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The latest edition of our Impact newsletter is now available!
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Weekly edition of IMPACT, a publication of the Maine State Chamber | March 24, 2023
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The Advocacy Team joins co-hosts Julia Munsey and John Williams on the Chamber's podcast -- The Bottom Line This week on The Bottom Line podcast, co-hosts Julia Munsey of the Maine State Chamber of Commerce and John Williams of Williams Broadcasting discuss the latest news on the legislative session. The Chamber's Advocacy Team -- Linda Caprara, Ben Lucas, Simon West, and Peter Gore -- join Julia and John to talk about their areas of focus in the 131st Legislature. If you missed the March 22, 2023 broadcast, please click/tap the replay button here: |
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Maine State Chamber of Commerce Editors note: The following is the testimony offered by Linda Caprara before the Taxation Committee on March 23, 2023. For more information, please contact Linda Caprara at lcaprara@mainechamber.org. Good afternoon, Sen. Grohoski, Rep. Perry, members of the Joint Standing Committee on Taxation. My name is Linda Caprara, I am the Vice President of Advocacy for the Maine State Chamber of Commerce. I am also a resident of Winthrop. We are testifying in opposition to both L.D. 667, "An Act to Impose a Tax Surcharge on Certain Incomes" and L.D. 843, "An Act to Improve Income Tax Progressivity by Establishing a New Top Individual Income Tax Rate." We strongly oppose both L.D.'s 667 and 843. Both bills threaten to stifle Maine's economy. One bill would impose surcharges on high earners and the other increases the top individual income tax rate and would make Maine the second-highest income tax rate in the nation. Nonetheless, both bills will serve to penalize the success of individuals and small businesses across the state. Increasing income taxes will impact jobs, investments, and will ultimately shrink, not grow Maine's economy. In addition to impacting high earners who are successful at their jobs, these proposals would no doubt hurt small businesses. In Maine, over 80% of businesses are established as LLC's, partnership,s or S-Corps. In those instances, the income from the business flows through to the individual taxpayer (s), thus he or she is responsible for paying the income tax directly. So, income taxes, and the amount of income taxes paid are very important to the majority of businesses, especially small businesses, in Maine. Paying higher taxes would impact the amount a business owner chooses to reinvest in their business in terms of capital and personnel. Failure to reinvest can have a direct impact on growing the economy and job creation. Over the years, reducing individual income taxes has been one of the top priorities for Maine's business community. The Legislature has largely agreed, making significant strides over the years to reduce personal income taxes across the board for Maine people. Back in 2011, the Legislature lowered income tax rates, resulting in the elimination of income tax liability for approximately 70,000 Maine taxpayers. In fact, middle and low-income Mainers benefitted significantly from this change. The proposal included a reduction in the top marginal income tax rate from 8.5% to 7.95%. Then again in 2015, the Legislature enacted legislation to further lower income tax rates including lowering that top rate yet again to 7.15% where it remains today. High personal income taxes have also always had an impact on businesses' ability to recruit skilled workers from all over the country and the world. Businesses tell us time and time again that high-income taxes are a consideration in the relocation of any new employee, and why wouldn't they be? We often hear that executives and business owners make decisions to locate in a particular state based in part on their own income tax liability, and often avoid locating their business to states that have high-income taxes. In looking around the country, people are clearly taking note of how states handle personal income taxes. It appears, every day there are articles about how there is an outflow migration of folks from states with high tax burdens to states that are tax friendly. According to the National Taxpayers Union Foundation, new data from the Internal Revenue Service shows the highest outflow migration of folks are leaving high-tax states like New York, California (top rates 10.9% and 13.3% respectively and the highest inflow migration of folks to states like Texas and Florida where there are no income taxes. Does this outward and inward migration have everything to do with income tax rates? Maybe not, but the coincidence is hard to ignore. During the global pandemic the traditional workplace shifted to remote work. Even after the pandemic many folks still work from home. The pandemic has forever changed the way people think about where they live, and where they can work. They don't have to live in high taxed states. We should be doing all we can to make sure we keep taxpayers here and not encourage them to flee to lower-tax states. Keep Maine competitive, please vote ought not to pass on L.D. 667 and L.D. 843. ### |
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Maine State Chamber of Commerce Editors note: The following is the testimony offered by Simon West before the Education and
Testimony of Simon West for The Maine State Chamber of Commerce In Support of LD 1020 Resolve, Directing the Department of Education to Update Course Requirements for Certification of Industrial Arts Teachers and to Finally Adopt Major Substantive Rules
Chairs Rafferty and Brennan, and esteemed members of the Education and Cultural Affairs Committee, my name is Simon West. I reside in Gardiner and I represent the Maine State Chamber of Commerce, a statewide business association made up of both large and small businesses, here to provide you with my testimony in support of aligning the technical requirements for certification of K -12 Industrial Arts with course offerings of the University of Maine System.
