So, I’m on vacation in lovely Maine. Each time we come here (and we’ve been coming for a bit), I constantly hear complaints about the overall tax burden of Mainers. And I have to say, I’m a bit perplexed.
The sales tax in Maine is 5%. The tax is a bit broad in that items like clothing and newspapers are taxed (they’re not in my home state of Pennsylvania) but still, 5%? I’m used to paying 7%.
Likewise, the tax on bars, restaurants and hotels (and other lodging like our cabin) is an amazingly low 7%. Yep, 7%. In most areas, liquor taxes and hotel taxes quickly hit 10% and climb close to 15%.
I’m not privy to real estate and income tax rates just now – but I am checking them out. I’ve got to find out what’s driving these Mainers crazy…
If you’re a reader and you’re from Maine, please chime in!
Must be getting better because in 2002 we were ranked number 1 in the nation paying taxes per capita and 2005 we were only the 13th worst State. That’s why I’ve sold and moved to another state!
Having lived in Maine for some time I can attest to the taxes there. For example, to register your car after already paying the sales tax, you also have to pay an excisse tax in addition the the registration fees. Now, keep in mind you pay the excise tax each and every year you re-register your vehicle. I used to pay about $180 per year to register my car there. Here in Florida, I pay $32. I think the difference is more than obvious.
I find that if I point out something that I believe my government is doing wrong, people very quickly tell me how much worse it is in other countries, as if I am lucky that I am only be oppressed a little as compared to how much other people are being oppressed. I know it is important to speak out against government action when it is only a small problem so that it won’t become a big problem.
I don’t know about Maine taxes because I have never lived there. Maybe the people of Maine are not seeing a benefit from their tax money, maybe they don’t agree with the uses to which their money is being put.
I am not opposed to a society as a group collecting taxes to benefit the group as a whole, but I complain about taxes also when I see my money being wasted or put into programs that I don’t want my government to be involved in. So maybe that is what the people of Maine are complaining about when they complain about taxes.
Rebecca,
I think your comment is hysterical.
“I don’t know about Maine taxes because I have never lived there. Maybe the people of Maine are not seeing a benefit from their tax money, maybe they don’t agree with the uses to which their money is being put.”
Maybe, Rebecca.
I’m not from Maine, never been to Maine. Once had a client in Portland, and a dear friend visits Biddeford each August. She’s there now in fact. Nope, don’t know much about Maine, but I do love your blog so I told my readers about it today. Enjoy your vacation!
They’ve got nothing else to complain about (except, perhaps the weather) so why not grumble about taxes? I’m in California and i’d welcome a broad 5% sales tax!
It seems that most are quick to grumble about taxes, but just as quick to forget about them at election time. Could it be because election time is usually the furthest point on the calendar from tax time and they keep sending the ones who could control spending but don’t back to office?
I will never understand the logic that if someone else is paying more in taxes than another, that the person paying less should be happy about how much they pay. If the person paying less is still paying too much, they still have the right to protest.(and wonder what the hell you are thinking)
If your neighbor is stealing from you but your friend’s neighbor is stealing more from your friend, you should be happy that your neighbor only steals a little from you.
As your tolerance for your neighbors theft increases, your neighbors see that they can steal even more from you because you never report it or complain.
After a while, your neighbor gets so confident about taking your stuff that they start to dictate what stuff you have, where you keep the stuff, and what is too much stuff. If you have too much stuff, they will have to take it away for the good of the neighborhood.
While all this was going on, Your friend moved to a place where their neighbors don’t try to steal all their stuff and then your friend’s old neighbors need you to support them too, because your friend is no longer available to steal from any more.
Your friend had it harder so you never complained and now, because you never complained, you are now having more stolen from you than your friend ever did.
Maybe then you will feel all right about complaining.
Well put, Chris!!!!!
Let’s see, now…In other words, now that your friend had enough and left, it’s time for you to step up to the plate and “PAY YOUR FAIR SHARE!”
I just love that phrase! Those that spout it haven’t a clue about what it means, but you have done an excellent job of illustrating how it works!
Chris, exactly! That is exactly what I was saying! If I speak out against what my government is doing, it seems that people stand in line to tell me not to complain because people in other countries have is much worse than me. What kind of logic is that?!!!! A few taxes now can mean a lot more taxes later.
