High Taxes Hurt Maine Businesses

The news that Bumble Bee Foods will be leaving the old Stinson Factory near Gouldsboro is incredibly disappointing.  After more than 100 years of service, the owners of the old cannery announced they would be closing its doors for good in less than two months.  Bumble Bee says they were forced to shutter the plant amid concerns over federal limits on catching herring.  According to a spokesperson, the plant was no longer economically viable. 

There’s no doubt federal regulations are a chief concern, along with the down economy.  However, Maine’s punitive business climate also contributes to a company’s decision to stay or head for a more competitive business environment.  Maine lays one of the heaviest tax burdens in the country on employers and workers.  Complex and costly regulations take a bite out of every business dollar and sap precious resources that could go to help businesses grow.  The cost of health insurance is driving employers to other states with more competition amongst insurers.

The Governor has vowed to do everything possible to fill the commercial space and has suggested there are companies looking at the opportunity.  But if it’s tough just to keep the businesses we have in Maine, it’s even more difficult to attract new ones here.  Though our state government spends an average of $200,000,000 per year on economic development, we get very poor results.  Something else is going on.

To attract businesses and create jobs, we should first get our fiscal house in order.  That means making the tough choices to provide only the state services we can afford and then lowering taxes to encourage economic growth.  As long as spending remains out of control and taxes stay high, businesses will continue to move to more competitive states. 

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