Letter to the Editor

Taxes, minimum wage and revenue

Thu, 01/15/2015 - 8:45am

    Dear Editor:

    Gov. LePage has been very happy these past few weeks, yet his proposed budget looks doomed when compared to the positive change in California this December. LePage is more fun to watch when smiling so I hope he pays attention to these revealing economic realities.

    Taxes were cut in Arizona, Kansas and Wisconsin, and those promised economic returns before votes were taken did not materialize, and now those states are in trouble. On the other hand, California returned to fair taxation increasing income taxes for the wealthy and corporations. By December not only had revenues increased above projections at voting time, the increase was $3.6 billion more.

    A few years back California was mocked for failures. Now with the exceptional increased income revenues they are able to fund education, to build road and water infrastructures, reduce carbon emissions, and grow the economy. With minimum wages raising again in 2015 the economy will continue with its positive upward trend line. While Gov. LePage stated the minimum wage in Maine should be $20, it was not proposed in his budget.

    Arizona's corporate income tax dropped from 6.5 percent to 6.0 percent as part of a multi-year package reducing it to 4.9 percent by 2018. They are already in financial trouble. Kansas and Wisconsin have no corporate income tax and they cut personal income taxes and are now struggling to meet their needs. When revenue cuts are proposed it is always touted to boost the economy. Historical evidence has not found that to work. Since the GOP is intimately aware of this effect and still they persist, whether under a Republican president or a Republican governor, they implement economic plans that will fail.

    The question I offer up for consideration is why are these governors happy with results that do economic harm to their state and their constituents?

    Jarryl Larson

    Edgecomb