PORTLAND -- The Maine Heritage Policy Center, a non-partisan group that advocates a return to free-market principles to build long-term prosperity in Maine, includes tax burden rankings among many factors when studying the unsustainable levels of government spending in Maine.

On Thursday, the Tax Foundation of Washington, D.C., released a new study and explanation of changes in their formulas that lowered their ranking of Maine's tax burden on residents from #2 to #15 among all states. A large part of the statistical change in their calculations is a result of ignoring the taxes paid by out-of-state property owners. "These taxpayers may live somewhere else, but the taxes are still collected by the state of Maine," notes Scott Moody, chief economist at The Maine Heritage Policy Center.  "These people are long-time Mainers who avoid our high taxes by establishing residency in a state like Florida, with no income tax or estate tax, or out-of-staters with summer homes here."

"No matter where the taxpayers live, these taxes support a state government that is too large and spends too much - crowding out growth in the private sector economy," notes Mr. Moody. "Our research shows that Maine has 23 percent more state employees, compared to the number of private-sector workers, than the U.S. average. Maine state worker compensation is also about $8,400.00 more than the average private-sector employee in Maine. When you also include the fact that Maine is #1 in Medicaid enrollment, with 23 percent of the under-65 population qualifying for this state/federal medical coverage, it is clear that Maine spends too much money."

Mr. Moody adds: "Maine is also a low income state, as shown by our 34th place ranking in per-capita personal income. And more disturbingly, we ranked #41 in the private-sector share of personal income - again showing that the public sector is crowding out the private sector."

"If there is any question that taxes are too high, the number of people permanently leaving Maine has grown to the point that we are now an out-migration state. In the shorter-term, the epidemic of cross-border shopping in tax-free New Hampshire is another indicator of Maine's high taxes. So whether Maine people leave the state permanently, for six months each year or even just a few hours... they are doing what they can to avoid the burden of paying for the unsustainable state spending and taxes."

Please contact The Maine Heritage Policy Center for more information or clarification on this subject. If you would like to arrange an interview with Mr. Moody, please contact Martin Sheehan, director of communications at 207-321-2550 or via email at: msheehan@mainepolicy.org.

The Maine Heritage Policy Center is a 501 (c) 3 nonprofit, nonpartisan research and educational organization based in Portland, Maine. The Maine Heritage Policy Center formulates and promotes free market, conservative public policies in the areas of economic growth, fiscal matters, health care, education, and transparency - providing solutions that will benefit all the people of Maine. Contributions to The Maine Heritage Policy Center are tax deductible to the extent allowed by law.