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By Ben Lucas 21 Jul, 2021
Letter #1 Governor Janet Mills 1 State House Station Augusta, Maine 04333 RE: LD 553 Dear Governor Mills, Surely, you must agree that the passage of LD 553 would create a mountain of problems where only a few now exist. This legislation would only benefit the litigation attorneys and further widen the perceived mistrust between employees and employers. This is exactly the kind of legislation that undermines cooperation in the workplace and causes investors to look elsewhere to establish employment opportunities. It is known by all how difficult it is to attract and retain employees these days. My company, The Sheridan Corporation, currently employs about 100 people. We have successfully been doing business in Maine since 1947. We have invested heavily in efforts to recruit, train, and provide career opportunities for our employees. Like most employers, we recognize that retaining employees is critical to our companies’ lives and success. LD 553 implies that employers look upon their employees like Ebenezer Scrooge looked upon Bob Cratchit…we are no longer in the 19th Century and this LD 553 only creates a costly system that is retro to today’s society. LD 553 benefits only the litigation attorney brotherhood. Further, it is legislation like this that reinforces the conspiracists who would point to such laws as evidence that democracy is being tossed aside and our nation is becoming a socialist/communist country. Small businesses make up the majority of businesses in Maine and the Nation. Employers in small businesses are usually also the investors in the businesses. LD 553 would add the potential cost of legal fees for the small business investor and remove the ability of an employer to effectively manage his or her company. There is no reason for LD 553 to become a law in Maine. Please do not support this terrible piece of legislation. Respectfully, Mitchell P. Sammons President Letter #2 Governor Janet Mills 1 State House Station Augusta, ME 04333 Re: Opposition to LD 553, “An Act to End At-will Employment” Dear Governor Mills: I’m writing today to express my opposition of LD 553 has proposed by the Maine Legislature. Lucas Tree Experts, a Maine based corporation, has been in existence for 95 years providing vegetation management services to electric utilities owned by investors, cooperatives, and governments in ten U.S. states and four Canadian provinces. We have celebrated our longevity because of our employees, our sense of family culture and our commitment to the safety of all our team members while being nimble and adapting to changing economic conditions. The employee and employer relationship are built on a system of symmetry and competition. Employees will flock to businesses that provide merit advancement based on skills, licenses and/or certifications, a career path that rewards hard work and not entitlement, a corporate culture that changes with individual perspectives and a business that provides job security. Employees can quit poor run companies, request hire pay based on skills and not tenure, and demand change and adaption to cultural norms. Why should businesses (who are a just many employees acting together) not have the ability to adjust their workforce size based on economic conditions, seasonal demand, acts of god, or poor work ethics by individuals? Lucas Tree Experts, like many organizations, already has a progressive discipline policy, but we also have zero tolerance for failure to follow safety standards that may put the employee or their colleagues at risk. LD 553 assumes that all employees are a good cultural fit with the business, believe in the mission statement, adhere to the training provided, and respect their fellow colleagues when the reality is some individual’s attitudes or work habits are not aligned with the rest of the organization. At-will employment allows employees to choose their career paths by creating competition by businesses to offer competitive wages and benefits to attract and retain the best employees. LD 553 solves none of this. It is clearly written by lawyers for lawyers continuing the trend of an adversarial employee and employer relationship built on litigation. This bill will increase the cost of doing business in Maine, impact capital investment by entrepreneurs, an continue the trend of Maine being a high-cost business environment, out of touch with today’s changing business climate. Individual bills, like LD 553, continue to be the root cause of Maine’s inability to create a long term comprehensive strategic plan to grow our economy. It is time, as Governor you propose limiting the number of bills being introduced by the Maine Legislature so only the best non- partisan ideas are being debated and implemented. I would welcome the opportunity to discuss further. Respectfully, Arthur Batson III Chief Financial Officer Letter #3 Governor Janet Mills 1 State House Station Augusta, ME 04333 Dear Governor Mills: My name is Mark Bancroft. I am a lifelong Maine resident and the President and Owner of Bancroft Contracting Corporation. I write to you now in opposition to LD 553, An Act to End At-Will Employment. Bancroft Contracting Corporation is a 2nd generation owned and operating self-performing general contracting company headquartered in South Paris. My father, Al Bancroft, founded Bancroft Contracting in 1977, and I continued in his legacy by purchasing the company in 2004. Today Bancroft Contracting Corporation provides a comprehensive range of construction and industrial maintenance services to a variety of private markets, including the pulp and paper industry, manufacturers, power generating companies, and other industrial and commercial customers within Maine and across New England. On average we employ 180 construction professionals, approximately 175 of which are Maine residents. Our workforce consists of experienced craftspersons who choose to work in a merit shop environment. Despite the diversity of our markets and the flexibility of our workforce, private construction in New England remains seasonal, schedules