Tax Free Zone Proposed for Washington County

FreeME

An initiative proposed by Maine Heritage Policy Center and being evaluated by Gov. Paul LePage's administration is calling for a tax free zone in Maine's poorest county - Washington county. Where residents and businesses would stop paying not only state income taxes but any sales tax. This would go on until economic conditions reached a state wide average. This level would have to maintain for three years.

Maine Heritage Policy Center sees this as having the potential for an economic boom for the area and for the state. There are detractors both in Washington county and the state that say the county is pulling itself up by its bootstraps now and that there is alternative motives behind the recommendations. That Maine Heritage is looking out for big business and not the common person.

The idea is that the tax burden that Mainers bear overall is preventing economic development where it matters most. By correcting where the economics is worse in the state it will only benefit the state as a whole. This program would expand from Washington county to Aroostook county when Aroostook moves into last place. This would continue to spread to other counties so that eventually the whole state would be a tax free haven.

There are many - the article points out - that feel the economy in Washington county is rebuilding itself because of grassroots efforts by local businesses and government. This off of a very limited economy that relies on land, wood, fishing, blueberries and the arts to name a few.

Some of the detractors state that buying $50 in clothing at the store would only save $3 in sales tax but it will not do much for the average citizen over any amount of time.

RepubliCAN of Maine would take exception with this statement. Any relief should be welcomed and what is being proposed goes beyond just the relief one would get from everyday purchases at the store. In the poorest county of the state the extra money in the pocket can be put back into the local economy or personal savings. It does not stop there. What the article does not expand on is the fact that local residents will no longer be paying state income taxes. Creating a tax free zone that would benefit not only those living within Washington county but also those in New Brunswick Canada, and surrounding counties of Maine to purchase goods and services tax free. In other words the effect would be far reaching beyond just Washington county. With an increase of sales to current businesses will bring an influx of businesses and jobs to the area offering Washington county a diversity and variety of services that it has not seen in its long history.

Will a tax free zone solve all of the problems facing Washington county... probably not. It will offer opportunity to the area that could potentially uplift the area and offer a diversity and stability not currently seen. What does Washington county have to loose from this experiment - nothing but taxes and that can only be seen as a good thing.