Phil Harriman- Segments 3 & 4

You've counted on Inside Maine for over 20 years for smart political talk and real conversations with the state's leaders on 985 FM, AM 560, and WGAN.com. Good morning. It is 1112. We're broadcasting live from the studios here in South Portland, Maine. It is Inside Maine. I'll be here till 1 o'clock. We would welcome your thoughts and comments of the topics of the day. All you have to do is dial 879.9426-879. W-G-A-N will get you to the executive producer, Jeremy, who will clear you through our... complicated security system. As we could tell from the last segment. We just got done with an interesting conversation with Dave Ede from WGME, Channel 13 and Fox 23. He's been the iconic sports broadcaster there for, gosh, I bet 30 years. He's working on a very interesting assignment, celebrating Maine's historical journey. as we celebrate the 250th anniversary of the signing of the Declaration of Independence. If you didn't get a chance to listen to that story, that segment, and hear his stories, you can go on to our website, WGAN.com. Click on Inside Main, which is on the menu on the left side of the page, and it'll come up with all of the topics that we have. discussed with Dave. So I want to transition now to the legislature just jammed through late at night with the governor's wink wink nod nod. I'll sign it the so-called millionaires tax. And I want to start the conversation by sharing with you a comment by Jasmine Lane, who is a political commentator. And she writes, tax the rich sounds amazing, especially when you're frustrated, stuck, and watching other people get ahead. It feels fair. It feels justified. It feels like finally someone else is going to pay. But there's a problem. The people you want to tax harder are the same ones holding up the entire system. They build the companies. They hire the workers. They fund the growth. They carry a disproportionate share of the tax burden that keeps government programs running. And when you go after them, they don't stay out of loyalty. They don't stick around to be punished. They leave. Take the jobs, take the capital, take the opportunity with them. And then what? You didn't build an economy, you built a dependency. One that made it look like things were working while quietly relying on a shrinking group of people to hold it all together. And when they leave, you're not redistributing wealth anymore. You're managing decline.

And I thought that was an apt description of the impact that we're going to see as other states who have implemented the so-called millionaires tax are already experiencing. And that is the people who have mobility got the message and they will vote with their feet. Which leads me to enter the discussion that I had with a reporter earlier this week from the Wall Street Journal. And she reached out to me because in my professional life, I work in the financial services profession. I've worked most of my career with family-held businesses that are at this point in their careers. Many of them are... transitioning and are either preparing their business to be sold to an outside entity or they will be hopefully transferring their business to the next generation. And the reporter was looking for me to introduce her to people who are impacted by this and indeed I reached out to a few. And as you might appreciate, they were unwilling, reluctant to put their personal circumstances out there in the media to be further identified as part of the problem that they don't so-called pay their fair share. And as we discussed her article. One of the comments she made to me was really took me aback. She said, aren't there a lot of lumber barons in Maine that are, you know, super wealthy from the forest industry? And I said, and I won't go down too far this trail that we discuss, and I pointed out to her, and we'll talk a little bit more about this in the program, what has happened to the forest products industry over the last 20 or so years, and the so-called lumber barons of the day decades ago are no longer. And she was really kind of... surprised to hear that and it made me realize that most people from afar they look at Maine and they think of you know the forest they think of the ocean maybe they think of the blueberries the the potatoes but they don't see the heart and soul of Maine's economy which is traditionally small businesses not not the You know, the huge international companies like National Semiconductor and Wex and Idex, all companies that have built a fine reputation here in Maine. But they are truly the exception. The rule is these are primarily family-held businesses that are run by people who took the risk.

and spent the time, overcome the obstacles, paid off their debts as best as they could, and met payroll, and believed in tomorrow. And at some point, things turned the corner and they could see that this venture, this risk-taking was going to be well worth it. So I think of one client who recently, after 20 years of building a service business, got to the point where it was clear that if he was going to continue to grow, they were going to have to scale and invest tremendous amounts of capital to keep up with the ever-growing technology influence on the services profession. Think of lawyers, accountants, engineers, architects, etc. So he had an opportunity to sell his business into a larger entity from out of state. And lo and behold, the... transaction occurred, and there was a one-time windfall, one time, that is going to put him in this millionaire's tax bracket. Imagine the frustration of spending 20 years building something only to find when you finally can claim, I crossed the finish line and I got the checkered flag, and Augusta says, and oh, by the way, We need you to send us another $20,000. I think of another one that's a family-held business that's got locations, I would say, a dozen, maybe more, where each little individual operation is profitable, successful, and collectively... the company falls into that new tax. And he said to me, geez Phil, you know, I leave most of that money in the business. I get taxed personally on these dollars, but I don't take them home and create a more, you know, care-free, worry-free, financial, you know, irrelevant lifestyle, I leave it in the business. Why? Because I need to pay down debts. I need to deal with the new 1% payroll tax on this new family medical leave business. I have to be aware that, you know, cash flow may be disrupted. And so the notion that the so-called millionaires are just scooping money and taking it home and, you know, let the main economy worry about the rest of it. But perhaps the most poignant one was one who reached out to me. And I'll just read paraphrasing what he said.