are project dependent, and even then jobs can be temporarily halted by virtue of uncontrolled events such as permitting delays, financing issues, or a myriad of other, similar causes. All of our employees understand the nature of their chosen profession. The majority of our most senior and skilled craftsmen and women began in entry-level positions in full understanding of the seasonal nature of their employment. Each has earned the right to work through commitment, hard work, and training. For some ending at-will employment would reduce the incentive to commit to personal improvement, to train and develop one’s skills to avoid layoff. At the company level it would cause us to move slowly through hiring decisions, possibly limiting but certainly delaying the availability of construction positions, as our ability to manage through improper fit, natural seasonality, and work slowdowns would directly undercut our ability to compete with our out-of-state competitors. Moreover, LD 553 does not make clear what options are available to employers when work is temporarily halted. Is the employer then forced to stumble through a 3-step progressive disciplinary process prior to a short-term layoff? There is no doubt that this would encourage witch-hunts and discourage employer-employee relations. Similarly, much of our business is derived from our customer’s capital investments. As it stands, Maine already lags behind New Hampshire and our other New England neighbors in annual private sector capital investment. The country is in the eleventh hour in battling a pandemic that has crippled economies. In Maine, key employers in manufacturing and pulp and paper are continuing their steady decline in investment and employment figures. Now is not the time to radically upend the employment model that Maine and 48 other states have utilized. The move to end at-will employment will push capital investment and growth elsewhere. Our customers are already transitioning resources to more business friendly states. LD 553, should it come to pass, will certainly compel companies to stymie hiring possibilities, but more likely and more tragically it will represent for many the final straw that sees them relocate operations out of state. In the end, the negative impacts of lost capital investment will be felt by all Mainers, but as is always the case it will be experienced most acutely by those working men and women who are now without good jobs or competitive prospects. I encourage the Governor’s Office to take a fresh look at job creation in this state by working with the legislature to investigate how we can better educate, train, attract and retain the modern workforce, as well as reassessing how the combination of infrastructure improvements, streamlined regulations, and a simplified tax code can collectively provide Maine with a systematic competitive edge. That is Maine’s path to sustainable economic growth. We cannot allow ourselves to get lost in a quagmire pursuing legislative bogeymen where none exist or to leadenly reject an employment model which is not at fault or at issue. I urge you to resist the misguided call to end at-will employment and reject LD 553. 
Sincerely yours, Mark Bancroft, President and Owner Bancroft Contracting Corporation Letter #4 OPPOSITION to LO 553, "An Act to end at-will employment'' Dear Governor Mills, My name is Timothy Hebert, I live in Yarmouth and grew up in Lewiston. I own two major Maine based companies; Hebert Construction and STARC Systems. Hebert Construction is a 4th generation family owned and operated business employing SO people and STRAC Systems is an innovative manufacturing company of modular telescopic wall systems for healthcare construction containment sold around the world, STARC employs 80+ people and growing, 72 of our employees are Maine residents. Nothing in life worth striving for comes easy, you must work for it. That is what my father and grandfather taught me, it is also what I am teaching my two sons. Maine has been a special place for my family over many generations and we are proud to continue to grow our companies here. LD 553 will change our core values and influence where my companies stake our flag. Construction and manufacturing require innovation to remain on top and hard-working dedicated people who care about the products they are producing. Maine employees have traditionally been all about hard work and dedication to a common goal. My companies strive to provide competitive benefits and strong wages that are reviewed each and every year. We employ, in some cases, multiple members of a family and we think of our employees as an extension of our family. If our companies cannot compete with out-of-state firms due to the economic pressures within the State of Maine, we will be forced to shut our doors or relocate to survive. At Hebert Construction, we are actively trying to hire people in every division of the company, from laborers, carpenter and supervisors to operations manager and estimators. Passing a bill like LD 553 would force our company to pump the brakes on hiring and try to weather the influx of work so as to keep employment low to survive the downturn when it hits us. We pride ourselves as employers of keeping everyone employed during good and bad times. We think of our employees as an extension of our family and ensure they and their families are taken care of especially in tough times. Imposing an increase cost on our business would not create any jobs it would in fact reduce the motivation to hire and train our workforce. Foundational jobs are the lifeblood of our economy. I encourage our law makers to take a more comprehensive look at how taxes and regulations impact our ability to compete. Maine needs to develop a long-term strategic plan that encourages employers to hire and train our workforce. In order to provide higher paying jobs the people applying for those jobs require skill, dedication and an aptitude for continued growth. A Bill like LD 553 discourages job growth and has the potential to cripple current businesses as well as restrict new business development, innovation and growth.
