• President Obama is sympathetic to the idea that we should eliminate nuclear arsenals worldwide, including that of the US. He gave an April 2009 speech in Prague where he said, "I state clearly and with conviction America's commitment to seek the peace and security of a world without nuclear weapons."
• The Obama Administration has issued in 2010 a new Nuclear Posture Review about which journalist Robert Sheer (of "With Enough Shovels" fame) suggested that the president with it moved towards "Earning His Nobel Prize" because it (and I’m quoting Sheer) "pledges a halt to U.S. efforts to modernize such weapons, as had been proposed by then-President George W. Bush in his call for new nuclear 'bunker busters.'" Doubtless, this is a major step in the right direction.
• President Obama has signed a new (START) Strategic Arms Reduction Treaty with Russia. In my view, the importance of this Treaty is the signal it sends that the US and Russia know the Cold War is over, even though the overwhelming impetus of those awful decades is taking decades to undo.
• Last, I’ll mention that for the first time ever, the US sent an envoy to Hiroshima to participate in the commemoration of the bombings. "For the sake of future generations, we must continue to work together to realize a world without nuclear weapons," said the envoy, John Roos, in remarks echoing a statement made by Secretary of State Clinton yesterday.

• One is to let our senators know that we want the new START Treaty ratified.
• Two is we can tell our senators that the decades-long unfinished business of a Comprehensive Nuclear Test Ban Treaty finally must be ratified, 14 years now after President Clinton signed it, but blocked by Republican opposition.

I mainly got in touch to share another sad message -- Commissioner Cole held a breakfast this morning ( June 23, 2010 )at the Sea Dog with the Bangor Chamber of Commerce to discuss -- the CONTAINER PORT ON SEARS ISLAND ! Now that the Transportation Bond passed, the State (MDOT) will soon own the rail connection to Mack Point, and I think a new marketing campaign is about to begin. The pressure's on to turn this part of Maine into a major shipping corridor ...questions remain. Will the Army Corps accept their most recent UMBT proposal? How many times are they allowed to rewrite it -- until it passes ? They're just about to re-dredge Searsport Harbor -- are they going to use that as part of their campaign ? And when all is said and done, will they attract an investor ? Will they talk the State govt. into funding this everlasting 3-port vision? And what the blazes will they be shipping overseas and into the U.S. ? Will we be getting stuff from China that will end up at Marden's ? Liquid Natural Gas ? Will we be sending out wind turbine parts, Blueberry juice and wood products ? The Sears Island port idea isn't over -- someone needs to tell Steve Miller of Islesboro Islands Trust that his article in the Free Press (12/17/2009) which optimistically projected zero marine industry interest, is not the final word. The MDOT is still interested, the Transportation Committee is still interested, and Gov. Baldacci is still involved -- they're painting gold leaf on their rail and port "vision" as we speak. Sears Island is still in danger -- and the MDOT didn't even pay for the breakfast at the Sea Dog !

• Sears Island marketeer was hired June 1 [2009]
• Sears Island boondoggle

...On June 9, 2010—after much delay caused by such unforeseen events as Brazil and Turkey resisting the repetition of the Iraq scenario--the fourth UN sanction resolution against Iran was passed by the Security Council, with Brazil and Turkey voting 'no' and Lebanon abstaining. The passage of the resolution officially ends the 'tough diplomacy' phase of the Obama Administration's Iran policy. So far, the policy has followed closely the script written by Dennis Ross and his associates in the Washington Institute for Near East Policy. If the script is followed all the way through, we should expect the next phases to consist of more severe unilateral sanctions, a naval blockade, and, ultimately, military actions against Iran. The last phase would complete the US-Israeli policy of dual containment of Iran and Iraq.

On April 12, 2010, President Barack Obama hosted a forty-seven nation Nuclear Security Summit in Washington. He met with dozens of heads of state making his case for a fourth set of crippling sanctions on Iran because of its intransigence on the nuclear issue. His main argument was the refusal of Iran to accept the proposal by the International Atomic Energy Agency (IAEA) of transferring the bulk of Iran’s low enriched uranium outside the country in exchange for medical nuclear isotopes.

