Document Type

White Paper


University of Maine Bureau of Labor Education

Publication Date

Summer 2002

Publisher location

Orono, Maine

Abstract/ Summary

There is no shortage of analyses of the problems of Maine’s economy, or of proposed solutions. Once again, a number of recent reports have argued that Maine has a highly unfavorable business climate, characterized by excessive taxes and excessive regulation. These reports go on to argue that Maine must improve its business climate through such suggested changes as an overhaul of the tax system, elimination of property taxes on business equipment purchases, reducing the state’s regulatory burden, and reducing Maine’s supposedly high “tax burden.” Although the support for these proposals is framed as being “irrefutable,” in reality many of the analyses are based on questionable data and methodologies. Other data also cast doubt on the idea of a “crisis” in Maine’s business climate. And it seems reasonable to ask whether the proposed reforms would truly benefit the state as a whole, or whether they would primarily benefit a small number of large corporations which stand to gain disproportionately from these changes.


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