Maine Coalition Collects Enough Signatures For Ballot Measure On Repealing Beverage Tax Increase That Funds Health Care Program

Main Category: Public Health
Article Date: 21 Jul 2008 - 2:00 PDT

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A coalition that includes the Maine State Chamber of Commerce and beverage distributors on Tuesday submitted more than 90,000 signatures to the secretary of state to qualify a ballot measure that will ask voters to overturn a beverage tax increase used to fund the Dirigo Health program, the Blethen Maine News/Portland Press Herald reports. Of the signatures collected, 74,533 have been certified as valid, which is more than the 55,087 signatures needed to qualify for a referendum (Cover, Blethen Maine News/Portland Press Herald, 7/16).

The state law, signed earlier this year, increases taxes and fees on beer, wine and soda manufacturers. According to a legislative staff analysis, the soft drink tax will generate an estimated $9.2 million for Dirigo Health in fiscal year 2009. The increase in the beer and wine tax will generate an estimated $7.5 million for the program in FY 2009 (Kaiser Daily Health Policy Report, 4/21).

Newell Augur, a beverage industry lobbyist who is leading the coalition, said the group's opposition to the tax "has nothing to do with Dirigo," adding, "This has to do with our tax burden. How Dirigo is funded is a completely separate argument from that." In addition, some small businesses say that they cannot afford the tax.

Supporters of Dirigo Health say that the tax increases, along with an insurance claim fee also imposed by the law, are necessary to continue funding the program, which provides health insurance to about 18,000 uninsured state residents who work at small businesses or are self-employed (Blethen Maine News/Portland Press Herald, 7/16).

Reprinted with kind permission from http://www.kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, or sign up for email delivery at http://www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation.

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