By Ben Lucas 13 Jul, 2021
Governor Janet T. Mills 1 State House Station Augusta, ME 04333 RE: Please veto LD 1711: “An Act To Enhance Enforcement of Employment Laws” Dear Governor Mills, The Maine Jobs Council is a new, statewide, nonpartisan, member-driven advocacy organization that advances public policies to support the creation and preservation of foundational jobs in Maine. We are writing to ask you to please veto LD 1711. We oppose LD 1711 because it is antithetical to our mission advocating for economic prosperity by promoting the growth and maintenance of foundational jobs. If passed, LD 1711 would have a negative impact on attracting and keeping foundational jobs in Maine. There are already numerous policies dealing with the enforcement of employment laws. Employers already work with the employees to navigate the laws to make sure they are followed. This legislation would make Maine less competitive, not more, by creating an atmosphere of litigation and distrust between employees and employers. This proposal would add another layer of burdensome regulation on Maine's job market. It is based on the faulty premise that Maine employers do not generally comply with employment laws. LD 1711 will worsen conditions and further exacerbate Maines already low business rating by saddling it with an incredibly burdensome labor provision that other states don’t have. Nationally, Maine ranks #46 for business environment and #36 for economic strength, both of which are the lowest in the northeast. In 2020, Maine ranked #45 in America for Venture Capital Investment. New Hampshire saw nearly 3x the investment. Adding more regulations and burdens on Maine’s job market at a time when it is already struggling will not help Maine's economy. Instead, we should be addressing legislation that will help address the pending workforce crisis in our state. Over the next 5 years, Maine’s retiring workforce will leave 158,000 open jobs. Employers and managers desperately need workers and in order for our state's economy and tax base to grow, we should be passing legislation that fits into your 10 Year Economic Plan to add 75,000 people to Maine's talent pool. This legislation would not do that. The MJC supports making workers a top priority. The best way to do that is with a robust economy full of quality jobs that provide choices, career growth, and increasing wages. This law would lead to just the reverse. Supporting working people is critical, but the important word is working. If our companies cannot compete, if money isn’t invested here, if jobs stagnate or leave, then we’ll have more and more people who are not working. There is no substitute for a good job and those jobs come from companies that compete successfully to provide goods and services. In fact, if we are going to truly improve the lives of Maine’s working men and women, we need to help our companies be more competitive, not less. Individual pieces of legislation like this one are not the solution to solving our state's economic problems. Nationally, Maine has the 6th highest energy cost, the 4th highest healthcare cost, the 4th highest tax burden, and our weekly wage is $966, tied with Wyoming for 11th lowest. We encourage state government to take a more comprehensive look at how taxes, regulations, infrastructure, workforce challenges, and other issues act as barriers to job creation. Maine needs to develop and follow a long term strategic plan that makes us more competitive. Sincerely, Ben Lucas Executive Director, Maine Jobs Council MAINE JOBS COUNCIL BOARD OF DIRECTORS: Joel Allumbaugh, The Allumbaugh Agency Mitch DeBlois, DeBlois Electric Joe Edwards, Alliance for Maine Tim Hebert, Hebert Construction Marc Lacasse, Augusta Fuel Company Jim Lynch, Maine Commercial Tire Amos McCannell, HO Bouchard Andy Nichols, Elmet Technologies Brian Parke, Maine Motor Transport Association Brian Souers, Treeline
By Ben Lucas 28 May, 2021
Last Friday evening, with little debate or time to review significant amendments, the Committee on Labor and Housing moved LD 1564 – a proposal to reform Maine’s unemployment insurance system – to the floor of both houses with a recommendation of “ought to pass as amended.” This proposal significantly increases UI benefits, expands eligibility, broadens powers of the Labor Commissioner and adds system features that – while arguably worthy of consideration – are unproven, at best, and appear unrelated to the system failures of 2020. MJC supports reforms to Maine’s unemployment insurance system to fix the failures highlighted at the height of the pandemic. But we have significant concerns about the substance of LD 1564 and the process that has brought it to Maine lawmakers for a vote in the coming weeks. Unfortunately, the end-of-session scramble on LD 1564 seems “pre-ordained” to pass and be signed by Governor Mills, but we will continue to voice the following concerns to lawmakers, the employer community and the general public. At a time when there is broad agreement that the unemployment insurance system needs reform and there is a willingness to work together, lawmakers have limited debate and cut out stakeholder input. The legislative majority is opting to ram through a measure at the last minute with almost no debate or time for substantive review. The employers who rely on the system and provide 100% of the funding (estimated