AUGUSTA, Maine — Opponents of Gov. Paul LePage’s plan to close a $220 million shortfall at the Department of Health and Human Services pitched alternatives Wednesday in the wake of the governor’s State of the State address.
Engage Maine, a coalition of progressive groups, proposed reforming MaineCare without dropping any recipients from the rolls and ending tax breaks for Maine’s wealthiest residents. The coalition said it hoped to spark conversation about responsible ways to address the shortfall without sacrificing services to Maine’s elderly, disabled, children and the poor.
“What Gov. LePage has presented is dangerous and irresponsible, which is really why we presented these alternatives,” Ben Dudley, executive director of Engage Maine, said by phone after a noontime press conference.
LePage has proposed overhauling MaineCare, the state’s version of the federal Medicaid program, to close the DHHS shortfall over the next year and a half. His plan w ould eliminate coverage for 65,000 recipients, tighten eligibility requirements and cut services to bring MaineCare closer to national averages for public health benefits. He reiterated during Tuesday’s State of the State address that the program will run out of money in early April without his cuts.
The Legislature’s Appropriations Committee is deliberating over LePage’s plan and could take a final vote before the week is out.
Engage Maine said the state’s wealthiest 1 percent pay an effective state and local tax rate that’s 12 percent lower than the average Mainer’s. Making residents who earn more than $350,000 a year pay “their fair share” at the average state tax rate and restoring the 2010 tax rate for those earning more than $200,000 annually would generate $72 million a year, said Garrett Martin, executive director of the Maine Center for Economic Policy, a member of Engage Maine.
He pointed out that the state is spending less General Fund money than it did in 1998, in inflation-adjusted dollars.
“We don’t have a spending problem here,” Martin said. “What we have is a revenue problem.”
Raising taxes won’t solve a shortfall driven by rising MaineCare enrollment and greater use of health services, Adrienne Bennett, a spokeswoman for LePage, said Wednesday. “We can’t tax our way out of a problem of this magnitude,” she said.
Engage Maine’s plan also includes longer-term fixes. It does not fully address the immediate $220 million shortfall at DHHS.
The coalition proposed better managing care for MaineCare’s most costly recipients to prevent expensive acute and emergency room treatment and eliminating reimbursement costs for avoidable conditions. Engage Maine also advocated that MaineCare serve only as a last resort for residents with access to private health insurance and veterans benefits.
“We’re talking about the long-term sustainability of the program that is not only more efficient but also leads to better care,” said Sara Gagne-Holmes, executive director of Engage Maine member Maine Equal Justice Partners.
Bennett said LePage’s plan does just that, while preserving MaineCare coverage for 280,000 of Maine’s most vulnerable residents.
“Right now, we need to focus on creating a sustainable system, one we can afford,” she said.
Engage Maine was joined by representatives from the Maine Medical Association, the Maine Small Business Coalition and the Roman Catholic Diocese of Portland.
The medical association also joined a separate call by health care advocates to raise Maine’s $2-per-pack cigarette tax to help close the DHHS shortfall. Hiking the tax to $3.50 a pack would generate $48 million in fiscal year 2013, as well as reduce teen smoking rates and lower short-term health care costs, the coalition said in a press release.
Tobacco use costs Maine’s health care system more than $600 million every year, $216 million of which MaineCare picks up, the coalition said. LePage’s plan slashes state funding for tobacco prevention and cessation programs.
The governor maintains his previously voiced opposition to a cigarette tax increase, Bennett said.
I would be interested to know what the 1%’s percentage is of all taxes collected? Would they be paying 15%, 20%, 30% or more of all taxes collected? That to me would be a meanigful number.
In order for that number to be meaningful, you would also need to know what percentage of the overall wealth of the state that those at the very top possess. If, for example, the top 1% paid 50% of all income taxes, but controlled 70% of total wealth, would that be a fair comparison?
It should also be noted that percentages like this are a little misleading. Since they’re only based on income taxes, they don’t include sales taxes, gas taxes, etc. Those smaller taxes hit people with lower incomes harder, as they constitute a larger percentage of their available or disposable income.
