Maine
Maine fight over Whole Foods tax break creating unlikely alliances
AUGUSTA, Maine — A brand new assault on the grocery chain Complete Meals has united lawmakers who hardly ever agree and attracted a equally wide-ranging group of opponents, with some calling the concept an abuse of the tax code.
Complete Meals Market, the Amazon-owned firm with a single Maine retailer in Portland, has grow to be a goal of the state’s iconic lobster fishery and its supporters throughout the political spectrum because it stopped promoting Maine lobster in November, citing sustainability considerations.
In a Maine-flavored riff on punishments being tried by state-level politicians throughout the nation, a gaggle of influential lawmakers is attempting to repeal a tax break for Complete Meals. On the opposite facet, the Mills administration and tax watchers argue it will be arduous to manage or name it an inappropriate use of a tax coverage.
“Punitively taxing the enterprise gear of shops that decline to hold a specific merchandise is an abuse of the tax code,” stated Jared Walczak, a prime state tax professional on the center-right Tax Basis.
The measure would take away companies that cease promoting Maine merchandise based mostly on third-party certifications from a enterprise gear tax exemption. It will apply to Complete Meals because the firm cited two sustainability teams that pulled their endorsement of Maine lobster over considerations about threats to the endangered proper whale.
It’s led by Senate Minority Chief Trey Stewart, R-Presque Isle, whereas his co-sponsors embody his political rival, Senate President Troy Jackson, D-Allagash, who represents a neighboring Aroostook district. Home Minority Chief Billy Bob Faulkingham, R-Winter Harbor, who’s a lobsterman, additionally has touted the invoice amongst others aiming to assist the business.
At a information convention final week, Stewart derided Complete Meals as an “overpriced yuppie chain.” He framed the dispute as one largely about advertising in an interview, saying his concern was much less that the shops weren’t promoting lobster than the advertising side of the chain shopping for into the sustainability considerations.
Complete Meals cited a Seafood Watch record that roiled the business in September by recommending avoiding lobster over the fishery’s alleged impacts on endangered whales. The Maine Lobstermen’s Affiliation backs Stewart’s measure, with spokesperson Kevin Kelley saying certifications “ought to be based mostly on sound science.”
“There are forces at play which are actively attempting to offer our business and our state a black eye, and we’re not doing something about it,” Stewart stated.
Maine’s dispute with Seafood Watch coincided with proposed federal limits on lobstering to guard proper whales. The congressional delegation took warmth out of the problem by successful a six-year rule pause in December. Politicians and fishermen usually say the record and different considerations concerning the fishery relaxation on flawed science, noting there have been no whale entanglements linked to Maine gear since 2004.
Lawmakers are nonetheless lively on lobstering points, although. The tax break that Stewart is concentrating on has been declining in worth over the previous few years. In 2019, it was valued at roughly $58,000, whereas the Portland Press Herald reported it was all the way down to $38,000 or so final 12 months.
At a listening to final week, the governor’s administration opposed the measure, citing considerations about constitutionality and the way this system could be administered, whereas the retail and grocery industries cited fears it may punish shops if different merchandise lose certifications.
The measure will be tied to a rising populist effort round taxes. For instance, Republican Gov. Ron DeSantis of Florida obtained lawmakers to advance a measure this month giving him extra management over a authorities physique overseeing Disney’s particular tax standing after the corporate opposed his legislation limiting classroom instruction on sexual orientation and gender identification.
Stewart famous that the state has particular tax breaks for producers like Tub Iron Works and the Penobscot McCrum plant in Washburn, saying the federal government has an curiosity in selling industries. Jackson’s spokesperson likened it to his efforts to guard Maine loggers from Canadian competitors and urged prime Republicans to hitch him on that problem.
“Maine tax {dollars} ought to all the time be used to assist Maine companies that assist Maine staff,” Jackson stated.
However there may be opposition on precept throughout the spectrum as effectively.
Matthew Gagnon, the CEO of the conservative Maine Coverage Institute, used his Bangor Every day Information column to say that the invoice would inappropriately choose “winners and losers.” Rep. Joe Perry of Bangor, a prime Democrat on the tax committee, has lengthy puzzled if retailers ought to get the tax break, however stated this proposal isn’t “workable.”
“If the sponsor and the president of the Senate can work out a technique to make this work, they’re extra expert than I,” Perry stated.