Senate Democrats Pass Tax Increase over Republican Objections

AUGUSTA – Last night, the Democrat Majority in the Senate passed several tax increases to fund Dirigo Health.  For several years Dirigo Health has been on life support failing to reach the benchmarks promised to the people Maine at its inception.

Last night’s tax increases passed on a strict party line vote and will raise taxes on beer, wine, soda, and flavored water.   In addition to these tax increases the new law will tax your health insurance claims at nearly 2%.  Furthermore the bill borrows money from the general fund and raids the Fund for Healthy Maine. 

“In an effort to save a program, which from the beginning has failed to meet the promises it made, Democrat leadership has taken borrowed money, and raised taxes – two things they promised not to do during the budget debate,” Senate Republican Leader Carol Weston said.  “Once again the Democrats have used their position in the majority to increase the tax burden of Maine citizens.”

“Mainers already pay the second highest insurance premiums in the country and the tax increases passed last night will only drive our premiums higher.  Some have said we are leaders in the insurance industry unfortunately for the people of Maine we are leading the charge to the back of the pack.”

Senator Rosen Assistant Republican Leader in the Senate said, “We had the opportunity last night to pass several measures that would have dramatically helped lower the cost and increase access to health insurance in Maine.  Yet both measures, to create a re-insurance pool and a high risk pool, were defeated along party lines.  Instead of working in a bi-partisan way to increase the number of Mainers insured and in turn lower the cost of insurance, the Democrats chose to take more money out of the pockets of hard working Mainers to fund a failed Dirigo Health system.  Raising taxes has been the Democrat solution for 35 years perhaps it is time to try something new.”

The new taxes will go into effect ninety days following the end of the legislative session.