Where’s the “Shared Sacrifice”? Proposed budget demands much from working families, seniors, retired teachers and state employees while giving huge tax breaks to Maine’s wealthiest residents

Augusta, Maine (Monday, February 28, 2011)—The Maine Center for Economic Policy (MECEP) and representatives from local government, small business and public employees today raised concerns about the tax cuts and spending priorities in Governor Paul LePage’s proposed budget for the next biennium.  They spoke at a State House press conference moments before the Legislature’s Joint Standing Committee on Appropriations and Financial Affairs began its budget hearings. 

MECEP Associate Director Garrett Martin noted repeated calls for “shared sacrifice” but expressed frustration that the LePage budget “demands much from working families, seniors, retired teachers and state employees while giving huge tax breaks to Maine’s wealthiest residents.”

“This budget cuts property tax relief for working families while providing Maine’s wealthiest 1% of households, those earning more than $360,000 dollars, a $2,700 dollar tax cut,” Martin said.  “It freezes health care funding for thousands of working parents and prescription drug assistance for seniors to save approximately $30 million dollars, while giving away $30 million dollars in tax breaks to Maine’s 550 largest estates.  It undermines the retirement security for teachers and state employees to fund over $200 million dollars in tax breaks, 50% of which benefit households earning over $120,000 dollars.”

Joining Martin were William Bridgeo, City Manager, Augusta; Will Neilson, owner, Solo Bistro in Bath; and Ginette Rivard, Vice President, Maine State Employees Association/Local 1989 Service Employees International Union.  Copies of their statements will be available on MECEP’s website.

MECEP also released “Tax Plan Winners & Losers,” an overview of its analysis of tax changes proposed in the budget.