at more than $134 million annually) have not been allowed to provide substantive input into the changes needed to improve system performance. The costs of increased benefits and expanded eligibility for workers are unknown and the bill includes no funding plan – which means the added costs will probably fall on Maine employers. In fact, cost analyses and working group processes are called for in the bill, but only after the bill is enacted. A working group would be tasked to look at problem areas, such as access to benefits, employer reporting requirements, and software/technology issues causing delays. Its report would not be due until next January. This approach is tantamount to, “Fire. Aim. Ready.” LD 1564 is not an overhaul of a broken UI system that failed both workers and employers last year. There is no comprehensive vision of how this system could and should operate. There is no plan to enhance the user experience of workers and employers. There is no plan for how to operate more efficiently and minimize the burden on employers. It is a benefit increase and expansion, plain and simple, that provides broad new powers to the Labor Commissioner. MJC will continue to oppose this measure. However, the version unveiled Friday evening is the product of negotiation between the House Speaker and Governor Mills’ Administration, indicating that it is likely to become law. If it does, MJC will remain engaged to ensure the working group produces substantive recommendations. At the same time, MJC will continue to advocate for the growth of foundational jobs for Maine. We support taking care of Maine workers and residents who need help. But our workers – and our state – will be far better off if we focus more on building a better “employment system.” Sincerely, Ben Lucas Executive Director Maine Jobs Council
By Ben Lucas 27 May, 2021
Senator Hickman, Representative Sylvester, and members of the Committee on Labor and Housing, my name is Ben Lucas, I live in Portland, and I serve as the Executive Director of the Maine Jobs Council. The Maine Jobs Council is a new, statewide, nonpartisan, member-driven advocacy organization that advances public policies to support the creation and preservation of foundational jobs in Maine. I am here today to testify in opposition of LD 1711. We oppose LD 1711 because it is antithetical to our mission advocating for economic prosperity by promoting the growth and maintenance of foundational jobs. If passed, LD 1711 would have a negative impact on attracting and keeping foundational jobs in Maine. There are already numerous policies dealing with the enforcement of employment laws. Employers already work with the employees to navigate the laws to make sure they are followed. This legislation would make Maine less competitive, not more, by creating an atmosphere of litigation and distrust between employees and employers. This proposal would add another layer of burdensome regulation on Maine employers. It is based on the faulty premise that Maine employers do not generally comply with employment laws. LD 1711 will worsen conditions and further exacerbate Maines already low business rating by saddling it with an incredibly burdensome labor provision that other states don’t have. Maine ranks #46 for business environment and #36 for economic strength, both of which are the lowest in the region. In 2020, Maine ranked #45 in America for Venture Capital Investment. New Hampshire saw nearly 3x the investment. Adding more regulations and burdens on employers at a time when most are already struggling will not help Maine's economy. Instead, we should be addressing legislation that will help address the pending workforce crisis in our state. Over the next 5 years, Maine’s retiring workforce will leave 158,000 open jobs. Employers and managers desperately need workers and in order for our state's economy and tax base to grow, we should be passing legislation that fits into Governor Mills 10 Year Economic Plan to add 75,000 people to Maine's talent pool. This legislation would not do that. The MJC supports making workers a top priority. The best way to do that is with a robust economy full of quality jobs that provide choices, career growth, and increasing wages. This law would lead to just the reverse. Supporting working people is critical, but the important word is working. If our companies cannot compete, if money isn’t invested here, if jobs stagnate or leave, then we’ll have more and more people who are not working. There is no substitute for a good job and those jobs come from companies that compete successfully to provide goods and services. In fact, if we are going to truly improve the lives of Maine’s working men and women, we need to help our employers be more competitive not less. Individual pieces of legislation like the ones that have been introduced to this committee today are not the solution to solving our states economic problems. We have the 6th highest energy cost, the 4th highest healthcare cost, the 4th highest tax burden, and our weekly wage is $966, tied with Wyoming for 11th lowest. We encourage the Legislature to take a more comprehensive look at how taxes, regulations, infrastructure, workforce challenges, and other issues act as barriers to job creation. Maine needs to develop and follow a long term strategic plan that makes us more competitive. Thank you.
