
SANFORD — A spokesman for a group opposed to a Nov. 6 referendum that would impose a new payroll tax to fund universal home care for the elderly and disabled says the proposal is bad for Maine.
Newell Auger, chairman of the No on 1/Stop the Scam campaign, was speaking to the Sanford Springvale Rotary Club about the referendum.
The audience was mostly on the same page — with a number of people voicing dismay at the prospect of a new tax.
“Question l really, really a bad deal for the state of Maine,” Auger said. “We’re opposed, not just because we don’t think this is the right plan, but (because of) the brutal effect on the economy.”
Mike Tipping, communications director for Maine People’s Alliance, which launched and supports the citizen’s initiative question, said the opposition is wrong and outlined how he says the tax, which would fund the new program, would be imposed.
The 3.8 percent payroll tax that would be applied to individuals earning more than $128,400 annually would be shared by the employer and employee, each paying 1.9 percent, said Tipping. He said the $128,400 figure is the salary threshold above which people do not pay social security taxes. Those with unearned income above $128,400 would pay 3.8 percent.
Voters Nov. 6 will be asked: “Do you want to create the Universal Home Care Program to provide home-based assistance to people with disabilities and senior citizens, regardless of income, funded by a new 3.8% tax on individuals and families with Maine wage and adjusted gross income above the amount subject to Social Security taxes, which is $128,400 in 2018?”
Auger, who has been making the rounds of rotary clubs and other groups throughout the state, said the tax would be the highest in Maine history and would apply to family incomes, as well as “Mom and Pop “ businesses.
Auger also asserted that consumers would be required to give up their private health information — though Tipping disagrees — among other points.
“Millionaires could be eligible,” for the program, Auger asserted.
Tipping, reached Friday by phone, said the opposition has been busy.
“They can claim whatever they want and we have to spend time knocking it down,” said Tipping.
Maine is the oldest state in the nation , Tipping said, and added that those currently engaged in supplying services to Maine’s elderly and disabled residents earn what he called poverty wages — a little over minimum wage.
The turnover rate for home care workers is 67 percent annually, Tipping said.
The Home Care and Hospice Alliance has been fighting to increase reimbursement rates, Auger said. He told Rotarians that $16 million over the past four or five years has gone to bump up worker pay.
— Senior Staff Writer Tammy Wells can be contacted at 324-4444 (local call in Sanford) or 282-1535, ext. 327 or twells@journaltribune.com.
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