The following day Obama met with President Luiz Lula Da Silva of Brazil and Prime Minister Recep Tayyib Erdogan of Turkey ... Obama not only encouraged them to pursue a diplomatic breakthrough, but he also vowed to be constructive and flexible, as well as promising to send them in writing the parameters of any deal deemed acceptable to the US. ...

On May 17, an agreement based on the American and IAEA proposals was signed by the foreign ministers of all three countries. A week later Iran submitted an official letter to the IAEA acknowledging the pact and stating its intention to transfer its LEU to Turkey within one month once the plan was accepted.

To the complete surprise of Brazil and Turkey, the White House and the State Department dismissed the deal out of hand within 24 hours, rejecting the same principles outlined in Obama’s letter. Secretary of State Hillary Clinton even called it “a ploy” before a hearing in the Senate’s Committee on Foreign Relations on May 18, declaring that a sanctions resolution against Iran in the Security Council is imminent.

Albert A. DiMillo, Jr.: The MRS report for year 2013, estimates that a group of 4,638 taxpayers with income over $350,810 will get a net income and sales tax cut of $34.8 million. The other 99.3% of Mainers will have a net income and sales tax increase of $3.5 million.

A new refundable household credit is enacted containing the following elements:

• only resident individuals qualify; nonresidents and part-year residents do not qualify;
• the base credit amount is $700 /single; $1,050 /HH; $1,200 /MJ; $600 /MS (married separate);
• the base credit is increased by $250 for each exemption claimed on the return;
• the credit is phased out by $1.50 for every $100 that Maine taxable income exceeds: $27,500 /single/MS; $41,250 /HH; $55,000 /MJ;
• the credit is refundable up to $70 for MJ returns and $50 for all other returns.

An alternative refundable household credit is also enacted. A taxpayer who has itemized deductions may elect to use this credit instead of the regular household credit described above. The alternative credit contains the following elements:

• only resident individuals qualify; nonresidents and part-year residents do not qualify;
• the base credit amount for the alternative household credit is 5.5% of adjusted federal itemized deductions plus: $400 /single/MS; $600 /HH; $800 /MJ. (The adjusted federal itemized deductions amount is calculated using Maine Form 1040ME, Schedule 2 adjustments);
• the maximum base credit amount allowed is: $1,150 /single/MS; $1,750 /HH; $2,300 /MJ;
• the base credit is increased by $250 for each exemption claimed;
• the credit is phased out by $1.50 for every $100 that Maine taxable income exceeds: $27,500 /single/MS; $41,250 /HH; $55,000 /MJ;
• the credit is refundable up to $70 for MJ returns and $50 for all other returns.
  
  For tax years beginning after 2009, the Maine withholding tables will be adjusted to reflect the impact of the regular household credit on the Maine income tax.

On this June's ballot you'll be faced with some tough choices. One of them will be Question 1, which aims to repeal the tax reform law passed last year by the Legislature. The question asks, "Do you want to reject the new law that lowers Maine's income tax and replaces that revenue by making changes to the sales tax?"

We urge you to vote NO on Question one and support Maine's tax reform law. The law, if allowed to take effect, will move us forward as we work to recover from the current economic recession and promote prosperity for all Maine residents. Though not perfect, this law is a significant step in the right direction for Maine. It will make our tax base fairer and more stable. Reversing the law would be a mistake:

• The tax reform law makes Maine less vulnerable during tough economic times by diversifying our sales tax. Currently, Maine has one of the narrowest sales tax bases in the country. We tax just 25 out of 161 categories of goods and services, which means we rely far too heavily on the sale of certain items like cars and building supplies - making revenues soar when the economy is robust and plummet when the economy is in decline. Wild fluctuations in tax revenue hurt us all. They make public services vulnerable in tough times, often resulting in reduced funding for programs that we all rely on: education, health care, public safety and infrastructure. Such reduced funding also has negative impacts on job creation and preservation. The tax reform law helps this problem by responsibly diversifying the types of goods and services we tax.
• The tax reform law creates a fairer tax base. Residents and visitors alike benefit from Maine's public infrastructure: schools, health systems, police and fire protection, state parks, environmental protection, safe bridges and roadways, etc. As a result, both visitors and residents are responsible for working together to ensure these services and structures are supported and maintained. We do this by paying taxes. The new tax reform law balances that responsibility. It will reduce income taxes for 9 out of 10 Maine families and shift a more appropriate share of costs to tourists and visitors by broadening the sales tax base to include services used by non-residents and increasing the sales tax on select items and the lodging tax. This ensures that we are all working together for the common good.
• The tax reform law will help Maine's most vulnerable citizens. We all benefit when Maine families are healthy and prosperous, which is why Maine's tax reform law enacts a partial "refundability" of the Earned Income tax Credit (EITC) for low income Mainers. This feature of tax reform means that once the EITC has reduced a household's tax bill to zero, the family would get some or all of the remaining value of the credit. In combination with household credits under the new law this should deliver $50-$75 of direct support to at least 15,000 of Maine's lowest wage-earning families. The law also aligns the Circuit Breaker application with the timing of the state income tax form. This feature of tax reform will make it easier for tens of thousands of moderate and lower income Mainers to apply for and receive this existing tax rebate. Eligible households received $450 under this program on average in 2009-2010. Estimates from the Maine Revenue Service are for refunds to average $570 for the 2010-2011 program year.

In this challenging economy, we must think creatively to advance innovative solutions that will ensure economic recovery and prosperity now and into the future, which is exactly what Maine's new tax reform law does for all Mainers. Please join us in voting NO on Question 1.

For more information please visit the Maine Center for Economic Policy at www.mecep.org.

Signed,
Engage Maine
Homeless Voices for Justice
Preble Street
Coastal Enterprises, Inc.
Maine Center for Economic Policy
MSEA-SEIU Local 1989
Maine Council of Senior Citizens-Alliance for Retired Americans
Maine Women's Lobby

The tax overhaul passed by the Legislature last year is on hold until "Question 1" is settled at the ballot box on June 8. A "NO" vote will reject the repeal and allow this landmark law to be implemented.

The new law lowers the top income tax from 8.5% to 6.5% (on income under $250,000) and to 6.85% (on income over $250,000). But most Mainers will pay far less than 6.5%, due of a system of new household credits. Income taxes will drop for over 95% of Mainers.

At the same time, the new law expands Maine's narrow sales tax base in order to stabilize revenues and export more of the tax burden to non-residents. But in the end, the new system puts more money back in the pockets of Mainers. Nearly 90% of Mainers see an OVERALL tax cut (once both sales and income taxes are included).

Economists praise the new law because it will boost the economy and create jobs. The State Chamber of Commerce, Portland Chamber of Commerce, Bangor Chamber of Commerce, and the Androscoggin Chamber of Commerce all support it.

The politics behind this issue are frustrating. The law that passed is the outgrowth of an extremely thorough and transparent legislative process that began in 2007. At that time, several Republicans supported the bill, but Republican legislative leadership subsequently made defeat their priority, and the bill failed in the closely-divided Senate. The new bill that emerged in 2009 soon became partisan; but fortunately, that partisanship was only inside the State House. Dozens of business leaders and other citizens-both Republicans and Democrats-were engaged in the process, and they pushed for passage of the new law.

It amazes me to hear the misstatements about this law. It seems that once some people decided that it made political sense to oppose it, they forgot about truth. People who should have known better have said publicly that the law does many things it doesn't, such as taxing haircuts, electricians, and social security. Some of the latest falsehoods twist the non-partisan analysis of Maine Revenue Services in preposterous ways. Here are the facts.

NOTE: All of this information has been checked for accuracy by Maine Revenue Services.