By Ben Lucas 19 May, 2021
Dear members of the 130th Maine Legislature, My name is Ben Lucas, I live in Portland, and I serve as the Executive Director of the Maine Jobs Council. The Maine Jobs Council is a new, statewide, nonpartisan, member-driven advocacy organization that advances public policies to support the creation and preservation of foundational jobs in Maine. The Maine Jobs Council opposes LD 553 and would ask that you join us in opposition and vote against LD 553 when the floor vote happens. This proposal would add another layer of burdensome regulation on Maine employers. It is based on the faulty premise that Maine employers regularly terminate their employees without cause. It ignores the fact that businesses can experience changes that require layoffs to remain viable. It disregards the fact that Maine employers deeply value – and need – their workers and invest substantial time and money in their training and development. LD 553 strikes at the heart of our mission to grow foundational jobs to support workers, families, and communities and help us build economic prosperity for Maine. At a time when Maine desperately needs to make itself more competitive for job creation and business investment, LD 553 will worsen conditions and further exacerbate Maines already low business rating by saddling it with what might be the single most burdensome labor provision in the nation. This legislation would once again make Maine an outlier with the rest of the region and continue to make Maine less attractive to capital investment. In 2020, Maine ranked #45 in America for Venture Capital Investment. New Hampshire saw nearly 3x the investment. Capital investment is the best way to solve our state's complex economic problems. We need to start growing our tax base and increase our base of stable, good paying jobs. The best way to do this, is attract investment into Maine. Investors will go where they have the best opportunity to see a return and right now that is not Maine. This legislation will continue to have a negative impact on investment into our state. Maine ranks poorly for business climate, business costs, tax burden, low investment, GDP, productivity, exports, infrastructure, wages, and has high living costs and poor job prospects. Maine simply cannot afford to make our state even less hospitable to job creators. Our members care deeply about their employees. They invest heavily in recruiting, training and retaining our workers. They work hard to be a place where employees can spend their careers. With Maine's workforce shortages, the last thing we want to do is lose employees. However, Maine employers cannot always guarantee a job forever. Conditions change. Seasons change. Markets change. Production methods change. There are many reasons why employers need the flexibility to reduce their workforce to remain viable and protect other jobs. The MJC supports making workers a top priority. The best way to do that is with a robust economy full of quality jobs that provide choices, career growth, and increasing wages. This law would lead to just the reverse. Supporting working people is critical, but the important word is working. If our companies cannot compete, if money isn’t invested here, if jobs stagnate or leave, then we’ll have more and more people who are not working. There is no substitute for a good job and those jobs come from companies that compete successfully to provide goods and services. Managers need flexibility to do that and they cannot be burdened with limitations that their competitors from other states don’t carry. In fact, if we are going to truly improve the lives of Maine’s working men and women, we need to help our employers be more competitive not less. Legislation like this is not the solution to Maine's economic problems. Maine ranks #46 for business environment and #36 for economic strength. Both of which are the lowest in the region. We have the 6th highest energy cost, the 4th highest healthcare cost, the 4th highest tax burden, and our weekly wage is $966, tied with Wyoming for 11th lowest. We have a pending workforce crisis, over the next 5 years, Maine’s retiring workforce will leave 158,000 open jobs. We encourage the Legislature to take a more comprehensive look at how taxes, regulations, infrastructure, workforce challenges, and other issues act as barriers to job creation. Maine needs to develop and follow a long term strategic plan that makes us more competitive and creates a tax base that works for all Mainers. Thank you and this letter has been signed by members of our Board. Sincerely, MAINE JOBS COUNCIL BOARD OF DIRECTORS: Joel Allumbaugh, The Allumbaugh Agency Mitch DeBlois, DeBlois Electric Joe Edwards, Alliance for Maine Tim Hebert, Hebert Construction Marc Lacasse, Augusta Fuel Company Jim Lynch, Maine Commercial Tire Amos McCannell, HO Bouchard Andy Nichols, Elmet Technologies Brian Parke, Maine Motor Transport Association Brian Souers, Treeline
By Ben Lucas 19 May, 2021
