Maine voters to have say on beverage tax in November

Seacoast Online ^ | 10/2/08 | Jim Kanak

[Fed Up With Taxes]

Maine voters in November will consider a ballot question seeking to overturn a newly-minted state law that changes the funding method for the Dirigo Health Program.

[Fed Up With Taxes]

Dirigo Health is the state's program for uninsured people, small businesses and certain low income residents.

Question 1, known as the People's Veto, asks voters if they want to reject parts of the new law that uses new taxes on beer, wine, and soft drinks — as well as charges health insurance companies a fixed fee on paid claims — to fund the program. It's the beverage tax that has raised the most opposition.

"This is a massive tax," said Newell Augur, a member of the group Fed Up with Taxes. "It will hit every non-alcoholic beverage that you can have in your refrigerator. It will cost $75 million in total, $40 million on beverages and $35 million on insurance claims. It's a massive tax."

Fed Up with Taxes is a coalition that includes the Maine State Chamber of Commerce, Maine Restaurant Association, Maine Grocers Association, Maine Oil Dealers Association, and Maine Beer and Wine Wholesalers Association, among others.

The opposition to the question is led by the No on One Coalition. It argues that the change in funding is necessary because the current method, based on an annual assessment on health insurers in addition to employer and employee premiums, doesn't work.

"The savings offset payment worked well in theory particularly if we'd have been able to cover most of the uninsured," said Gordon Smith of the Maine Medical Society, one of the coalition's members. "When we couldn't, the payment system became extremely controversial. Now it costs the state almost $1 million in costs to defend against the yearly challenges (to the assessment)."

Smith added that the program is unpredictable. "It's difficult to cover these folks and not know year to year what (funds) you'll have to work with," he said.

Smith challenged Augur's claims about the expected revenue from the new tax. He said the new taxes on beer, wine and soda would bring in about $17 million.

"The difference is based on the volume of consumption," Smith said. "The other side has estimated a huge amount (of consumption). The tax is only a penny on a glass of wine, three cents on beer, and four cents on a can of soda."

The No on One Coalition includes the Maine Primary Care Association, Consumers for Affordable Health Care, Maine Center for Economic Policy, and Maine Society of Eye Physicians and Surgeons, again among others. It argues that Dirigo works and could be damaged if the veto passes.

The group estimates that 18,000 children and their families and 40,000 adults who don't have employer-based insurance could lose their coverage if the veto passes.

Augur said that won't happen. He argued the current method of funding would simply continue if the question passes and that's fairer for the taxpayers.

"Maine families are struggling right now," he said. "It's absolutely the worst time for state government to be asking people to pay more money. Incomes here are low so (the new tax) makes the tax burden that much heavier. The idea of taking more money out of pocketbooks has Maine people fed up."

Smith agreed that the current funding method, which was calculated at $48.7 million in 2007, would continue but that it wasn't sufficient. "It's not enough money to continue," he said. "It would barely allow the program to continue.

Recent News Maine voters to have say on beverage tax in November Dirigo Health Plan saves less Letter from Mark Turek: Why yes on question one means no on taxes Question 1 proponents explain why a yes vote means no to new taxes Dirigo’s Defenders Waging Propaganda War By Rep. Jonathan McKane VIEW MORE Get the Flash Player to see this player.

The Facts

Q. What is a People’s Veto?

A. The People’s Veto Veto process is our right to challenge an act of the Maine Legislature by putting on the ballot. The Fed Up With Taxes Coalition collected more than 95,000 signatures from Maine citizens who oppose new taxes on beverages and health care. This allows the issue to be put on the November 4, giving all of us a chance to “Vote Yes On Question 1” to undo this tax increase that the legislature tried to sneak by us.

[Thane_Banquo]

four cents on a can of soda

You can take my Dr. Pepper WHEN YOU PRY IT FROM MY COLD, STICKY HANDS!

[Cboldt]

The ballot measure is tilted in favor of instituting the new tax. A “NO” vote means the tax goes into play.

[qman]

Dirigo Health is a sham, like all socialized medicine. They claimed that a certain number of people would sign up spreading the risk widely. The problem is the only people that signed up for it are those who constantly use it validly or not. i.e. there are very few healthy people taking advantage of the reduced premiums.
They tax other health insurance premium to help pay for it. I have a private health plan and am taxed to pay for someone else's insurance.
Insurance only works if a certain number of subscribers never use the benefit. Everyone in Dirigo is using it.

[hermgem]

And make no mistake, these $75 million are just the entrance fee.
Big slabs will follow as services are expanded additional “users” are found and this revolving door spins ever faster and faster.
The politicians door opener, namely a tax on sin and unessential items, followed by “needy” voters.

[weegee]

“The ballot measure is tilted in favor of instituting the new tax. A “NO” vote means the tax goes into play.”

Knowing how these ballot measures are “gamed”, it is one reason I am against multilingual ballots. It gives the liberals another opportunity to get voters to support something they might otherwise oppose.

Our laws are only entered into the books in one language. And within that language are plenty of appeals and challenges in the courts.

When you have MULTIPLE versions of a measure all “passing”, it gives slimy lawyers that much more wiggle room.

[hunter112]

...charges health insurance companies a fixed fee on paid claims — to fund the program.

Sounds like they just added an incentive for your health company to deny paying your legitimate claim. I would suppose the true aim is to get people to quit their health insurance companies, and get on board with socialized medicine.