Maine People's Alliance - Press Releases

Do Senators Collins and Snowe support more tax breaks for gas companies, millionaires, and pain at the pump?

Lewiston, ME—The Maine People’s Alliance and the Maine Emergency Campaign for America’s Priorities held a press conference on Monday, May 8, to draw attention to the devastating impact the extension of capital gains and dividend tax cuts would have on Maine. Income inequality has widened nationwide and Maine is no exception. As the House and Senate Republicans finish the conference report on tax reconciliation, there is a growing income disparity in Maine and nationwide caused by shifting taxes away from those who are most able to pay. The local impacts of these tax breaks for the wealthiest members of our society threaten to ravage Maine’s economy and come at the same time vital services and programs are being cut nationwide.

The capital gains and dividend tax cuts in tax reconciliation, which primarily benefit the wealthiest one percent of Americans with an average income of over $1 million, are particularly regressive. Although these tax cuts will not expire for a few more years, the Bush administration and Republican leaders in Congress are attempting to extend them now—at the same time as the Republican leadership and the president are touting cuts to education, veterans’ benefits, and health care for the poor.

“This is a moment of great moral urgency for our nation. We want budgetary laws that reflect the moral priorities of a wide majority of Americans. Yet, we are faced with an immoral budget and tax reconciliation bill. This bill would close the door on the poor, the hungry and the elderly. We urge the Maine delegation in Congress to put Maine’s people first and reject these immoral tax breaks for millionaires at the expense of working families and our state,” said Sr. Claire Lepage, of the Sisters of St. Joseph and a resident of Lewiston.

Even as Americans demand greater transparency and reform from their government, press reports indicate that an emerging conference agreement on tax reconciliation may rely on a deceptive budget gimmick. The American public expects its representatives in Washington to make responsible decisions and to be honest about the consequences of their policies—especially when those policies would worsen our nation’s already severe budget problems.

“The emerging tax reconciliation agreement isn’t in Maine’s interest, period. According to Congress’s Joint Committee on Taxation, the expected centerpiece of that agreement—an extension of the capital gains and dividend tax cuts—would cost about $50 billion over the next ten years, a time when large budget deficits are already forecast. The benefits of extending the capital gains and dividend tax cuts would go overwhelmingly to the highest-income households—the households least in need of extra help. Reconciliation tax cuts would average $42,000 for households with income over $1 million, but only $20 for middle-income households,” said Milt Hillery of the Maine People’s Alliance.

And while Senators Snowe and Collins are in Washington criticizing soaring gasoline prices and energy industry profits, will they practice what they preach? The Senate’s present version of tax reconciliation would boost taxes on oil companies by $4.3 billion, requiring them to use the price of their most recent oil inventories, not their oldest as they currently do, to calculate their tax liability. However, the Republican leadership has decided to knock out those provisions in the tax reconciliation bill that would require oil and gas companies to pay a fair share of taxes on their record profits. Standing outside of Senator Susan Collins’ Lewiston office and holding a giant check in the amount of $4.3 billion, members of the Maine People’s Alliance asked Senators Snowe and Collins, “To whom should this check be made out—large oil companies or to working families?”

“During the administration of President Bush, the Republican majority in Congress has given tax breaks to the oil and gas companies and suspended important sources of revenue like the capital gains tax. In the process they have created an enormous federal debt and jeopardized the future of our children and the security of working families, the elderly and veterans. The citizens of Maine now turn to Senator Snowe and Senator Collins and ask them if they will stand up to the leadership of their own party and vote to support the needs of their constituents over the interests of the wealthiest corporations and individuals in the country. Will they do right by the citizens of Maine and oppose the Tax Reconciliation bill?” asked Jim Parakilas of Lewiston.

“We hope Senators Snowe and Collins don’t protect the oil companies swimming in record profits. ExxonMobil, Chevron, ConocoPhillips have more than $40 billion in cold, hard cash. In fact, ExxonMobil’s CEO just walked away from his job with a $400 million compensation package. That’s enough for about 8,000 teachers in our community. Enough is enough. Senators Snowe and Collins: Vote against Tax Reconciliation,” added Milt Hillery.