How should Maine’s tax system be reformed?

Posted Feb. 02, 2009, at 6:20 p.m.

Democratic leaders in the Legislature are considering a plan to broaden the list of items on which sales tax must be paid, perhaps extending it to services such as haircuts and lawyer visits, and to products such as newspapers and some food. In exchange for that new revenue, they are considering lowering the top income tax rate and the threshold at which it kicks in. Are there better ways to spread the tax burden more equitably? Should the sales tax rate be raised? Should businesses pay more? Or is the answer to cut state spending further?

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