State Representative Michael Melerine discussed the potential for a special session on tax reform in Maine. He expressed optimism about the session happening but noted that it depends on the finalization of the tax reform package. Melerine emphasized the need for comprehensive tax reform to make Maine more competitive with other states, particularly by lowering personal income tax and simplifying corporate income tax processes.
He highlighted the importance of balancing tax reductions with maintaining state revenue. Melerine mentioned that while some constituents favor eliminating personal income tax, a more realistic approach might be to lower it to a flat rate. He also discussed the challenges of property taxes, using Texas as an example, and suggested that Maine needs to find a balance that makes the state attractive to businesses without overly burdening residents.
Melerine acknowledged the difficulty of making significant tax reforms, noting that it would require tough decisions and potentially unpopular votes. He stressed the need for full-scale reform rather than minor adjustments to align Maine with neighboring states and attract businesses.
Regarding the state’s budget, Melerine pointed out that spending has increased significantly, especially since COVID-19, and suggested that state agencies need to identify and eliminate unnecessary expenditures. He proposed undedicating some funds and considering constitutional amendments to allow more flexibility in budget allocations, aiming to avoid major cuts to essential services like higher education and healthcare.
Melerine also discussed the timing of the special session, emphasizing the importance of completing it by Thanksgiving to allow for constitutional amendments to be placed on the ballot in the spring. This timing would enable the state to implement necessary changes and address budget issues more effectively.