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Janet Mills may get Democratic pushback on proposed cigarette tax hike

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Janet Mills may get Democratic pushback on proposed cigarette tax hike


Gov. Janet Mills unveiled a tobacco tax hike Friday in her two-year budget plan that serves as the final one of her tenure, and she opens with work to do to win over fellow Democrats who may not all rally behind that major change.

Mills and her office said the $1 per pack increase to Maine’s $2 cigarette tax, alongside a commensurate increase to the excise tax on other tobacco products, will generate about $80 million over two years. Those changes plus cuts to food assistance, health and child care programs, will help close a projected $450 million spending gap.

The governor noted Maine last raised its cigarette excise tax from $1 to $2 in 2005, while every other New England state raised theirs since 2013. She highlighted public health angles, such as how more than a third of annual cancer deaths in Maine are attributable to smoking. Maine’s smoking rate of 15 percent is above the national average of 12.9 percent.

Getting enough support from her party’s lawmakers who saw their majorities narrow in the November elections could prove difficult, particularly given several rural Democrats have banded with Republicans to block past attempts at flavored tobacco bans.

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Democrats have only a narrow 75-73 advantage in the House and a 20-15 edge in the Senate. Some of their members from rural districts may oppose it for reasons of personal freedom, while progressives have often disliked these tax hikes because they hit poor residents the hardest.

“I’m not really a fan of disproportionate taxes,” freshman Rep. Cassie Julia, D-Waterville, said Friday. “But I’m also a money person and a numbers person.”

Julia noted the governor focused on public health benefits in pitching the cigarette tax hike, such as how Medicaid-related smoking expenditures cost Maine taxpayers $281 million annually. Julia said savings in smoking-related health care costs “can go far in other places.”

Another freshman Democrat, Rep. Marshall Archer of Saco, said earlier Friday he wanted to understand “the why” behind the cigarette tax increase before deciding whether to support it, mentioning concern for “marginalized populations.”

“If it’s a tool to help reduce the budget [gap], I’m not a big fan of that,” Archer said.

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Democratic leaders put out neutral statements Friday afternoon that said they looked forward to digging into the budget details and hearing the public on the plan. They did not mention the proposed cigarette and tobacco-related tax hikes, but House Minority Leader Billy Bob Faulkingham, R-Winter Harbor, said he heard not all Democrats are fans of the plan.

Republicans signaled opposition to any tax increases, noting the governor is also proposing tax increases on marijuana and streaming services such as Netflix and Spotify. Sen. Jeff Timberlake, R-Turner, said he is a former smoker but opposes a higher “sin tax.”

“I think it should be spread out amongst all Mainers, not just those who choose to smoke,” Timberlake said.

Mills emphasized Friday her budget rejects “broad-based tax changes,” such as income and sales tax hikes, while also not drawing from a “rainy day fund” that was essentially maxed out last year at roughly $968 million.

New Hampshire taxes a pack of 20 cigarettes at $1.78, which could lead to Mainers flocking across the border if the higher tax takes effect, said Curtis Picard, CEO of the Retail Association of Maine. That could lead to less revenue than projected for Maine.

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“Consumers are pretty aware of what things cost these days,” Picard said.

The leader of the Campaign for Tobacco-Free Kids, a national nonprofit that supports a flavored tobacco ban in Maine, lauded Mills’ plan Friday by saying it will save lives and money. Still, plenty of lobbying and spending from tobacco interests have swayed past Maine proposals.

“The evidence is clear that increasing the price of cigarettes and other tobacco products is one of the most effective ways to reduce tobacco use, especially among kids,” Yolonda C. Richardson, the campaign’s CEO, said.

Interest groups on opposite sides of the political spectrum were also not rallying behind the tax changes. The conservative Maine Policy Institute called it another example of Mills breaking her 2022 campaign promise to not raise taxes.

The liberal Maine Center for Economic Policy criticized the cuts or lack of additional investments in various health care and child care programs that Mills said would help close the funding gap. James Myall, the center’s economic policy analyst, said they “have some reservations about it.”

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Asked if she thinks the tax increases have enough support to pass, Mills said Friday she was “not going to handicap it at this moment.”

“Nobody’s taken a vote on anything,” she added.



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Maine

Hundreds of students attend Maine Learning Technology Initiative Student Conference

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Hundreds of students attend Maine Learning Technology Initiative Student Conference


ORONO, Maine (WABI) – Hundreds of school students from across the state attended the annual Maine Learning Technology Initiative Student Conference in Orono Thursday.

