Beverage tax repeal effort succeeds
11/4/08 | 24 comments
Question 1

Beverage tax repeal effort succeeds


By Abigail Curtis
BDN Staff

Shortly after midnight, supporters of a repeal on a new beverage tax celebrated their victory in Portland.

“When we started this effort seven months ago, we were confident that if Maine people had a voice on these new taxes they would reject them. And clearly, based on the numbers here tonight, they have done so,” said Newell Augur, spokesman for political action group Fed Up With Taxes.

With 73 percent of precincts reporting, the Dirigo beverage tax repeal was cruising to a comfortable victory with about 63.5 percent of voters in support.

Click here to see updated, statewide election results.

Gordon Smith, a spokesman for the No on One campaign, said that he was disappointed in the result but that it was nonetheless a night to be optimistic.

“We’re very proud of the campaign which we waged with limited resources against a very well-heeled group. We’re proud of every vote we got,” he said.

In a statement conceding defeat, No on One coalition members said that there now is “a lot of momentum in Maine to continue working on our problems with health coverage and especially keeping our kids healthy.”

Tuesday’s vote overturned Maine’s recently enacted law that levied a tax on soda, beer and wine to help pay for and expand the state’s DirigoChoice health insurance programs.

The state’s DirigoChoice programs remain funded by the unpredictable and unpopular Savings Offset Program, which taxes health insurers based on the state’s estimated cost savings from the insurance programs.

Under the new law, the Savings Offset Program would have been replaced by a 1.8 percent surcharge on health insurance claims and the excise tax on beer, wine, soda and other sugary beverages.

The state estimated that together, the surcharge and the excise tax would raise $50 million in the 2009 fiscal year and would replace the controversial funding.

“I think the folks that are supportive of a yes vote say that Dirigo doesn’t work and it’s ludicrous to raise taxes for something that doesn’t work,” Gino Nalli of the Muskie School for Public Service said Tuesday afternoon. “I don’t think we’ve had the honest conversation of whether Dirigo is working or not. Is Dirigo working? Is it part of the solution?”

Nalli said that it would be hard on the health insurance programs to revert back to the Savings Offset Program.

“Dirigo will continue to have this uncertainty and this controversy associated with its funding, which is not healthy for the program,” he said. “It’s going to have a negative impact on Dirigo.”

According to the health policy expert, it was “shrewd” of Fed Up With Taxes to sell Question One purely as a tax issue and not as a health care issue.

Voter Mike McGovern of Orono saw the referendum as a tax issue, and he said that it is a bad time to raise taxes.

“The economy is so bad. Extra taxes will just be passed on to consumers,” he said outside the polls.

Another voter, David Kneeland of Old Town, had a different take on the new tax.

“I’m not opposed to it because I think it’s important that we fund health care,” he said.

Several other voters mentioned the confusing wording of the question.

“It was a tricky one,” said Kristen McAlpine of Old Town. “You have to vote yes to say no.”

One political expert cited Fed Up With Taxes’ superior funding and marketing. The political action group raised more than $1.5 million between July and September of this year. In comparison, the opposition raised just $42,000 in the same time period.

“They were louder,” said Mark Brewer, a political science professor at the University of Maine, of the Yes on One efforts. “Louder doesn’t always win. It all depends on which side is more successful at getting the public to look at the question through their frame of reference.”

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Comments
24 comments on this item
On 11/5/08 at 5:55 AM, SunandClouds wrote:         Repeated separate thumbs down will cause comment to be hidden

Is this just a start? Now that this tax has been repealed will the people start voting to cut and repeal other taxes? Maybe the State is going to have to start cutting taxes and programs so that the people won't go to extremes. Some taxes are needed but I'm one who thinks alot of give aways could be dropped and some of our taxes cut back. Guess we will see what's next.

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On 11/5/08 at 8:37 AM, pcme2000 wrote:         Repeated separate thumbs down will cause comment to be hidden

I am glad that the Yes vote passed. It is not a good ideal to tax everyone for a limited few. Maybe now this program will just go away and we can put the funds toward a program that does actually work.