What do you define as controlled wealth? The smaller taxes are an issue for lower income people and that is why I’m shocked to see this group want $1.50 tax increase per pack, on smokers. I would guess most 1% are not smokers. I find this income inequality rhetoric similar to what one might have heard in Russia, circa 1917.
Interesting NOBAMA wants the Buffet/Romney rule which he mentioned last night that would start taxing the “rich” starting at no less than 30%. The Liberals think we can tax and spend our way out of this. Spending cuts and Spending Caps are necessary at all levels of Government .
I heard Gov. Lepage indicate yesterday that the “welfare” budget had increased one billion dollars in the past decade. I assume that inflation accounted for only a small share of this increase for a State with a very stable (if not decreasing due to migrating seniors) population base. What would be the impact of going back and accepting a budget which might be halfway (or less) between 2001 and 2011 while accounting for inflation? Policy makers and politicos should assess the impact of such a proposal. I sense that the actual percentage will be far less than 50% to balance / fix the budget. I think that this same principle of budget retrospection would lead to other savings without drastically affecting quality in some big departments like Education.
On a somewhat related note, Maine Government should establish a mechanism to allow volunteers to become involved in the operation of State of Maine departments as a way to increase the capability level and to ensure accountability.
Of course we don’t know what cloud he picked that number from like he has most of them.
These are not alternatives. Not one of these ideas can close this year’s shortfall.
And Martin seriously…we don’t have a spending problem, we have a revenue problem? Well, what do you do when you have a revenue problem? You live within the revenue. Especially when those people who are paying your bills are saying they don’t want to pay you more.
I am always suspicious when people toss out statistics that hide more than they reveal. Could someone tell me what the effective tax rate paid by the average Mainer is? And what is the rate paid by the top 1% of Mainers? And why are you lumping state AND local taxes into this, when the State has no control over local taxes?
The middle class disappears due to pro-corporate politics, people suffer worse and worse, and you shamelessly support the continuation of corruption.
I would call continuing to raise my taxes and taking money out of my family budget in order to feed the ever expanding welfare state the very definition of corruption.
You would be hoodwinked by ultra-rich people who want you to think just that–while they take more and more, and encourage the rest of us fight each other as a diversion.
Remember that both sides of the aisle have their fair share of the “ultra-rich.” Just saying…
Explain something to me, who are these people that make more than $350,000 and what do they do for work? Do you know any of them?
Donald Sussman, Mr Chellie Pingree is the person I think these liberals are referring to, he runs a multi billion dollar hedge fund, flys around in Polama Partners Lear Jet 1 and takes his pals like Barney Frank and Nancy Pelosi on tour telling the middle class to pay more taxes!
But they would also pay more in the taxes they are raising. So they are walking the walk and talking the talk. While people like Mitt Romney and Newt Gingrich are dong all they can to lower the taxes for the wealthy, like lower or getting rid of completely the taxes on interest, dividends and deferred taxes which is what most of their income is.
I believe the rate on dividends from investments( note everyone who has investments has already paid taxes on these,) is 15%. So if all their income is from profits/dividends then they pay 15%. Of course at some point they probably are in the 33% or whatever the top rate is.
I just pointed out that Sussman and Pingree always want to raise taxes while most of use want reduced spending, reduced welfare and most dont begrudge people who are succesful.
The rate on dividends, capital gains (I should have used tht instead of interest) and deferred taxes is no higher than 15%. It is similiar to income tax in that the rate of taxation is starts lower than 15% and increases up to a max of 15% depending on teh amount of income.
The rate on those types of income never exceeds 15% unlike wages earned while actually working for a living. How else could Mitt Romney only pay 13.4% tax on his $40 million dollar income?
I don’t begrudge people who are successful but the very rich do not pay their fair share of taxes for what they receive from government expenditures. Who do you think benefit the most from government spending other than the richest people in this country?
I think you need a bigger tin-foil hat there pal…
Great, solutions coming from America’s # 1 problem, progressives
progressives, ideas so good they have to be mandatory!
