistical Abstract of The United
States 2001," reports that a family of four living in Portland making
$50,000 a year, pays $6,227 in state and local taxes, more than the same
family would pay in any of the other 29 U.S. cities they surveyed. When
income jumps to $75,000, the same family pays a whopping $10,319, over
$2,000 more than the same family would pay in Boston and a stunning $3,300
more than the national average.
What about less wealthy families? The Census says that
same family of four making only $25,000 still pays $2,800, second only to
citizens of Philadelphia and still $800 above the national average. Our
taxes feel high because they are. We simply pay more for the government
services we receive than anyone else in the nation.
But what drives those high taxes? Is it our low
incomes, as many claim? Not really.
Fact #2: We don’t pay high taxes because we are
poor. This argument is probably the one most commonly put forth by our
friends in Augusta to defend their unquenchable thirst for our money, but
it is illogical and untrue. We are ranked 37th in per capita income, which
means that there are 13 other states poorer than we are. By the logic of
this argument, they should have high taxes as well, right? Wrong.
Not one of the states with lower per capita income than
Maine pays more in state and local taxes than we do. According to the
Census Bureau, if our family of four making $50,000 were living in
Phoenix, Arizona, the next state lower than us in income, they would pay
only $3,700 in taxes, almost half what the Portland family pays. They
would pay $200 less than that if they lived in Albuquerque, New Mexico,
the third poorest state. So if low incomes don’t explain our high taxes,
what does? Geography? Nope.
Fact #3: We don’t pay high taxes because Maine is big and sparsely
populated. You hear all the time that we’re a big, sparsely
populated state, the fact of which makes it more expensive to provide
government services. Setting aside for a moment that only with the myopic
vision of an Augusta lawmaker could you look at a map of the U.S. and
conclude that Maine is a big state, this argument holds no water either.
Let’s take roads, for example. The Census reports that Maine has 22,664
miles of roads. At little over 20,000 miles, though, little tiny
Connecticut has nearly that much all by itself, and Massachusetts has over
35,000 miles of roads. Surely it costs Maine less to maintain its roads
than it costs Massachusetts to take care of its. "Yes," you’re
saying, "but Massachusetts has a higher population to spread the
costs around, what about how sparse our population is?"
Well, you want a big state, sparsely populated? How
about Idaho, which has a similar climate and has almost exactly our same
population spread over a state nearly three times bigger. Idaho is also
41st in per capita income, poorer than we are, but according to the Tax
Foundation, its citizens pay only 10.4% of their income in state and local
taxes. How about Montana? With 808,000 people, it has three quarters of
our population spread over 147,000 square miles – four and a half times
bigger than Maine – and it has 122,000 miles of roads. Despite all this,
though, its people, who are ranked 46th in per capita income, pay only
9.9% of their income in state and local taxes, one of the lowest rates in
the nation.
The Biggest Fact of All: Maine’s taxes are a
product of politics, pure and simple. As the above evidence indicates,
the old excuses don’t bear scrutiny. Levels of spending and taxation are
decided by politicians and citizens, not by circumstance. Further evidence
that geography is not taxation destiny can be found in our nearest
neighbor, New Hampshire. According to the Tax Foundation, Mainers will
work the equivalent of two full weeks, 14 days more than our New
Hampshire brethren, just to pay taxes.
And are our friends next door suffering for their
frugality? Hardly. New Hampshire has a higher per capita level of income,
fewer people on food stamps, a lower crime rate, a lower poverty rate, and
more people covered by health insurance. And all of this is accomplished
with 3,600 fewer state employees. Is it any wonder that the Small Business
Survival Committee rated New Hampshire the 7th most business-friendly
state and Maine the 49th?
So, it is up to you to decide whether you can stand
paying more of your money in taxes than anyone else in the nation and
still have the state fall short and remain seemingly unable, even
unwilling, to make the most basically sound economic decisions with all
that money.
If you can’t, the election is approaching. Time to
make your voice heard.
Stephen Bowen lives in Rockport and teaches in Camden. He is a
candidate for the Maine House of Representatives representing both towns.