Maine’s first gubernatorial debate of the season covered a handful of topics focused mainly on economic struggles, including the state’s high tax burden. And, while all three candidates agreed that taxes were high, the split between them was visible quickly.
On the question of “What taxes would you seek to lower and what, if any, taxes would you raise and why? “, Bennett responded that, as governor, he would first focus on property taxes. The Independent candidate then laid out 3 specific goals that includes expanding the Fairness Tax Credit, increased coordination between state and local government functions and creating a medical “waiver” that would move the cost of medical care for medicaid recipients held in county jails. Currently, the county jails are required to pay for an inmate’s medical services while incarcerated. For inmates that lost Mainecare after being incarcerated, Bennett’s waiver would slide their medical expenses onto the state.
Former speaker of Maine’s house of representatives, and daughter of Maine’s 1st US House District representative Chellie Pingree, Hanna Pingree shared that too much of low and middle class income is going to all forms of taxes. Pingree reaffirmed her support for Maine’s recently adopted 2% wealth tax on millionaires in Maine and wants to double the current Homestead exemption and expand the Property Tax Fairness Credit.
Pingree also floated her “big idea” to amend Maine’s constitution to allow higher taxes on non-resident property owners. The former state house representative, speaker of the house and director of Governor Mill’s Office of Policy Innovation and the Future, Pingree did not propose any cuts and argued that the best way to handle Maine’s heavy tax burden is to shift more of that burden onto Maine’s wealthy.
Bobby Charles was up next but was given a different question than his two opponents. Spurred by a comment made earlier in the debate, Charles was asked “You’ve said you would cut income taxes. How much?”
Rather than give a specific number, Charles effectively answered the question given to his opponents and explained which taxes he wanted to lower and how. Charles agreed with both Pingree and Bennett that property taxes were to high and supported increasing the property tax exemption to $100k and providing tax breaks for veterans. Charles also reaffirmed his intent to reduce Maine’s income tax by reducing state spending. The Republican candidate stated he would conduct a review of “all these agencies” and believes a billion dollars could be cut in the first year. Specifically Charles stated he would shrink government with attrition, end energy subsidies, roll back unfunded mandates effecting municipal budgets and cut funding to non-residents.
So, while Charles could not provide a specific number he intended to reduce Maine’s income tax, he did explain how he intended to move toward that direction. Which is something neither of his opponents could provide.
Through Pingree’s perspective, there is no spending issue in Augusta. The issue is that the pool of taxpayers isn’t wealthy enough. Hanna proudly explains how she supports the recently adopted 2% wealth tax as a viable solution while, in the same breath, admitting that Maine doesn’t have many millionaires. But, rather than advocating to reign in spending and admit there are problems with medicaid reimbursement in Maine, Pingree would rather amend our constitution and allow higher taxes on property owned by non-residents.
The Democrat candidates proposal of not reducing any actual spending and shifting more of Maine’s crippling tax burden onto Maine’s wealthy and out-of-state property owners should be no surprise. However, Bennett’s response was surprising. The former Republican state senator turned Independent gubernatorial candidate didn’t propose a single tax cut or spending reduction. Bennett instead proposed increasing the Fairness Tax credit and to continue integrating state and local governments for efficiency.
Bennett’s medical waiver proposal for county jails is a real issue. County jail budgets have been hit hard with increases in health services for inmates with significant mental health disabilities and drug recovery needs. However, Bennett’s solution to shift the responsibility from county to state government doesn’t lower taxes for Mainer’s, it just changes which pot of tax payer money it comes from. The other thing worth mentioning is that, one of the other reasons tax payers have been putting more into the county jail budgets is because of a bill Bennett supported. LD 1971 is Maine’s sanctuary state law. It prohibits Maine’s local, county and state law enforcement from cooperating with ICE or any other federal agency on immigration enforcement. Its adoption, among other things, resulted in significantly less federal funds going to the county jails for holding individuals wanted by ICE until federal authorities arrived. Additionally, the fiscal note attached to this bill states:
“The bill prohibits certain activities between law enforcement agencies and federal immigration and customs enforcement agencies. Several existing Department of Public Safety federal grants contain terms and conditions requiring cooperation with immigration enforcement efforts. To the extent any prohibitions conflict with these terms and conditions, federal funding could be reduced or eliminated. These federal grants total approximately $14 million.”
Bennett, despite not being a sponsor or co-sponsor, brags on the campaign trail about his support for LD 1971 and was the one to read the bill on the Senate Floor for the final vote.
Bennett’s ideas wouldn’t come close to addressing the problem faced by Maine’s tax payers and the fact he expects voters to forget how he proudly voted to end a reliable stream of federal dollars into those very same county jails shows how out-of-touch he actually is with the situation he helped create.
While all 3 talked about increasing tax credits, Charles was the only candidate that proposed actually cutting taxes, not just increasing a tax credit (although Charles argues for doing that too) and not simply shifting a tax burden from the county to the state or onto the few wealthy Mainers that haven’t left, but actual reductions in state spending.
Despite the moderator going for a “gotcha” moment when pushing Charles to provide a specific number the income tax would be reduced, the Republican candidate focused on specific cuts and reductions that would save tens of millions in state spending and explaining the scenario that would permit significant income tax reductions. Neither Bennett nor Pingree provided such a detailed response yet did not receive similar push-back when they didn’t answer the original question of “What taxes would you seek to lower and what, if any, taxes would you raise and why?
Pingree didn’t mention a single tax she would lower, only how she would shift its burden. Her “big idea” of amending the constitution to tax out-of-state property owners higher isn’t a “big idea”, it’s a desperate idea. Pingree, whether she likes it or not, represents a circle of Maine Democrat elites that have been in charge for over a decade. Arguing that any of the programs they’ve expanded should be dialed back even a little is an admittance that they were wrong. Even when faced with the simple math that Maine cannot afford what they’ve been doing, Pingree is still not permitted to suggest any spending reductions what-so-ever. Instead, she admits that the only way Maine can continue spending at these levels will require a constitutional amendment allowing taxes on some people to be higher rate based solely on their residence.
Bennett had effectively the same answer as Pingree minus altering the state’s constitution to do it. He didn’t single out any tax he wanted to lower, argued for increasing tax credits and having the state assume responsibility for specific county budget costs. While Bennett’s attempt to absorb a portion of County jail costs onto the state would certainly help those balancing county budgets, it’s a drop in the bucket he helped make bigger.
Bobby Charles appeared to be the only candidate taking serious the fact that Maine has the highest property tax burden in the country, is in the top 5 states for highest tax burden overall and that the state’s medicaid program (MaineCare) has been exposed distributing tens of millions in tax-payer funding improperly and without oversight.
It’s clear that Charles sees another option that neither his opponents are capable of seeing, let alone enacting. Charles, while crass at times, is proposing changes that would help Maine families immediately and force a desperately needed course correction in how our state manages tax-payer money.
–TMP