Well, the Maine Democrats have done it again in this just concluded legislative session. They spent more than they should, weakened Maine state government's balance sheet, and further eroded incentives for the private sector or successful Maine families who take the risk to invest from feeling they can be fairly treated by these politicians. I'm old enough to remember 30 years ago when our President Congressional District Congresswoman stated on the floor of the main Senate during a budget debate that, quote, there is no general fund surplus when there are so many unmet needs, end quote. That was an absurd statement then, and it seems to be a unanimous Democratic caucus position now. Fiscal restrained discipline? Apparently, that's not how you win election these days. Instead, like the U.S. Congress and the states like California, Massachusetts, you do what you want because you believe that you can. And Maine suffers as a result. The grab for more and more money from we the main citizens will ultimately lead to more tax increases because, again, there are so many unmet needs. But I'd really like to give a different opinion on the so-called millionaire's tax. Comments made in committee and on the floor discussions by supporters of this new policy imply or state outright, that they think this is not only good fiscal policy, but a moral imperative. Too many Maine legislators will never come close to earning that kind of money, largely because so-called success in the political arena rarely means success in the real world. And the tiny minority of Mainers who earn that income are an easy target. He goes on to write, let me make sure I get this properly quoted. He goes on to write the, here it is, I went back to my taxable income for the last five years. In three of those years, I would have had to pay the 2% tax if it was enacted. I've been well compensated via my salary and bonuses in the private sector. But I was in an equity position, meaning he had what he was able to achieve at risk if it wasn't successful. He goes on to say, I've heard the discussion from both sides of the issue. The Democrats assert that the new percent, 2 percent tax is a fairness issue and that Maynors won't really move away as a result of this implementation. And the opponents, the minority Republicans, assert that many in this class will move to Florida or New Hampshire or Tennessee to avoid the tax just has been seen in other states. Going back to his income, he said, I've been well compensated, but I've taken the risk.

I held various positions in companies that boosted me into the millionaire's tax range as I sold those equity positions. I took the risk of investing in companies, and as I harvested capital gains, those amounts are what put me in the new Democrats' new hated class of millionaires. Fortunately, he writes, fortunately... Governor Mills objected to this tax up until this year. Now I'm in a position where I need to stay here, but my $150,000 to $150,000 of general contributions to charities will have to be diminished to make up for this new tax. Augustus seems to think that we live in a static world where their assumptions are the only correct ones. They are about to find out that those they targeted do have other options. What do you think? We'll take your calls when we come back. You're listening to Inside Maine with Phil Harriman. Tony Randazzo is standing by in the WGAN Newsroom and then we'll be back taking your calls. Thanks for listening to Inside Maine with Phil Harriman. For over two decades inside Maine has been your trusted source for political analysis and candid conversations with Maine's most influential leaders, bringing you the issues that matter most straight from the experts on 985 FM, AM 560 and WGAN.com. I just have to let that music play out a little bit, Jeremy. That's fine. That's good music. Good morning, everyone. You're listening to Inside Maine. I'm your host today. Phil Harriman. We'll be here till 1 o'clock. I'd love to have you join us at 879-9-2426, 879 W-G-A-N. Jeremy, the executive producer extraordinaire, will clear you through customs. and welcome you onto the air. So I have been filibustering, admittedly, for the first part of the program. The rest of the program is going to be driven by our listeners. Let's go to South Portland and welcome Nancy, who is patiently waited through my rant and rave about the millionaires' tax, the weather, the news, the commercials. Nancy, thanks for waiting. The floor is yours. Hi, Phil. I just, the piece that you read that you quoted from really Segways in what I was going to say, which is I don't, and I'm sure you are familiar because of the business you're in, but people don't think about what the more affluent people that they want to tax extra, what they donate to the community and various programs. that we find very important, you know, theater and the Portland Symphony and sports programs and, you know, I'm sure there's a whole list. And people don't think about that, you know, and the loss that could happen from those kind of things, too. Well, and I just wanted to point that out. Yeah, I mean, thank you for magnifying that because...