Senator Chipman, Representative Terry, and members of the Committee on Taxation, my name is Ben Lucas, I live in Portland, and I serve as the Executive Director of the Maine Jobs Council. The Maine Jobs Council is a new, statewide, nonpartisan, member-driven advocacy organization that advances public policies to support the creation and preservation of foundational jobs in Maine. I am here today to testify in opposition of LD 1677. High earners in Maine already pay a huge percentage of state taxes. Our last review found that the top 1% of earners pay 40% of state income taxes and almost certainly much higher than average property, excise, and sales taxes. Rather than giving them reasons to leave or discouraging more of them from coming here, we should be attracting them and reducing our need for higher taxes by cutting the cost of government and making it considerably more efficient. Maine could be a destination state and that is a better way to grow the tax base. Maine is the safest state in the nation and ranked in the top 10 for natural environment. It is a wonderful place to live and if we improved the business climate, attracted innovation and jobs, and gave people a more prosperous, diverse economy where families and careers could thrive, we could be a magnet state with a sustainable, broader tax base and ultimately more money for government and social programs and perhaps even less need. Among American states, Maine ranks #46 for business environment and #37 for economic strength. Both of which are the lowest in the region. One of the primary reasons for this is that we already have high taxes. Maine currently has the 4th highest tax burden in the United States. This is a combination of high property taxes, high income taxes, and high sales and excise taxes. These LDs would all raise taxes and make it even less likely that Maine would attract or retain foundational jobs, innovation, and investment. The Office of Fiscal and Program Review says Maine’s income is projected to increase by 462-million dollars this year and 460-million dollars next year, which is ahead of the projections when COVID started. There is also a record amount of federal money coming into Maine. There is no need to increase taxes, we should instead be focusing on passing legislation that helps make us more competitive with the New England region, and not an outlier. Bills like this are not the solution to Maine's economic problems. We have the 6th highest energy cost, the 4th highest healthcare cost, the 4th highest tax burden, and our weekly wage is $966, tied with Wyoming for 11th lowest. We encourage this committee to take a more comprehensive look at how taxes, regulations, infrastructure, workforce challenges, and other issues act as barriers to job creation. Maine needs to develop and follow a long term strategic plan that makes us more competitive and creates a tax base that works for all Mainers. Thank you.
By Ben Lucas 19 May, 2021
Senator Chipman, Representative Terry, and members of the Committee on Taxation, my name is Ben Lucas, I live in Portland, and I serve as the Executive Director of the Maine Jobs Council. The Maine Jobs Council is a new, statewide, nonpartisan, member-driven advocacy organization that advances public policies to support the creation and preservation of foundational jobs in Maine. I am here today to testify in opposition to LD 1514. If passed, Maine would be one of the only states in the country to create a tax like this. The other state is California, which is the richest in the country. There is very little that the economies of Maine and California have in common. Maine ranks #46 for business environment and #36 for economic strength. Both of which are the lowest in New England. One of the primary reasons for this is that we already have high taxes. Maine currently has the 4th highest tax burden in the United States. This legislation would increase the overall tax burden in Maine and make it even less likely that Maine would attract or retain foundational jobs, innovation, high earners, and investment. We oppose such legislation because it is antithetical to our mission advocating for economic prosperity by promoting the growth and maintenance of foundational jobs. Given our poor economic rankings and our already high taxes and operating costs. We have the 6th highest energy cost, the 4th highest healthcare cost, the 4th highest tax burden, and our weekly wage is $966, tied with Wyoming for 11th lowest. We’re in no position to create a new tax, which would make us even more expensive, complicated, and unwelcoming to jobs, innovation, and investment. We should be focusing on addressing legislation that helps make Maine more competitive, not less. In order to solve the pending workforce crisis in Maine, we need to be more attractive as a state to investment. In 2020, Maine ranked #45 for venture capital funding, lowest in the region. Over the next 5 years, Maine’s retiring workforce will leave 158,000 open jobs. In order for our state's economy and tax base to grow, we should be passing legislation that fits into Governor Mills 10 Year Economic Plan to add 75,000 people to Maine's talent pool. This legislation would have a negative impact on investment as it could harm folks looking to invest and bring millions of dollars into Maine. The Office of Fiscal and Program Review says Maine’s income is projected to increase by 462-million dollars this year and 460-million dollars next year, which is ahead of the projections when COVID started. There is also a record amount of federal money coming into Maine. There is no need to increase taxes or create a new, unprecedented tax that has a lot of questions surrounding what could be taxed and the implementation of it. We encourage this committee to take a more comprehensive look at how taxes, regulations, infrastructure, workforce challenges, and other issues act as barriers to job creation. Maine needs to develop and follow a long term strategic plan that makes us more competitive and creates a tax base that works for all Mainers. Thank you.