Better then the solutions of the conservatives trying to take us back to the robber baron years
toss out statistics? why not toss out the REAL numbers? Why not toss out those numbers that your administration’s commissioner did or didn’t do? Why not toss out all of the numbers?, why not toss out the numbers on the expenditures of the Blaine House and travel? Why not toss them out? We are beggin you to
His “personal papers” belong to us! He’s not the most important person in the world…..Richard Nixon thought the same,…..he resigned.
Any man that formulates a scheme so that the manager’s of a company (which he was) were able to receive health care and other benefits at an affordable rate, and deliberately exclude the hourly employees via outrageous rates, doesn’t hold much in the “respect” for your business privy to me.
“We don’t have a spending problem here,” Martin said. “What
we have is a revenue problem.” …and even with cuts or no cuts guess what’s
going to be the solution very shortly?
If the state cuts funds to towns and cities then the towns and cities will have to pick up the slack and they will. When they pick up the slack it will mean an increase in local taxes for that community.
That is how the state can either help or hinder the local communities.
“What Gov. LePage has presented is dangerous and irresponsible, which is really why we presented these alternatives,” Ben Dudley, executive director of Engage Maine, said by phone after a noontime press conference._____________________________________________________________
If that is dangerous, I wonder what they call a poor state offering coverage at to people who are well over the federal poverty level. Yeah, a “revenue” problem is what we have. Sure, we never spend too much, we just need to tax people to death. It is scary that some people think this way.
They are not proposing a tax increase to all Mainers – it didn’t say anything about that in the article. What they said, simply, is proposing a tax increase to Mainers that make over $350,000 – and returning the tax rate to those making more than $200,000 a year back to the amount it was in 2010, meaning that there was a tax reduction given to the wealthier residents of the state.
I don’t think it would fix all the issues, and I don’t believe it would fully fund MaineCare without changes to the system overall, but unless you fall into that tax category, I’m surprised you would argue against the raise. It wouldn’t be in the attempt to “tax people to death”, it would be in the attempt to have the percentage of taxes paid equal out a bit – why should you pay LESS because you make more?
If everyone is supposed to pay ‘their fair share’, why are we leaving it up to the middle class to pay more, when the most wealthy in our state pay less? I consider myself to be open-minded – I would love for you to explain it to me.
how long before the 350.000 level drops to 100.000 then 50.000 if you do not fix the problem.Stop spending others earned money and live within our taxed means .This joke that anyone making more then I do needs to pay my bills is nothing more than campaign rhetoric.What entitles us to more and more from someone that has been successful.When did we turn our country into a bunch of spoiled little kids that feel everyone owes them.We are starting to punish success that will ruin this country.With a president that rewards mediocracy, preaches how bad successful people are yet he has a billion to campaign with.Where does he think that billion came from.Low income maybe?
This makes sense. Time for rich people to pay their fair share.
The taxes on cigarettes should be more like $10/pack.
Alcohol should be taxed at the same rate cigarettes are taxed. Maine would be in a world of hurt if everyone quit smoking since the state has been funding government on the backs of Maine smokers for years now.
I dont smoke but if I did, I would be buying mine out of state, for 10$ tax I would go to NH and make a day of it and stock up.
So your tax rate would go up and revenue from it down? You people in Augusta need to start thinking?
THe Governor wants to lower tax rates and draw more business into Maine to increase the tax base, so rates go down and revenues go up, but that is a very difficult concept for Democrats to understand.
Once again, PLEASE GIVE ME A BREAK. Many of those who use MaineCare are also smokers. Additional tabacco taxes will not solve the problem. Do you bleeding hearts really think those have-not will quite smoking? Change the rules, make it tougher. It’s time to stop the freebees for the non-payers. Let them pay their own way or find a job elsewhere. All of us who pay our own way are sick of taking care of those who expect the State to support them. Sorry, it’s time to MAKE THE CUTS.
I agree, instead of cutting people from mainecare they should screen and cut the ones who should not be on mainecare. Cut the smokers, drinkers, and drug addicts and I bet you would pretty much have your 65,000 people that you want to drop instead of dropping the elderly who need health care.
…..
