Prospects for Tax Reform in Maine

Baldacci backs budget cuts, is silent on tax reform. So reads the lead-in to the Press Herald's coverage of last night's State of the State address in Augusta. Governor John Baldacci made no mention in his 39-minute speech of the tax-reform efforts that stalled in the Legislature in 2007. He was later criticized for the omission by Senate Minority Leader Carol Weston, R-Montville. On the other side of the aisle, House Speaker Glenn Cummings, D-Portland, cautiously suggested that the Legislature may tackle tax reform with or without the Governor's prodding. "If that has to begin in the Legislature, it will begin in the Legislature," Cummings is quoted as saying.

But will it begin in 2008? Ballot initiatives over the past several years indicate that Mainers are ready for change. Economic malaise should not be used as an excuse to delay tax relief and reform. Indeed, the best way to combat recession and unemployment is to take the shackles off small businesses. 2008 will be the year that sees either meaningful tax reform or the election of new faces in the Legislature that will make such reform a top priority in 2009.