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On 11/5/08 at 8:45 AM, Tikitorch wrote:         Repeated separate thumbs down will cause comment to be hidden

I am glad this passed... and wish the casino had passed. The $$ from the Resort/Casino would hav ebeen a big boost to our budget!

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On 11/5/08 at 8:51 AM, SteveyDee wrote:         Repeated separate thumbs down will cause comment to be hidden

Now they will just tax something else. What was the tax anyway? 3 cents a bottle?The money has to come from somewhere. They will tax something else to make up the short fall. Maybe up the taxes on gas??????

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On 11/5/08 at 8:57 AM, PabMainer wrote:         Repeated separate thumbs down will cause comment to be hidden

Great point Stevey....the programs won't disappear, so Baldy will be looking now for alternative financing....

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On 11/5/08 at 8:59 AM, jgordon wrote:         Repeated separate thumbs down will cause comment to be hidden

I'm all for reducing the the tax burden and wasteful spending however what bothers me about this effort is that it was funded by the business community. Where were they when hundreds of millions of dollars were on past ballots in the form of bond issues? What about $59,000,000 high schools and $39,000,000 middle schools with performance centers when existing buildings could have been rehabbed? What about unnecessary jails, make-work road projects, community beautification projects, and all the other civil projects that are not necessary? Why aren't these same business interests opposed to those taxes? Meanwhile there still isn't an answer to funding healthcare for those that need it.

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On 11/5/08 at 9:02 AM, downfleeced wrote:         Repeated separate thumbs down will cause comment to be hidden

Dirigo has appallingly failed at coming even close to its initial program goals, unfortunately we aren't going to see its demise until people wake up and stop voting in the idiots that most people voted for AGAIN and Baldacci is out of office. What is this folks....10th time is the charm? Do you actually think that they might get it right this time? Come on....And Maine slides even futher...:-(

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On 11/5/08 at 9:42 AM, thekingofmaine wrote:         Repeated separate thumbs down will cause comment to be hidden

FINALLY. Mainers have come to their senses about Baldaci and his taxes. To SteveyDee, it wasn't 3 cents a bottle, try more like $.35 a 6 pack of not just beer, soda! so thats like what... $.6 a bottle. thats lame. This state and Dirigo and its entire overtax and overspend philosphied governor need to be told that maine doesn't need this. I am glad it passed. Im not sure about the president "elect" but I am GLAD this passed, and its time for a change in Augusta.

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On 11/5/08 at 10:22 AM, JJHampden wrote:         Repeated separate thumbs down will cause comment to be hidden

BDN Staff wrote; "Shortly after midnight, No on One proponents in Portland celebrated their victory in getting Maine’s new tax on beverages repealed."

? ? ? Hello, does the BDN editor proof anything? Guess they were confused?

The main reason this was repealed was because the legislature tried to sneak in another tax to fund a failed pet project.

Socialism is NOT the answer !

.

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On 11/5/08 at 11:11 AM, thekingofmaine wrote:         Repeated separate thumbs down will cause comment to be hidden

JJHampden... i was thinking the same thing lol

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On 11/5/08 at 11:34 AM, ChrisM wrote:         Repeated separate thumbs down will cause comment to be hidden

To jgordon, you mentioned "funding healthcare for those that need it". Why don't we just put everyone on welfare, let the government take our whole paycheck, and then let the government dole it out as the government deems appropriate?

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On 11/5/08 at 11:39 AM, ChrisM wrote:         Repeated separate thumbs down will cause comment to be hidden

JJHampden, I agree that "socialism is NOT the answer", but that is exactly what the majority of this state and nation have voted for. Get ready to keep less of what is yours. Also, I don't know what this civilian military Obama has up his sleeve is, but it certainly sounds like Hitler all over again. This is why our schools don't want to teach the real history of our world to the kids anymore.