Only problem is, the majority of those affected already have jobs!!! They just don’t earn enough to pay for private insurance.
This is the same old failed non-solutions that helped put Maine in the sorry situation LePage is trying to get us out of. Raise taxes on anyone and people leave the state. Raise taxes on cigarettes? You gotta be kidding me! A few people will quit. That’s good, but you lose tax money from those dang quitters! Those that don’t quit get their smokes from out of state. We’ve been through this before and the liberal tax and spenders never learned a thing! It just seems like they’re just getting dumber. A couple of years ago some Augusta “rocket scientist” suggested taxing bird and wildlife watching. Will someone please save us from these idiots.
“A couple of years ago some Augusta “rocket scientist” suggested taxing bird and wildlife watching. Will someone please save us from these idiots.” and let us not forget the bike tax ……..
Progressive mantra:
If it’s alive, tax it.
If it moves, tax it.
If it’s dead, tax it.
Move to Somalia, no taxes
much more liberal spending and we wont have to move.
I think you meant to say if it is tax it.
There are many taxes that do not fit your three property for one.
Gov. LePage is trying to save us from these idiots, but he needs more help. Too many people benefit from the old liberal ways.
Gov. Lepage indicated yesterday that the top tax rate is in effect for an income (i.e., adjusted grass income) greater than $20,000. Assuming that this is true, a flaw seems to exist in the system which favors higher income. Under the federal tax system, the top rate is arrived at around $250,000 or greater. Under the State of Maine system, the higher rate should occur at a level greater than $20,000; otherwise, the vast majority is subsidizing the truly wealthy. I agree that a change in the tax code will not resolve the problem this year but it would provide relief and fairness for subsequent years. For this year, the solution is to fill the gap with some acceptable strategy.
LOL Martin you do not have a spending problem?….it’s a revenue problem? UMMMM yes you do have a spending problem…open your eyes about the welfare system in this State to anyone who walks across the border…. You have been there too long time for you to get another job.
Other than vague suggesgtions of “tax the rich,” there seem to be no actual suggestions for solving the budget shortfall and paying for the benefits. Increase the rate on Mainers making over $350,000. Does this guy know how few taxpayers this actually is and how little would be raised. The group appears to admit that their suggestions don’t actually address the current revenue demands– it’s just another proposal to kick the can down the road. Stop spending.
According to the article it’s $72 million in tax revenues on those making over $200,000. That alone reduces the shortfall by nearly 1/3.
Those numbers do not add up, Seamus. According to the Tax Foundation, in 2009 only 10,000 returns reporting gross income in excess of $200,000 were filed in Maine. A significant majority of these were two earner couples, married filing jointly. The most recent change in the maximum income tax rate was .55%. For someone making $200,000, a .55% savings is around $1100. In order to raise $72,000,000 from 10,000 returns requires, on average, an increased tax bill per return of $7200. It’s’s going to require a lot more than restoring the 8.5% top bracket rate which was in effect last year to make up $72,000,000.. Further, the individual wasn’t talking about taxing $200,000 taxpayers– he’s talking about those making more than $350,000. That’s a much smaller group of folks. Face it, there just aren’t that many “rich” taxpayers around.
Unfortunately, I don’t believe we can agree on the facts. The Tax Foundation v. Engage Maine.
However, I think I got the $200,000 right: “Making residents who earn more than $350,000 a year pay “their fair share” at the average state tax rate and restoring the 2010 tax rate for those earning more than $200,000 annually would generate $72 million a year”.
Now I can’t decide if I should declare 349,000 or 199,000 a year.
Smokers again have to bail out medicare…Stupid! Perhaps the State of Maine should go back to buying stocks in Cigs instead. Cigs stocks was the number one revenue for the State of Maine untill they went all “Oh My” can’t let them all kill themselves. Give me a break Gigs are not the root of all evil! It is time for the wealthy to pay a fair share of Taxes and to generate enough revenu to pay our bills. The State of Maine needs to pay their bills and the People of Maine need to pay their taxes everyone needs to do what they can. The bottom line, however is that we need Jobs in order to make a living inordert to pay taxes so that the State of Maine can pay their bills. With out jobs no one is going to be able to do anything. So lets get a big bonfire going down town and we can start binding the little ones, the homeless, and the sick and disabled up like cord work and heap them onto the fire.
