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Action Alert: Mills Administration Proposes New Tax on Digital Streaming

OPPOSE LD 2011!

There’s a Scottish proverb that says, “There is no greater fraud than a promise not kept.”

On the campaign trail, Janet Mills promised not to raise taxes in her first two-year budget. In her 2019 budget address, Governor Mills told Mainers to “keep in mind: In this budget there are no tax increases. In this budget there are no gimmicks.”

A year later, Governor Janet Mills is not only increasing taxes but also using budget gimmicks to hide the tax increase.

As described in the February 7, 2020 Republican radio address, Rep. Sawin Millet states, “The Governor emphasized that the Supplemental Budget does not include any tax increases. However, she assumes the passage of LD 2011, which will soon tax digital streaming services and result in a projected net increase of $3.27 million tax dollars per year.”

That’s right, the Mills Administration put in LD 2011 to create new taxes on digital video and audio downloads, even your ringtone.

The download tax will raise $15 million in the next three fiscal years after it goes into effect Oct. 1, 2020, still within her first two-year budget cycle.

Last year, Janet Mills told the Maine people that her $8 billion budget was “sustainable.” It’s not. If it was, she wouldn’t need this new tax.

LD 2011 specifically taxes individuals to pay for the Mills Administration’s proposed amendment giving a sales tax exemption to non-profits.

LD 2011, An Act To Update Certain Provisions in the Income Tax and Service Provider Tax Laws is sponsored by Representative TIPPING of Orono, submitted by the Department of Administrative and Financial Affairs.

This bill is now going to the House and Senate to be passed into law.  Please contact your local legislators to let them know you oppose this bill. 

Find your state Senator and state Representative here.

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