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On 11/5/08 at 12:19 PM, JWBooth wrote:         Repeated separate thumbs down will cause comment to be hidden

Trish Riley, pack your bags and head back to Danvers, where you came from!

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On 11/5/08 at 2:55 PM, kylie00 wrote:         Repeated separate thumbs down will cause comment to be hidden

well some got their way. Now that this is repealed why can`t I pick and choose which taxes I want to support. you repeal a 3 cent tax and then on the other hand pass a bond issue that will only help a few. somehow it just doesn`t make sense. I don`t have kids in school so why shopuld I have to pay taxes that support schools. Our roads are crumbling, except in southern maine, so why am I paying those taxes. All in all I shouldn`t have to pay any taxes

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On 11/5/08 at 4:34 PM, Govt2Big wrote:         Repeated separate thumbs down will cause comment to be hidden

This repeal was a great first step, but you know they're going to come after us with more new and/or higher taxes. What will be next?

Please save the following two important websites:

1. http://www.mainetaxpayers.com/

2. http://www.maineopengov.org/

Thank you all for voting YES on 1, but this battle against the "spend and tax" politicians is only just beginning. If you're fed up with our state's bad spending habits, please get active and/or support the above organizations. We need more help throughout the state.

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On 11/5/08 at 4:56 PM, Amanda1982 wrote:         Repeated separate thumbs down will cause comment to be hidden

I really dont think people understood the reasoning behind this. If people would think of others for once, rather than just themselves they would see that the health field is in a HUGE crisis...so when you are laying in a hospital bed and need help, and they tell you they cant help you cause they dont have the funding, then you will wish we passed that law...

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On 11/5/08 at 5:01 PM, Govt2Big wrote:         Repeated separate thumbs down will cause comment to be hidden

Amanda1982, you don't seem to understand what's happening right here before your eyes. The new beverage tax was but one example of how our pro-socialism state leaders were just attempting to suck "a few more cents" from Maine taxpayers.

For example, how many overpaid special assistants does our governor really need, even if we are heading toward pure socialism? All cuts should begin in his office for the following reasons:

2007 PAYROLL & BENEFITS COST ~NAME & JOB TITLE

$144,026 ~Lincoln, Jane ~Governor's Special Assistant

$138,808 ~Low, Ryan ~Governor's Special Assistant

$131,180 ~Walsh, Jude ~Governor's Special Assistant

$116,394 ~Riley, Patricia ~Governor's Special Assistant

$107,879 ~Cashman, John ~Governor's Special Assistant

$107,494 ~Mahoney, Michael ~Governor's Special Assistant

$103,784 ~Sklarz-Libby, Christina ~Governor's Special Assistant

$102,397 ~Plummer, Sue ~Governor's Special Assistant

$93,790 ~Smith, Rosemarie ~Governor's Special Assistant

$93,761 ~Ende, Patrick ~Governor's Special Assistant

$88,751 ~Gilbert, Mary ~Governor's Special Assistant

$85,286 ~Tilberg, Karin ~Governor's Special Assistant

$78,137 ~Cooney, Leighton ~Governor's Special Assistant

$73,595 ~Farmer, David ~Governor's Special Assistant

$73,045 ~Mullen, Lenore ~Governor's Special Assistant

$72,687 ~Boucher, Lance ~Governor's Special Assistant

$71,137 ~Black-Salomao, Karla ~Governor's Special Assistant

$70,337 ~Arata, Kelly ~Governor's Special Assistant

$69,948 ~Pelletier, Carrie ~Governor's Special Assistant

$69,774 ~Hopkins, Heather ~Governor's Special Assistant

$68,230 ~Saucier, Philip ~Governor's Special Assistant

$64,744 ~Waterbury, Jamie ~Governor's Special Assistant

$63,560 ~Leach, Joy ~Governor's Special Assistant

$58,770 ~Ringel, Marianne ~Governor's Special Assistant

$54,430 ~Cashman, Daniel ~Governor's Special Assistant

$50,384 ~Pratt, Victoria ~Governor's Special Assistant

$50,053 ~Renski, Henry ~Governor's Special Assistant

Remember, the median HOUSEHOLD income for Maine is just $42,801...versus those excessive PERSONAL figures. No games here, just a huge amount of inappropriate spending…and perhaps a few examples of Maine socialism?