By Ben Lucas 19 May, 2021
Senator Brenner, Representative Tucker, and members of the Committee on Environment and Natural Resources, my name is Ben Lucas, I live in Portland, and I serve as the Executive Director of the Maine Jobs Council. The Maine Jobs Council is a new, statewide, nonpartisan, member-driven advocacy organization that advances public policies to support the creation and preservation of foundational jobs in Maine. I am here today to testify in opposition to LD 1541. If passed, this legislation will make Maine an even greater outlier with the rest of New England and the country. Among American states, Maine ranks #46 for business environment and #37 for economic strength. Both of which are the lowest in the region. Some of the reasons for this, we have the 6th highest energy cost, the 4th highest healthcare cost, the 4th highest tax burden, and our weekly wage is $966, tied with Wyoming for 11th lowest. This legislation would increase the overall burdens and costs in Maine, by increasing our price for products between 4-6%. This increase in costs will impact Maine families and foundational jobs because they are the ones who will feel the burden of increasing prices for goods and services. This legislation would raise operating costs even higher, put us at a greater disadvantage, and make Maine even less likely to attract jobs, investment, and innovation. The Office of Fiscal and Program Review says Maine’s income is projected to increase by $462-million this year and $460-million next year, far better than the projections when COVID started. There is a record amount of money coming into Maine from the federal government, with around $500 million going to municipalities. We feel this could be a better way to cover the cost of recycling. Adding more regulations and burdens on employers at a time when most are already struggling will not help Maine's economy. Over the next 5 years, Maine’s retiring workforce will leave 158,000 open jobs. In order for our state's economy and tax base to grow, we should be passing legislation that fits into Governor Mills 10 Year Economic Plan to add 75,000 people to Maine's talent pool. This legislation would not do that. Increased costs make it harder for employers to compete and the focus of the legislature should be advocating for economic prosperity by promoting the growth and maintenance of foundational jobs. If Maine companies cannot compete, if money isn’t invested here, if jobs stagnate or leave, then we’ll have more and more people who are not working. In closing, We encourage this committee to start taking a more comprehensive look at how increased costs, regulations, infrastructure, workforce challenges, and other issues act as a barrier to job creation in our state. Maine needs to develop and follow a long term strategic plan that makes us more competitive and keeps jobs in Maine. We urge this committee to vote ONTP. Thank you.
By Ben Lucas 10 May, 2021
Senator Chipman, Representative Terry, and members of the Committee on Taxation, my name is Ben Lucas, I live in Portland, and I serve as the Executive Director of the Maine Jobs Council. The Maine Jobs Council is a new, statewide, nonpartisan, member-driven advocacy organization that advances public policies to support the creation and preservation of foundational jobs in Maine. I am here today to testify in opposition to LD’s 1136, 1443, and 1500. Among American states, Maine ranks #46 for business environment and #37 for economic strength. Both of which are the lowest in the region. One of the primary reasons for this is that we already have high taxes. Maine currently has the 4th highest tax burden in the United States. This is a combination of high property taxes, high income taxes, and high sales and excise taxes. These LDs would all raise taxes and make it even less likely that Maine would attract or retain foundational jobs, innovation, and investment. High earners in Maine already pay a high percentage of state taxes. Our last review found that the top 1% of earners pay 40% of state income taxes. Rather than giving them reasons to leave or discouraging more of them from coming here, we should be attracting them and reducing our need for higher taxes. Raising taxes may actually lead to less revenue in the long run as some people move away and others do not come or invest. The combination of a poor economy that provides limited career opportunities and growth, high taxes, a low business environment ranking, a shrinking workforce, declining school enrollments, and statewide deaths exceeding births provide powerful economic and demographic evidence that Maine’s on the wrong track. At a top rate of 7.15%, Maine’s income tax is 11th highest in the United States. This legislation would create top brackets of 10.15%, 12.4%, or 13.15%. This would put only California and Hawaii ahead of us. One of which is the richest in the country and the other is an island thousands of miles from the mainland where shipping and isolation make everything more expensive. There is a direct connection between our high taxes and our low economic rankings. If this legislation passes, Maine will be even less competitive with other states and it will be even less likely high earners, innovators, leaders, and