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AUGUSTA, Maine Efforts to transform Maine's tax code have failed time and again. But with tax overhaul proposals from both parties now on the table, 2015 could be the year that Democrats and Republicans finally agree to at least some significant changes, which would have a big impact on residents' wallets.

"I think this is a tremendous opportunity," said Dick Woodbury, an economist and former independent senator who spearheaded a 2013 tax overhaul effort that failed. "To have the governor taking a strong role in proposing an initial plan and Democrats as a party advance a plan that is also quite comprehensive seems to me like a great setting for really accomplishing something significant."

Republican Gov. Paul LePage's tax plan, which is part of his more than $6 billion budget proposal, and the one released Thursday by Democratic lawmakers differ in many ways. But there is one key area on which both the governor and Democrats agree: The sales tax base should be expanded shifting more of the burden onto out-of-state visitors to help pay for tax relief for Maine residents.

"Now we've got both major parties debating not whether to give tax cuts but to who and how large the tax cuts should be," said Lance Dutson, a Republican political strategist.

That's giving hope to those who have long advocated for such changes that they may finally come to fruition. But big obstacles remain and major differences need to be worked out before the two sides can craft a final budget by June 30 to prevent a government shutdown.

LePage and many Republican lawmakers want to aggressively cut the individual and corporate income tax and eliminate the estate tax to make Maine more attractive to businesses and wealthy retirees.

Democrats agree with LePage that the sales tax base should be expanded to include things like amusement parks, which supporters say will collect more revenue from tourists. They also agree that the income tax should be lowered, but not for the highest earners and not for corporations. They want the focus to be on reducing the property tax burden and cutting income taxes for low- and middle-income residents.

Dutson said he believes that Democrats will have a hard time "wrestling the microphone away from the right side of the aisle" and gaining traction for their policies because they waited nearly three months to unveil a competing tax plan. In the meantime, LePage has been aggressively promoting his proposal at forums across the state.

Democrats plan to hold similar town hall meetings and say residents will see that their plan is clearly a better deal for working-class families when they understand the details of their proposal.

"The choice is very clear to us because we think that it is the right thing to do and we believe that it is the right approach to growing our economy," Democratic House Speaker Mark Eves said Thursday.

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LePage and Democrats agree: Maine tax system needs overhaul

By Emma Dumain Posted at 3:50 a.m. on April 10

The White House wants House members like Israel to get behind the Iran nuclear deal. (Tom Williams/CQ Roll Call File Photo)

House Democrats on the fence about the White Houses proposed nuclear deal with Iran will be asked next week to close ranks and get behind the president.

With the House and Senate getting back to work on April 13 after a two-week recess, most of the legislative action is set to be in the Senate, where the Foreign Relations Committee will begin marking up its bill giving Congress power to override President Barack Obamas emerging deal to disarm Iran.

But Speaker John A. Boehner, R-Ohio, has made it clear that, short of the White Housedramatically changing course, he would support the House acting on similar legislation, perhaps even taking up the Senates product (assuming it passes).

It means a large number of House Democrats will, sooner ratherthan later, have to decide to whom they owe the most loyalty: their president, who opposes congressional action he says will undermine administration-level negotiations and diplomacy; or Israel, an important ally that could be inherentlythreatened by an Iran with nuclearcapabilities.

Obama administration officials are set to begin acharm offensive tour next week, aimed at talking Republicans down from seeking to override the emerging dealand convincing wavering Democratsto get on their side.

On April 13 at 5 p.m., Secretary of State John Kerry, Energy Secretary Ernest J. Moniz and Treasury Secretary Jacob J.Lew, among others, will be on Capitol Hill to provide House lawmakers in both parties aclassified briefing on the so-called P5+1 agreement, which would facilitate the nuclear disarmament of Iran over a 15-year period and must be signed off on by the end of June.

At House Democrats regularly scheduled Tuesday caucus meeting, Kerry and Monizare slatedto make a repeat appearance.

Some House Democrats have already started drawing lines in the sand, with senior lawmakers positionslikely to influence some undecideds.

See more here:
House Democrats Forced to Choose Sides in Iran Debate

With a leadership transition on the horizon on Capitol Hill and President Obama entering his final two years in office, cracks are beginning to show in the Democratic Party.

Most recently, two House Democrats spoke out against their longtime and powerful leader, Nancy Pelosi.

Massachusetts Democratic Rep. Stephen Lynch said on WGBHs Greater Bostonthat its time for the House Democratic leader to step aside.

"Nancy Pelosi is not going to lead the Democrats back into the majority," Lynch said.

Fellow Massachusetts Rep. Michael Capuano, who led Pelosis transition in 2006 when she was elected speaker, said on the same program that she should leave leadership or change her approach.

"I think we need leadership that understands that, if something you're doing is not working ... change what you're doing," Capuano said.