The Maine State Chamber supports this legislation as a way to ease workforce shortages and help align student learning with the required knowledge, skills, and abilities to be successful in today’s workforce. Our current workforce shortages can not be tracked to a single source but it is in our best interest to ensure that we do everything we can to reduce instances of structural unemployment. As a member of MaineSpark, the Maine State Chamber supports policies and initiatives that help Maine people earn a certificate of value. Our goal is to ensure that 60% of Maine people hold some form of a certificate of value by 2025. Obtaining this 60% objective reduces the likelihood that our workforce age population lacks the adequate skills to be successful in today’s economy. LD1020 supports MaineSpark’s goals.
Early in 2022, I participated in a Career & Technical Education stakeholder group that was asked to uncover systemic barriers to attendance and growth in Maine’s CTE offerings. Among the barriers uncovered, staffing shortages were high on the list. Whether in the K – 12 school setting or at CTE centers, it is important to adequately staff schools so that students interested in technical, engineering, and technology courses can find a seat in the class. Aligning certification for K – 12 Industrial Arts teachers with the technical requirements for certification through course offerings at the University of Maine System is a sensible approach. This alignment will clarify certification requirements and ensure teachers have had adequate training through the University of Maine System.
The bill also states that an engineer licensed under Maine Revised Statutes, Title, 32, Chapter 19 or with comparable licensure from another jurisdiction would be eligible for certification as a K -12 Industrial Arts, engineering, or technology teacher. This portion of the bill does not waiver or stance of support, but we offer the suggestion that licensed technical professionals have some instruction on classroom management before they are fully certified. We want to increase our teaching workforce without diluting its quality or ability to administer learning. As with the technical side, classroom management could be aligned with courses at the University of Maine System. I hope you give LD1020 your support and give some consideration to our suggestion.
Thank you for the opportunity to provide you with our testimony.
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The Maine State Chamber Fights for In recent weeks, Simon West testified on two bills that aim to expand Career and Technical Education enrollment. The Chamber supported each piece of legislation and asked the committees to consider how the legislation helps to eliminate barriers to critical economic growth. LD 436, “An Act to Provide Career and Technical Education Students with Credit Toward High School Graduation for Work Completed in Career and Technical Education Centers and Regions”, Sponsored by Rep. Woodsome of Waterboro, gives high school students an opportunity to attend Career and Technical Education without the concern that they may have to forgo completing their CTE to graduate. Simon said in committee, “When students must choose between graduating from high school and completing their CTE program it is an injustice to the student, the program, and Maine’s economy. It is in everyone’s best interest that school units and CTE centers work together to create equivalency across education requirements whenever possible. The Westbrook Regional Vocational Center has shown the validity of this measure by giving students the opportunity to show how their work in a vocational program meets core graduation requirements. Through the maintenance of portfolios students can demonstrate their ability to meet district graduation standards and career readiness.” LD 617, “An Act to Foster Career and Technical Education in Maine Schools by Creating an Additional Pathway to Certify Industrial Arts Teachers”, Sponsored by Rep. Carlow of Buxton would make it easier for current educators to gain the technical skills necessary to teach Industrial Arts. Current educators could become certified through the following means: A. A completed apprenticeship registered with a statewide or national apprenticeship and training organization. B. A completed 2-year degree or certificate from a technical institution accredited by a national association of career and technical schools or similar organizations. C. Completion of a minimum number of hours of paid applied employment or teaching in the area for which the endorsement is sought. D. Completion of a minimum number of hours of experience learning the trade or craft in the area for which the endorsement is sought. There is often a concern that professionals with an abundance of technical skills may not be well-equipped to manage a classroom. Simon stated to the committee, “This bill not only helps to ease staffing shortages at CTE centers, but it also helps eliminate concerns around whether a person with technical knowledge can be a successful educator. As an endorsement on an existing teaching certificate, we can be assured that the individual obtaining the endorsement has already proven their competency as an educator.” As a representative of the State Chamber, Simon was part of a stakeholder group commission to uncover systemic barriers to CTE enrollment and completion. A teaching shortage and lack in equivalency between CTE learning and graduation requirements were both at the top of the list reported out from the group. We are pleased to see this type of legislation before the Education and Cultural Affairs Committee. For more information, please contact Simon West at swest@mainechamber.org. ### |
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Weekly Active Bill Report Members of the Maine State Chamber of Commerce's Advocacy Team were engaged with the following 46 bills this week. Click or tap here for the FULL REPORT (PDF format). Education
Health Care
Judiciary
Taxation
Workforce Development
Click or tap here for the FULL REPORT (PDF format) ### |
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