When Mainers go to the polls on June 8, they will have the opportunity to cast a series of votes that would give the state’s economy a much-needed boost.

 A “No” vote on Question 1 will allow tax reforms passed by the Legislature in 2009 to take effect, cutting taxes by an average of $150 for nine out of ten Mainers.

A “Yes” vote on Questions 2, 3, 4, and 5 will approve bond issues totaling approximately $108 to fund transportation and other infrastructure improvements, create and preserve thousands of jobs and make Maine a more attractive place to do business.

Tax reforms enacted in 2009 are on hold pending the outcome of the June referendum. They will change Maine’s income tax, sales tax and Maine’s Residents Property Tax and Rent Refund program (the “circuit breaker” program). A single 6.5 percent income tax rate will replace the four current marginal rates. People earning $250,000 or more a year will pay an additional .35 percent surcharge. New tax credits (including a refundable household credit for Maine residents exclusively) will replace standard and itemized deductions and preserve overall progressivity.

The reforms also broaden the sales tax base to include additional services and modify the circuit breaker program to provide property tax relief to more Maine residents. It exports almost $40 million in taxes to nonresidents in 2011 alone.

Maine Revenue Services projects that nearly nine out of 10 Maine families will realize a net tax decrease due to the reduced income tax. When all the tax reforms are considered together, MRS calculates Mainers receiving tax cuts will save, on average, approximately $150. These are funds Mainers will most likely spend in their local economies, helping to preserve existing jobs and create new ones.

These reforms will improve the stability of state revenues and the reliability of funding for health care, education, infrastructure improvements and other services important to a strong, prosperous Maine economy. The new, lower marginal rate also addresses the perception shared by many in the business community that the existing higher rate hurts Maine’s business climate.

Questions 2, 3, 4 and 5 on the June 8th ballot contain bonds approved by the Legislature with overwhelming bipartisan support. These bonds will fund much needed transportation and other infrastructure. They represent investments that will pay tremendous benefits by creating and preserving jobs and helping to make Maine a more attractive place to do business.

One portion of the bonds will help to purchase Montreal, Maine & Atlantic Railway rail lines scheduled for abandonment. This measure alone would help save 750 jobs in Aroostook County. The bond package also allocates $24.8 million for high priority transportation projects; $5 million to improve and expand rail service in Lewiston and Auburn; $6.5 million for a deep-water port in Portland; $500,000 for the Small Harbor Improvement Program; $5 million for wind power research and development at the University of Maine; and $5 million for community-based health and dental priorities. Collectively, these bonds will give Maine’s economy a significant shot in the arm.

Private business activity is unquestionably the key to a competitive Maine and national economy. But in this severe recession, government must also act to fuel the engine of economic recovery. The 2009 American Recovery and Reinvestment Act, supported by Maine’s entire congressional delegation, provided timely and targeted investment that the Council of Economic Advisers estimates preserved or created 13,000 Maine jobs.

On the state level, our decisions on tax reform and the jobs bond package can help Maine to recover and prosper. Vote NO on Question 1 to make Maine’s tax system fairer and more progressive and give Maine families welcome tax relief. Vote YES on Questions 2, 3, 4 and 5 to approve bond issues that will create and preserve jobs and make Maine a more competitive place to do business. On June 8th cast your vote for a stronger, more prosperous Maine economy.

”“ Christopher St. John is Executive Director of the Maine Center for Economic Policy, the state’s leading non-profit research and policy development organization. More detailed information is available on MECEP’s website, www.mecep.org.