Capuano later clarified, saying: Any leader who refuses to change in the face of failure should step aside. I believe, however, that Nancy Pelosi is making the changes necessary to lead House Democrats back to electoral success, and I still believe she will do so.

Still, both lawmakers had supported Pelosi for the post in January, despite her presiding over significant party losses in the midterms.

In another sign of internal frustration in the party, freshman Rep. Seth Moulton, D-Mass., is now calling for lawmakers to hold elections to determine committee chairs instead of following a seniority-based process.

Former Indiana Democratic Sen. Evan Bayh told Fox News the developments indicate frustration because they're in the minority, a substantial minority, and you just can't get much done usually in that situation so that's kind of bubbling up.

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DIVIDED DEMOCRATS Jabs at Pelosi latest sign of friction in party ranks

ANNAPOLIS, Md. (AP) Maryland Democrats on a budget negotiating team agreed Friday on some measures they hope will encourage Republican Gov. Larry Hogan to support added money for education and break a standoff on the states $40 billion budget.

House and Senate negotiators reconciled budget differences between the two houses of the Democratic-led Legislature, with some incentives they hope will find favor with the governor, who ultimately will need to approve Democratic priorities of added funding for education and a 2 percent cost-of-living adjustment for state employees.

Its more than a gesture, said Del. Maggie McIntosh, D-Baltimore. We really are acting in very good faith.

The panel agreed to provide about $7.5 million in state aid for private schools. Of that, $4 million would go toward textbooks and technology, and $3.5 million would be allocated for capital projects for aging schools. Its a compromise to Hogans proposal to provide $5 million in tax credits for businesses that provide financial support for private school students a proposal that has met stiff resistance in the House.

They also agreed to directing additional money to shore up the pension system, after Hogan criticized a proposal to tap $75 million of a $150 million extra payment initially planned for the underfunded pension system. To make up for it, the panel decided to steer half of any fund balance above than $10 million to the pension system, though it would be capped at $50 million.

Hogan and the Legislature have been sparring over whether to restore about $202 million to education, state employee pay and Medicaid that Hogan initially trimmed from his budget plan in January to help address a $750 million deficit and finally address a structural deficit.

It was unclear whether Hogan or Republicans on the panel would approve of the changes.

Republican members are thinking, Sen. George Edwards, a Garrett County Republican who is on the conference committee, said. Ill leave it at that right now.

The committee also agreed to put the 2 percent cost-of-living adjustment for state employees into their base salaries. The governor would either spend money set aside by the Legislature to pay for it or use furloughs to make up the money.

House Democrats also passed some of Hogans scaled-back legislative initiatives. A measure to expand charter schools, though heavily rewritten by the Senate, was approved by a House committee Friday. A House committee also passed a pared-back bill to provide some tax relief on military retirement pensions. A measure to end state-mandated stormwater management fees also cleared a House committee.

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Md. Democrats Make Overture To Governor On Budget

ANNAPOLIS, Md. (AP) Maryland Democrats and Republicans remained mired in political gamesmanship Friday, with the GOP criticizing Democrats for not acting on Gov. Larry Hogans revised budget plans and Democrats saying the Republican governors plans undermine bipartisan budget legislation already approved by the Legislature.

Squabbling in Marylands budget standoff persisted as lawmakers faced a midnight Monday deadline, when the 90 day legislative session is scheduled to end. The session could be extended 10 days to focus exclusively on the budget.

Republicans in the House of Delegates criticized Democrats who control the chamber for not bringing two of Hogans supplemental budgets before lawmakers to consider. One of them adds money for the governors tax-relief measures, which have not been acted on in the House. The other, released Thursday, restores $75 million in an extra payment to shore up the states pension system.

If any of us were to introduce legislation and it not be given the proper due process, hey, thats insulting, said Del. Nic Kipke, a Republican from Anne Arundel County who is the House minority leader. And my concern is that while some may not approve or support entirely aspects of the supplemental, isnt it the right thing to do to allow the process to continue?

But Democrats contend the governors recent proposals undermine budget legislation that was approved 129-10 in the House and 46-0 in the Senate.

Its supplemental budgets No. 2 and 3, that I would suggest, those supplemental budgets actually undermine the process, said Del. Bill Frick, D-Montgomery.

The governor, who has strong budget authority in Maryland, submits supplemental budgets to appropriate new spending. They enabled the governor to correct errors or omissions in his initial budget plan.

But Democrats argued that Hogans supplemental budgets themselves were flawed, technically as well as politically.

Del. Maggie McIntosh, a Baltimore Democrat who heads the House Appropriations Committee, said a $5 million provision in Hogans second supplemental budget relies on money in the states Cigarette Restitution Fund, but she said there isnt $5 million in the fund to pay for it.

So theres a problem with that supplemental budget, she said.

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Md. Democrats And Republicans Continue Budget Brinksmanship