WOW ! 5% is awesome. I live in NC and its around 7.5 %
In Washington, we have the nation’s highest gasoline taxes (adding insult to injury), and pay nearly 10% sales tax on everything except food. No matter what, though, I agree that we must complain about the idiots we keep putting into a position to take even more from us. What this country really needs is a viable Libertarian party to act as a source of sanity that might help reduce the impact of the lawmakers on our wallets.
Hi
Sorry, could not post a comment on your post relating to tax on cell phones. Out here, they call it fringe benefit tax and it is paid for by the employer.
If you want to go a bit crazy, read this:
http://www.brbraitt.bsnl.co.in/horizon/fbt.htm
Now you know where the IRS got this stupid idea from!!!
Best
Lubna
As for the rate of the sales taxes and the overall tax burden, I’m inclined to look at the relative “burden” to understand why someone is complaining. The Maine-iac who moved to FL is only paying $39 to register her car, but is also now paying between 6.5 and 8.5% in sales taxes on everything else. She alsopays higher home and auto insurance rates and property taxes. But she’s thrilled that she has no income tax to pay, as she (probably) sneaks back to Maine for summers and health care services.
As for the “my neighbor is stealing from me” analogy, I don’t think it’s appropriate. The neighbor doesn’t provide any services in exchange for the purloined property, or, CHris, the writer, neglected to mention or acknowledge them. If you really want to get out from an onerous tax burden, look at NH – the live cheap and die state.
Let’s compare Maine’s income tax rates to California’s and New York’s, two states widely believed to have perniciously high tax rates. Maine’s personal income tax rates range from 2% to 8.5% (the rate rises as taxable income rises). By contrast, California’s personal income tax ranges from 1% to 9.3%, and New York’s rate ranges from 4% to 6.85%. So it looks like Maine does indeed have one of the highest income tax rates in the US. Coupled with the sales tax and all the other miscellaneous taxes mentioned above, it’s no wonder that no one wants to live in Maine.
Being from away….having moved here years ago from the beautiful state of NH…when i moved up here we had an awesome govenor. At that time I had a lot more of my own wages. Since then what is at the heart of all this bs is this. We give more welfare to anyone than any other state. We are one of the few states with what i call free healthcare. If you have a pulse you get medicaid. You dont need to work, in fact we encourage you NOT to work. I have many many friends actually told this by DHS….what does that mean for the us poor working class folks? We pay for the free healthcare they recieve, and pay for our own healthcare through an actual insurance company deducted from our wages. For those people who deserve it, i absolutely dont mind paying, but for those lazy or no english speaking give me anything i can get for free…….enough is enough…..If i didnt own a home in a poor market, i would soooo be done with this sorry state. Our problem is our government, not those of us who work for a living to support everyone else. I think other countries would call it socialism…….our roads are bad because there is no money to fix them, it all went to healtcare, our lottery money supposed to go education, diverted to healthcare. And now my friends comes the “soda” tax. Snack tax and soda tax. Why dont we just make it an “all” tax and get it over with. Oh yes, we cant do that. If we did, those with “free” services would actually have to pay some of their own burden and we wouldnt want that….
Having been on both sides of the equation, I’ve decided that taxation is such a relative issue. As you look at the tax burden in each state, you can almost see the revenue sources. High income taxes – low property tax burden (Maine). Low income taxes – high property tax burden (Florida). In between are CA and NY as exceptions to the theory. Every imaginable interest group has a lobbyist prowling the halls of your state legislature trying to get a bigger slice of the pie for their group. The pie is only so big, and for all these groups to get what they want, the legislators have to make the pie bigger. The problem is that the interest groups also vote and they only see their one issue – and they make themselves heard!! Teachers, cops, firemen, public works get their raises every year – regardless!! You and I are in the office all day and don’t have an opportunity to argue against more taxes – our representatives forget who they “represent” and so the cycle perpetuates itself. It might be time for another revolution “… it is their right, it is their duty, to throw off such government and to provide new guards for their future security…”
I’m here for a weekend in Maine unexpectedly. I want to do some shopping while I have the time and there are a number of great stores, but unfortunately, I just learned about the clothing tax. A real bummer because I finally have a little time to relax and shop. If I can find an awesome deal, they’ll get my business, but my home state of NH doesn’t have sales tax, so I’ll probably just wait til I’m home. NH has it’s own form of business tax anyway, so maybe it all comes out in the wash.