Yes, we do have a major health insurance crisis, but we can solve that if we first modify our state's wasteful and selfish spending habits.

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On 11/5/08 at 8:16 PM, batwood wrote:         Repeated separate thumbs down will cause comment to be hidden

On 11/5/08 at 04:56 PM, Amanda1982 wrote:

I really dont think people understood the reasoning behind this. If people would think of others for once, rather than just themselves they would see that the health field is in a HUGE crisis...so when you are laying in a hospital bed and need help, and they tell you they cant help you cause they dont have the funding, then you will wish we passed that law...

Amanda those of us that are out busting our buts working and paying for insurance cant afford to help everyone. I pay over a third of my pay towards insurance and another third is taken out in taxes... How do you think most working people can afford to support everyone that doesnt work or cant work or just flat out chooses not to work? I know my family works darn hard for the money we bring in and there isnt much to spare if any. I am only speaking for myself but higher taxes isnt the answer to a failed program that hard working people cant afford to support. If I take what you said litterly your telling me to heck with my own family I should be working to support someone elses family. That just isnt going to happen.

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On 11/5/08 at 8:34 PM, GardenLady wrote:         Repeated separate thumbs down will cause comment to be hidden

Thank you Govt2Big. More of this kind of information in the Bangor Daily News is needed to educate the taxpayers of Maine. 27 Special Assistants??? Our Governor needs to pare down his staff! It is disgusting that one-half of the population of Maine is on some form of welfare. That medium income of $42,801, is it gross or net income? My husband and myself gross around $50,000, depending on how much overtime is thrown us, but we only have about $35,000.00 of that to spend on our 2 children left at home and our household bills after taxes, dues, insurance etc., that is taken out of our checks. With $35,000.00 we cannot afford to go to the dentist unless it is absolutely necessary. We cannot go out to eat very often. We cannot afford to shop for clothing unless we have worn a necessary piece of clothing out and it has to be replaced. We have managed to pay off credit cards so we do not have any of these to back us up. We take a vacation one week a year and that is at a campground, not a cruise, we cannot afford to fly. We do own a nice vehicle but we need transporation to work that is dependable. Our governor needs to live as we have to! He is out of touch and with the salaries of these 27 assistants, I would dare say that they are a bit out-of-touch with the population that is paying those salaries! Time to clean up Maine's government!!

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On 11/5/08 at 9:10 PM, thekingofmaine wrote:         Repeated separate thumbs down will cause comment to be hidden

how many special assistants do you need? IN MAINE? the bangor daily news is a liberal paper, they won't publish that

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On 11/5/08 at 10:38 PM, ryanrrobbins wrote:         Repeated separate thumbs down will cause comment to be hidden

"Shortly after midnight, No on One proponents in Portland celebrated their victory in getting Maine’s new tax on beverages repealed."

What was the reporter thinking, and where was the assignment editor and the copy desk? How do you mess up the lead like that?

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On 11/6/08 at 6:32 AM, gw2kpro wrote:         Repeated separate thumbs down will cause comment to be hidden

THis is a shot across the Baldacci administration's bow. Woking people can only afford to pay so much in taxes.

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On 11/6/08 at 10:29 AM, listenup wrote:         Repeated separate thumbs down will cause comment to be hidden

We just need a new govenor!

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On 11/7/08 at 4:26 PM, SusanLee wrote:         Repeated separate thumbs down will cause comment to be hidden

They were louder,” said Mark Brewer, a political science professor at the University of Maine,

UMMMMMM, I think we were not louder, but there were MORE of us!

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