foundational jobs will move or stay here. Maine could be a destination state and that is a better way to grow the tax base. Maine is the safest state in the nation and ranked in the top 10 for natural environment. It is a wonderful place to live and if we improved the business climate, attracted innovation and jobs, and gave people a more prosperous, diverse economy where families and careers could thrive, we could be a magnet state with a sustainable, broader tax base and ultimately more money for government and social programs and perhaps even less need. The Office of Fiscal and Program Review says Maine’s income is projected to increase by 462-million dollars this year and 460-million dollars next year, which is ahead of the projections when COVID started. There is also a record amount of federal money coming into Maine. There is no need to increase taxes, we should instead be focusing on passing legislation that helps make us more competitive with the New England region, and not an outlier. Bills like this are not the solution to Maine's economic problems. We have the 6th highest energy cost, the 4th highest healthcare cost, the 4th highest tax burden, and our weekly wage is $966, tied with Wyoming for 11th lowest. We encourage this committee to take a more comprehensive look at how taxes, regulations, infrastructure, workforce challenges, and other issues act as barriers to job creation. Maine needs to develop and follow a long term strategic plan that makes us more competitive and creates a tax base that works for all Mainers. Thank you.
By Ben Lucas 10 May, 2021
Senator Chipman, Representative Terry, and members of the Committee on Taxation, my name is Ben Lucas, I live in Portland, and I serve as the Executive Director of the Maine Jobs Council. The Maine Jobs Council is a new, statewide, nonpartisan, member-driven advocacy organization that advances public policies to support the creation and preservation of foundational jobs in Maine. I am here today to testify in opposition to LD 1342 and LD 1418. Passing a local option sales tax will increase the overall tax burden in Maine. Maine currently has the 4th highest tax burden in the United States. This is a combination of high property taxes, high income taxes, and high sales and excise taxes. Two of the three states ahead of us are Hawaii, an island thousands of miles away where everything is more expensive. The other is New York, one of the wealthiest states. This legislation would raise taxes even higher, put us at a greater disadvantage, and make Maine even less likely to attract jobs, investment, and innovation. A report from Oxford Economics ranked Maine #1 in the nation for economic vulnerability from the pandemic. The reasons for this are our percentage of small businesses, their limited ability to cope, our aging workforce, and our dependence on tourism and retail. For these reasons, the Maine Jobs Council opposes any new taxes or any tax increases. Small business is the backbone of Maine’s economy and this legislation would do considerable harm to a sector that is vital, vulnerable, and has already suffered from recent events. More stress and expense will negatively impact the employees who work for small businesses and make it even harder for them to pay mortgages, taxes, and support their families. I would also note that the Office of Fiscal and Program Review says Maine’s income is projected to increase by $462-million this year and $460-million next year, far better than the projections when COVID started. There is a record amount of money coming into Maine from the federal government, and just last week, legislation passed the Senate and House that would fully fund municipal revenue sharing once again at 5%. There is no need to increase taxes, we should instead be focusing on passing legislation that helps make us more competitive with the New England, region, and not more of an outlier. We also have concerns about individual municipalities choosing to enact a local option sales tax and others not. We feel this is bad public policy and legislation should be focused on addressing a statewide comprehensive plan. We have economic challenges all across the state and we should be addressing legislation that helps address all issues. A patchwork of taxes sends a difficult message to investors looking to relocate to Maine, and Maine based companies looking to expand. This could hurt foundational job growth, investment, and innovation. All of which are critical to helping solve the workforce crisis in Maine, and help our economy grow. Bills like this are not the solution to Maine's economic problems. Currently Maine ranks #46 for business environment and #37 for economic strength.We have the 6th highest energy cost, the 4th highest healthcare cost, the 4th highest tax burden, and our weekly wage is $966, tied with Wyoming for 11th lowest. We encourage this committee to take a more comprehensive look at how taxes, regulations, infrastructure, workforce challenges, and other issues act as barriers to job creation. Maine needs to develop and follow a long term strategic plan that makes us more competitive and creates a tax base that works for all Mainers. Thank you.
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