The event was hosted on the University of Maine campus by the Maine Department of Education.

It focused on educating students in a fun way on topics such as robotics, AI, and cyber security.

Those from the department say it’s important to stay up to date on teaching kids about those emerging fields.

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“When technology comes on the scene, it tends to stick around. So, we try to do our best to prepare students not only for what’s here right now, but also what they are gonna see in five years from now and how can we lay the foundational principles for them so that they can be successful no matter what the next technology advancement is,” said Emma Banks, event coordinator, Maine Department of Education.

“They kind of just make it more entertaining for the kids so we’re not just sitting in a college class. We’re actually doing fun entertaining hands-on work,” said Zoie Elliott from Windsor Elementary School and presented at the event.

Activities ranged from an AI training camp to a Lego robotics session.



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Letter: Why a millionaire tax doesn't make sense for Maine

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Letter: Why a millionaire tax doesn't make sense for Maine


Letters submitted by BDN readers are verified by BDN Opinion Page staff. Send your letters to letters@bangordailynews.com

Millionaires and the top 10 percent of Americans pay more than 70 percent of federal income taxes and the percentages are likely similar in Maine, which leads some to claim that millionaires aren’t paying their fair share.

I think this high tax burden, along with Maine’s other taxes, may lead many to move to Florida or other states that have no income tax and no estate tax, hurting Maine’s economy. Further, when they shelter their income, that money is unavailable to invest in opportunities to stimulate our economy, decreasing the tax money available to our government.

We forget that our poor, while needing our help, generally live better than kings in the 18th and 19th century. Be careful what you wish for.

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John S. Kaiser

Ellsworth



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This Democrat is at the center of Maine’s debate over transgender athletes

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This Democrat is at the center of Maine’s debate over transgender athletes


Politics
Our political journalists are based in the Maine State House and have deep source networks across the partisan spectrum in communities all over the state. Their coverage aims to cut through major debates and probe how officials make decisions. Read more Politics coverage here.

A slate of Republican-led bills aimed at undoing Maine’s policies allowing transgender girls to play in sports aligned with their gender identity are heading for votes after the Legislature’s Judiciary Committee effectively deadlocked on three of them late Tuesday.

The key player was first-term Rep. Dani O’Halloran, D-Brewer, who voted with Republicans on two bills that would bar schools that receive state funding from allowing transgender girls to play alongside girls. She also endorsed a version of a similar bill from Rep. Liz Caruso, R-Caratunk, that would take out language allowing people to sue schools for violations.

Democrats who control Augusta otherwise united on the issue that has led to Gov. Janet Mills’ fight with President Donald Trump over Maine’s federal funding. These Republican-led bills still have an uphill path to passage in the Legislature, but O’Halloran’s stance has injected uncertainty around how the votes will land in the closely divided House.

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Mills has defended Maine’s laws on the subject but has not said how she feels about changing the policies, saying in March that it was “worthy of a debate.” A University of New Hampshire poll of Maine that month found two-thirds of Mainers think transgender athletes should not be allowed to compete in women’s and girls’ sports.

It’s no surprise that O’Halloran was the one to break with her party. She was one of two Democrats to vote with Republicans in April against enshrining existing civil rights protections — including those for gender identity — in the Maine Constitution.

She was one of the most vocal members during Tuesday’s committee session, questioning Mary Bonauto, a prominent LGBTQ+ rights lawyer from Portland, about whether transgender participation in girls sports erodes opportunities for those who were born girls. The lawmaker returned to that point before the committee started taking votes.

“You have not only transgender girls on girls teams, you have girls on girls teams, and then there are some transgender boys that are playing on girls teams,” she said. “So that leaves me sitting here wondering, where does that leave girls?”

Other Democrats stuck together in voting against the bills. Sen. Rachel Talbot Ross, D-Portland, worried about the real-world effects of Caruso’s bill that would bar transgender girls from girls sports but allow schools to create co-ed teams to accommodate those students.

“If the school does not have the resources or can’t put a regional team together, then we have de facto just discriminated against those students because we have not given them choice — choices,” she said.

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Rep. Rachel Henderson of Rumford, summed up the Republican perspective on the committee, saying her faith teaches her to love everyone but that it is “hard science” that there are only two biological sexes. (The American Medical Association recognizes a “medical spectrum” of gender.)

“With that love has to come a truth, and this is the truth I’m standing on,” she said. “But please know that my desire is to always wrap that truth in love.”



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