July 17, 2008 - 1:59pm

On People's Veto, both sides sharpen knives and prepare for brawl

After the Fed Up With Taxes coalition submitted 90,000 signatures to the Secretary of State's office, likely putting a People's Veto for beer and wine taxes on the November ballot, House Minority Leader Josh Tardy is predicting a "bruising battle" leading up to Election Day.
The coalition is fighting the recently passed taxes on beer, wine, and soda to support Dirigo Health. The bill also adds a 1.8 percent surcharge on hospital bills and doctor's fees, according to a release from Tardy's office.
The taxes do not apply to Maine breweries and wineries.
The coalition turned in 90,000 signatures to the Secretary of State's office this week - far more than the 55,087 needed for a People's Veto.
If the signatures are validated, then the voters will decide on the taxes in November.
Health Coverage for Maine, has launched a campaign of their own to fight the veto. They claim that fraudulent practices were used in the signature gathering process.
Fed Up With Taxes, however, is claiming that its opponents are the ones putting out misinformation.
Jen White, president of Health Coverage for Maine, said Thursday that they have been contacted by a number of people claiming fraudulent petition gathering practices. She said some signers were told the taxes would apply to items such as milk and bottled water. In other cases, the petition was just left out with no one witnessing the signatures.
Currently they are encouraging people who signed to remove their names by contacting the Secretary of State's office.
If the signatures are validated, White said the group is weighing its options, which could include a formal challenge to some of the petitions.
"We are pressing the Secretary of State to look into some of the fraudulent practices," White said.
Newell Augur, chairman of Fed Up with Taxes, said, called their opponents claims gimmicks, then made a few claims of his own. He said they are characterizing it as just a beverage tax, when in fact it does apply to some juice drinks, flavored waters and teas.
In addition, he said his opponents are downplaying the magnitude of the taxes. Their claim: it's only $55 million in new taxes - really its $75 million, he said. Their claim: people will lose health care if the tax is repealed, but he said people won't.
For those who oppose the taxes, it's not just that they were passed, but also how they were passed. The program was originally supposed to tax cigarettes. When that didn't have the votes needed to get through the Legislature, the taxes were shifted to beer, wine and soda at the last minute, without a public hearing.
Tardy said he expects lots of misinformation and deceptive advertising leading up to November.
"The idea of increasing taxes when state residents are deeply worried about heating oil costs, gas costs, food costs and a shaky economy strikes many folks as senseless," Tardy said. "We already have the second-highest tax burden in the nation. What makes this tax increase so damaging it that it will add to the cost of health insurance at a time when we already have an insurance affordability crisis. It will add about $210 a year to a family policy."

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