Maine Must Chip Away at Granite State’s Advantage
From the issues that birthed the United States to the proliferation of tax reform think tanks and taxpayer advocacy groups, the unpopularity of taxes is undeniable. Protests and white papers, however, are not the only measure by which distaste for taxes can be measured. Taxpayers, both wealthy and economically depressed, are savvy, reacting to opportunities and state fiscal policy with great consistency.
When faced with high taxes in one state, they will choose to move to another, often revealing their preference for lower taxes by their choice of new home state. While Maine is moving in the right direction, the “New Hampshire Advantage” persists, as reflected in a recent report in the Bangor Daily News.
New Hampshire, simply put, is outperforming Maine. From 2014 to 2015, the rate of growth in personal income was smaller in Maine than in New Hampshire. According to the above-referenced report, the average income of an individual among the Granite State’s top one percent is just shy of $1.2 million. Maine, on the other hand, falls into the bottom half of the country at $700,000. New Hampshire’s unemployment is also smaller than Maine’s. Maine’s gross state product grew a mere 1.3 percent in 2015, well below that of New Hampshire’s.
Horvath, Joe (2016, June 30). Maine Must Chip Away at Granite State’s Advantage. Maine Wire. Retrieved from http://www.themainewire.com/2016/06/maine-chip-granite-states-advantage.