• FACT: The NET impact of the new law is to lower the tax burden on Mainer residents by about $50 million a year. Over 87% of Mainers will have extra money in their pockets after any additional sales taxes are paid. Low income people who pay little or no income tax will receive a cash credit to compensate for sales tax increases.
• FACT: The new law shares benefits fairly. The new tax system is more "progressive" than the current code. Low and middle income Mainers will see their overall tax burden (including both sales and income taxes) drop by about 20%. Each income group pays essentially the same proportion of taxes as it does now; but because the tax burden on Mainers will be lowered by $50 million, every group wins-whether low, middle, or upper income. Higher income people do receive more money back, because they pay more in taxes; but low and middle income people receive a larger percentage decrease.
• FACT: The benefits of itemized deductions are NOT eliminated. Maine taxpayers who itemize will retain these benefits through a special new credit. In most instances, the new credits provide greater benefits than the old system. Now, these new credits do phase out as incomes rise, but very gradually (so that a couple filing jointly with large enough itemized deductions and two children will still receive some credit until their income exceeds about $275,000/year); and most higher-income taxpayers receive enough benefit from the lower top tax rate that they do not need a full credit to come out ahead. Overall, over 95% of Maine taxpayers will see lower income taxes.
• FACT: The tax benefits continue over time. The new law adjusts the credits upwards in 2014, and includes a provision to do so earlier if economic circumstances allow. But even if the credits are not increased before 2014, 93% of Mainers will see an income tax cut in 2013. And if the economy is robust and the state can afford to adjust the credits upwards before then, this favorable outcome will be even more favorable. Some opponents of the law claim the whole credit system in unconstitutional, but Maine's Attorney General has said otherwise.
• FACT: Even after new sales taxes are added, Maine will still have one of the narrowest sales tax bases in the nation (taxing far fewer items than many states). Beyond that, all of the new sales taxes on Maine residents will total about half of the amount of tax cuts that flow to Maine residents. Plus, broadening the sales tax base reduces the volatility of Maine's revenues-which will in turn help stabilize Maine's economy. The overall economic impact of this expansion will be positive.
• FACT: 40% of Maine's meals and lodging tax is paid by non-residents. That means that under the new law, a full one dollar in benefit flows back to Mainers for every 60 cents Mainers pay in meals and lodging tax. (Wouldn't you pay 60 cents to buy a dollar?) Moreover, Maine's meals and lodging rate (after the increase to 8.5%) will still be far below most destination locations and lower than our biggest competitors, New Hampshire and Vermont. And there is no evidence that increasing this tax will reduce sales. (Vermont saw no impact when it raised its rate to 9% a few years ago.) In addition, the new law pumps additional funding into tourism promotion, which is a proven way to increase business within the hospitality industry.
• FACT: The new law creates a smarter tax system that spurs economic development. It lowers Maine's top tax rate and capital gains rate, which are the major impediments to business investment and recruitment. Beyond this, Maine's small businesses will benefit from $50 million in extra money that Mainers will have to spend. In short, the vast majority of Maine businesses will see direct tax benefits, while all of Maine businesses will be poised to benefit from an improved economic climate.

I thought you would appreciate this factual information about Question 1. As always, don't hesitate to contact me with questions or comments: bartlettforsenate@gmail.com

By the time we vote on June 8, the delay caused by placing this issue on the ballot will have already cost Mainers over $20 million in savings and hundreds of new jobs! We can't afford to pass up that kind of opportunity anytime, but especially not now.

Sincerely,
Maine Senate Majority Leader Phil Bartlett

It is not bright bright orange or yellow so you can see it, dear fledgling boomer, but so Governors, Senators, Presidents and The Media can see it.

... Last week, devious brokers found their champion. Collins proposed an amendment to the reform bill, to exempt from fiduciary duty brokers who sell only mutual funds, variable annuities, and certain closed-end funds. Furthermore, the Securities and Exchange Commission could expand the exemption to brokers selling other products packaged by their firms. ...