June 10, 2003 OP ED COLUMN

MAINE WOULD BE HURT BY PROPOSED TAX BREAKS


By Edward Gorham
President
Maine AFL-CIO

Just before taking a two-week vacation in April, Congress approved a budget that makes the situation in Maine worse, not better, even as they set aside billions for tax cuts that have no impact but to benefit the wealthy.

Urgent Needs in Maine Unmet

Here in Maine the last two years have been tough enough for working families without the federal government making things worse.  In Maine, 132,000 individuals have no health care, including 16,000 children.  More than one-tenth of Maine children live in poverty.  We have urgent needs in our state that are expensive to fix while we struggle with a $518 million deficit.  How can we fix the 19 percent of our roads that are in poor to mediocre condition, and 78 percent of our schools that need repairs to be in good condition?

Tax Cuts for the Wealthy

At the national level we have urgent problems that we have to fix now.  Our children are trying to learn in schools that leak in the rain.  Seventy-five million people went without health care at some point in the last two years.  The nation has lost an average of 100,000 jobs every month since President Bush came into office, yet Republican leaders in Congress and President Bush still insist that we must cut programs that could improve our lives to pay for tax cuts that benefit the wealthy.

Earlier this month the Maine AFL-CIO and Fair Taxes for All released a report by the Economic Policy Institute and the Institute for America’s Future that detailed how crucial programs in Maine would fare in this budget full of tax breaks.  We found that Maine will lose $17 million over the next decade for education and job training.  $15 million for health care.  $12 million for police and security.  That’s an 8 percent cut in what Maine will receive from the federal government to keep up with new homeland security needs. 

 Political Cover for Bush

The president’s argument that tax cuts will create jobs is just political cover, and has been widely rejected by experts and economic institutions.  Since President Bush first suggested a second round of tax cuts, Federal Reserve Chairman Alan Greenspan and the non-partisan Congressional Budget Office agreed that the Bush tax cuts will not spur economic growth.  The Economic Policy Institute found that the Bush tax cut would actually cost the nation 750,000 jobs.  Ten Nobel prize winners and 450 economists called the Bush plan “misdirected” and the International Monetary Fund questioned the value of the Bush tax cuts.

Our states are in the worst fiscal crisis since World War II and Congress is facing record deficits.  Yet our elected leaders’ economic policy is to cut programs that improve our lives while assuring that millionaires get tax breaks.  Either they don’t get what’s going on in peoples’ lives or they don’t care.

 Blueprint for U.S. Bankruptcy

With the weak economy, the health care crisis and our commitment to shore up Social Security and Medicare, the Bush budget and tax cut plan is a blueprint for bankruptcy. 

The tax cut proposal is going to be finalized in May. Senators Collins and Snowe can do the right thing for Maine by rejecting the tax cuts and demanding that the money be used to rebuild our economy in a way that benefits all of us, not just the wealthy. 

In America it’s not supposed to be all pain for the working people and all gain for the millionaires.

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