| "I believe that last year the 121st
Legislature laid the groundwork for LD 1. We flushed out details that enabled the
governor's tax proposal to move forward," said Senator Joe Perry while talking about
the overall work that led to comprehensive property tax reform, adding, "It was a
great bipartisan effort, working on the committee that pulled together LD 1. It's the
start of tax reform for the state of Maine." Currently
Senate chair of the Taxation Committee, Perry brings with him the experience of the last
eight years as a representative of the House, a history that gives him a depth of
understanding of how to improve Maine's tax system, having served on the Taxation,
Insurance and Financial Services committees.
As a former owner of two convenience stores in Bangor, he
is well aware of the challenges that face small businesses in the state, as well as being
informed about what his constituents are thinking. In fact, his businesses propelled him
into politics. His customers would come in daily and talk over what needs improvement in
Bangor and Augusta.
As Governor Baldacci listened to all the customers that
came through his family's restaurant while he worked there, Perry, in a similar light,
absorbed what his customers informed him about. Finally Perry felt it was time to make a
real difference in their lives, and he ran for office.
"I knew their problems; I knew what they needed, so I
felt I could honestly represent them," he stated. Perry likes working with, as he put
it, "numbers - to get to the nuts and bolts of a challenge," so chairing the
Taxation Committee is a perfect fit. Perry is also a member of the Inland Fish and
Wildlife Committee.
Perry wishes that more people understood the need for taxes
to support programs they want to see continue. He believes that the more people comprehend
where their tax dollars are being spent, the less complaint there would be about taxes.
"Most people don't want to see cuts to needed
services, but at the same time they want their taxes to decrease," he paused, adding,
"Taxes are a contribution that we all need to make to keep society functioning."
Perry explained that when it is stated that Maine has one
of the "highest tax burdens in the country," the figures used to determine this
"burden" are based on comparing Maine taxes to Maine incomes. Because Maine is
not an affluent state, the tax rate is high relative to Maine incomes. One of the key ways
to improve this dilemma, Perry believes, is to invest in people.
"Once you invest in people, you improve their chances
for a better-paying job with benefits," said Perry. Perry sited the example of what a
dental hygienist would earn-approximately $25 to $35 per hour, after being trained-and
compared those earnings to a minimum-wage employee who makes $6.35 an hour. The difference
is obviously staggering. As he stated, "Continued investments in education and
training will increase the chances of better-paying jobs with benefits for the people of
Maine: investments in research and development, in infrastructure ... the overall bond
package. The more incomes go up, the more Maine's tax burden will decrease. The bottom
line is that investing in people, as the governor is doing, will help lower our overall
tax burden.
"My goal as taxation chair is to move the agenda
forward, building upon our progress. It's a challenge to modernize the tax code, making it
fairer while the economic climate is continuously changing. Maine's economy will always be
evolving; we need to progress the tax code with it, as we move forward into the 21st
century," concluded Perry with conviction in his voice.
This article was published in the
Maine Democrat in March 2005. As of September 2006
according to two independent economists, LD 1 provided property tax relief in 2005.
Property tax growth dropped from 5 percent to 1.7 percent. Maine residents received $65
million in property tax relief; businesses received $10 million.
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