“It is time for the wealthy to pay a fair share of Taxes and to generate enough revenu to pay our bills.” Wow. That is a revealing statement! Have you ever looked into who actually pays taxes? Do a little research on the IRS website it would be very enlightening for you.
Maine is the 6th highest taxed state in the country, so REVENUE IS CLEARLY NOT THE PROBLEM that caused the DHHS budget shortfall. The problem is our welfare system is 35% above the national average and Maine cannot afford that any longer. I’m all for lending a helping hand to the truly needy, such as our disabled or elderly (of course our elderly get Medicare). We should also lend a helping hand to those that fall on TEMPORARY hard times. However, currently 1 out of every 4 Mainers is on Medicaid. It would be insane to believe that 1 out of 4 Mainers are disabled or elderly. The last time I visited Wal-Mart, I don’t recall seeing that many people with physical or mental disabilities walking in the store. Could it be that our Medicaid program is too generous? YES, it is absolutely too generous and as a working taxpayer, I resent it. This is absurd and clearly Maine’s Medicaid program needs STRUCTURAL REFORM to prevent future budget shortfalls from sapping into every state departmental budget that Maine’s economy depends on.
Medicaid expenditures have increased by 1 billion dollars (78%) since 2002. Isn’t it a fair question to ask if the Maine taxpayer can afford another 78% increase in Medicaid in the next 10 years? Are we prepared to compromise on the safety of our roads, bridges collapsing, education system crumbling, teacher layoffs, public safety compromises, etc., all to pay for an ever increasing Medicaid system that the Maine taxpayer cannot afford? I think NOT! Medicaid needs to be structurally reformed to prevent another larger budget shortfall from occurring in the next budget cycle. REVENUE IS NOT THE PROBLEM!!
We elected our legislature to lead, NOW LEAD and how dare anyone say that the root cause of the DHHS budget shortfall is because we Mainers are under taxed.
Tax and spend, sped and tax, same liberal failed policies.
Emily and John Martin should just give the Governor a list of DHHS cuts equaling 120 million, they are the ones who created this bloated welfare system?
Or since there are 250K people on these programs, just cut 420$ from each of them and that will equal 120 million, about 1 cup of coffee a day, is that too much to ask?
It’s not ” Progressism”, it’s ultra “Liberalism”. Changing names doesn’t change a flawed agenda designed to protect us from ourselves any more than a “Common Sense Gun Regulations”name change alters the goals and intents of “Gun Control”. Shame on BDN for perpetuating a wolf in sheep’s clothing. Ken
It seems to me this raising taxes bit has been well tested over the last 40 years, making this state one of the poorest and over taxed states in the country. Time to go in the other direction.
…
Yes. But how much is enough? Notice the words “have” more instead of “earn” more. Typical class warfare rhetoric. I worked my way through school to get an education. I work hard. I save my money. I don’t spend it on things I don’t need. I invest wisely. And because I “have” more I need to give it to someone who doesn’t work harder than me. Doesn’t save their money and spends it on things they don’t need. Where does it end? You libs make me crazy!
Blah, blah, blah
You blah, blah, blah. Me fed up.
…
Stop taxing smokers and start taxing ALCOHOL. Tax it at the equivalent of 5 cents per serving. That’s not an outrageous amount and it would generate a ton of revenue.
get rid of the income tax outright, and I’m on board ol’ wenchy
oh, and BTW, I brew my own beer…good luck with the tax!
Much of these problems with revenue in this country would be resolved if capital gains were taxed at the same rate income is taxed. The most wealthy Americans generate their income from investments and that income is not taxed as if it were income, when it IS income.
Well maybe the Progressives could have a telethon to raise the money they are short. I do not want to keep working to suport other peoples babies. Have um, feed um, provide insurance for them no matter how old they are. The people that are just now having babies are going to have to do that. Because when those babies grow up something will have to give if everyone is on some form of welfare. I think the only people that should take out of the system are people that paid in. We should be taking care of our elderly and disabled Military.
I assume you’re in favor of abortion, then
No Birth control. People know what causes pregnancies.
Liberals have always been good at spending other peoples money
Liberal states are the ones that pay into the Fed, actually. Welfare states are almost all Republican.
Why don’t they call themselves what they are? Liberals. Progressive sounds so new and polished…and deceptive. They are liberals who believe in socialism.
Will you be rejecting your Social Security check and refusing to use Medicare when you turn 65?
Please, whoever named this group progressive? Taken together it acts as a huge anchor of Keynesian oriented, big government, big brother obstruction.
John Martin will out think, out politic, out class anything that Bennett or the governor has. This is not a man shooting off the cuff, this is a man that teaches those classes that both Bennett and Le Page may have taken.
If John wanted to, I bet he could beat the governor or anyone of the senator’s. The man knows what he is talking about. But why would he do that, he’s having way too much fun. Run against Collins, John, show them that Aroostook County does indeed matter and that you will not be ignored. Like Speaker Martin or not, he knows his stuff and has done nothing but serve his district, which is what is expected of all members.
Who has he served in his district, certainly not the hard working taxpayers?
Adrienne Bennett obviously doesn’t really understand what they are talking about. They are speaking of alternatives, different ways, and sort of spreading the hurt around. Not just slashing and cutting to balance their non conformity of basic accounting practices. What did the article say earlier? a 6% increase since 2006? Why is it now chaos? Because SOMEONE didn’t pay the bills, someone created this crisis……hmmm?
“We don’t have a spending problem here,” Martin said. “What we have is a revenue problem.”
The words the liberal leaders of Maine for the past 40 years have clung to. As EVERY working Mainer will tell you you can not spend money you do not have. We the working people make X we do nto spend more then X easy 1st grade math. Unlike the state when we have X we can not go to our employer and say hey bud sorry but we spent to much last year so you have to pay me twice as much this year. The state and fed do it EVERY year.
STOP SPENDING!!!
I’m curious: is a “progressive” group anything like a liberal group??
Just wondering!
Again lower medical cost, get rid of insurance companies.
Here’s a scam, my insurance company sent me a list of places to seek financial help towards paying medical bills. All government agency. Ha-ha right lets see medical is too expensive, taxes too high, insurance is useless, but hey go to your government and up your taxes even more. Too pathetic to insult.
Typical liberal answer to any fiscal shortfall, tax more and more. How about we look at curbing spending, as the rest of us must do in our personal lives. That is the problem with the failed liberal agenda, tax and spend.
All i have to say is People like Romney who make 56,000 a day should pay 30% tax on their income just like the poor guy that makes 20,000 a year.. Is it fair thet Romney pay only 14% tax and make 56,000 a day, vs the guy that pays 30% and he makes 20,000 a year? I do not see the fairness in this.. Why don’t big oil companies pay taxes? Why are they bragging and throwing it in our faces that they are making record breaking profits? These loopholes and tax breaks are breaking our economy’s back.. Why do you not see this? Clinton didn’t have these loopholes and our economy was thriving, we were in the black for once and here comes Bush creating all the loopholes and tax breaks and now our economy is in the tank.. It don’t work Ronald Reagan tried it and it didn’t work for him why would it work now.. Close the loop holes and stop giving tax breaks and our economy will pick up..
Same old crap, Overtax the people who made somthing of themselves thru hard work and give to the lazy welfare bums. Or the 3rd. generation welfare dependants.
This state needs to enforce a program, where if you receive a check then you are going to earn it. Thru community service , soup kitchens, sweeping the road just something. And why can`t they tie a fingerprint check with their foodstamp cards. The fraud that goes on there.
There should not be any percieved or real threat to any person who has no alternatives, about their Maine Care benefits. These people are the elderly, permanently physically or mentally disabled, the chronically ill, and children. These Maine citizens cannot “get a job with benefits” like the LePage administration suggests. It is inhumane and downright cruel to even consider taking these people off benefits. Threatening these people is another from of bullying.