Clients of mine, hundreds and hundreds and hundreds of the clients, they're not all in the income bracket that we're talking about, but I would say in general, they tend to be the more philanthropic. They are willing to donate to their universities and research facilities, and they are very generous with their money. But when this... what I might call an involuntary charitable contribution in the form of a new tax, it's like, wait a minute, I'm already paying my fair share. I'm already donating to the quality of life and the nonprofits in our communities. Why do you have to come after me? Why don't we have more millionaires paying the existing tax rate? Exactly, and it really has her own for me. However long ago it was when the city said they couldn't afford to do the 4th of July. Oh, I remember that, yes. And the next year, it went on because various businesses came forward and supported it. And the reaction by elected officials isn't, oh, how generous, wonderful that we can keep this tradition going. They look at it and go, oh, well, obviously they've got more money than they need, so we'll just go tax them. I know. Well, I just wanted to point that. I appreciate it, Nancy. Thank you so much. Have a good day, Phil. You too. You're listening to Inside Maine with Phil Harriman. 879-9-26-879 W-G-A-N. Our friend Bob is in Portland standing by. Hi, Bob. You're doing, Phil. How's it going? You know, the only thing missing. Oh, go ahead. Fair to partly sunny right now. That's how well it's going. I see the sun is out. I'm going to have to go outside real soon. Not until after 1 o'clock. The first thing missing from these Democrat talking points, always, always, always is the truth. They have no truth in them. This governor, there is an announce of truth in her. She said Trump is taking a wrecking ball to our economy. What the hell has she been doing for over seven years? What the hell has she been doing? So everything's free here in Maine. We're going to give free college education to people. Well, if that's the case, we've got all this extra money, why are we raising taxes again? Again. Bob, do you know how many people who go to the free community college leave with a degree?

Isn't that shocking? The Persians want the Persians back. Isn't that wonderful? They're going to kick out the Arabs. They're going to burn every mosque, every IRCG building. They're doing it now. They don't need our troops. Let's give them the guns and the weapons they need. But the king is coming back to Iran. The people have called him back. We might actually see peace in the Middle East in our lifetime, Bob. We're going to see peace, and we're going to gain a friend who's been gone for 47 years. The Republic has been at war with us for 47 years. That war is ending in 2026. Wow. Who would have thought? It is. It is. It's wonderful. It's wonderful for our country. It's wonderful for the world. Let's do it. Oh, my God. I just hope that all of the, I just hope that what you and I are visualizing in our mind comes to life in reality. That would be a whole new world. Well, it's amazing when people talk to one another, how they can solve problems very simply, just by communicating. Isn't it wonderful? We're communicating now, and we're going to change the world. Wow. You make me feel very powerful. Well, you know, I'm old. So am I. Bob, thanks for the call. As always, you appreciate you joining us. We're going to stay in Portland and welcome Al to the program. Hi, Al. Good morning. Boy, it's hard to follow Bob. Boy, that was a good call. Yeah. I called about the 2% tax on the wealthy. I have a baby brother that is really a lefty. You don't like Janet Mills. Well, she got that 2% of rich people, you know. And I tried to explain to him. See, I sound like a Republican. I've been listening to a lot of talk radio. But, you know, they're going to leave. I told my baby brother, I said, that's not going to do what they think it's going to do. They have mobility because they have, you know, assets, and they're going to move. They're going to flee. Well, you know, there's a good example of the governor of New York, Kathy Hochul, who basically said when Trump decided that he was going to change his residency to Florida, she basically said, good, you know, all you people, just head down to Palm Beach. In the last month, she's back in front of the microphones pleading with successful people to come back to New York. Why? To support our generous welfare programs. Yeah. Yeah, you know, you know, uh...

I would have been much happier if Janet Mills would have followed the big beautiful bill or whatever you call. And given that no tax on overtime and no tax on fits. And who are the people that that impacts the most? The people who are working with their hands, working on their feet all day long? Right. You know, when I was working construction, I'm 70, over 70 now I'm out of the work for it. But, boy, what a shot in the arm that would have been to be able to work, you know, when I was working construction 60 hours a week. Boy, what a shot in the arm that would be, you know, to have no tax on the open. And what would you have done with that money? You maybe bought, you know, a nicer car or bought some... you know, new tools or taking your family out to dinner? And what does that do? It generates more economic activity, generates sales tax, et cetera. Before I go, is that Maine is missing out. I can't get off the radio without having something in there about cannabis. We're missing out on the cannabis tourism industry. This can be a big boom for the state. We need, you know, places that are cannabis-friendly. See, the biggest problem here, I love the legal recreational pot. It's tested. It's just, it's great. The price is reasonable. The only problem we have in Maine is that we have no place to go consume the product. They don't want you to smoke it in your apartment. They're all smoke-free of anything. If God, there's a bar here. I live in the old fort. There's a bar every 15 feet. But all the... Oh, we can't have cannabis social clubs. Just hire you, you know, come unraveled. It's ridiculous. It sounds like your new entrepreneurial endeavor, Al. Oh, God. Boy, there's some money to be made. Boy, you know, if the government would get out of the way, the Republicans always say. Yeah. But coming up on. 24 years without a drink. Oh, good for you. You should be very proud of yourself. I'll tell you what. I don't want to throw any stones in anybody, but the competition there on WLOB, I don't want to throw any stones. I don't like that, period. You know, 24 years without a drink. I'll tell you what, if you had known me, Phil, when I was on the street in the gutter. literally in the gutter. I would wake up in the ditch. And weed has never done any of that. So peace, pot, and prosperity to all. I want to say...

Hello to all my fellow stoners on Monday, enjoy yourself, do it responsibly, and light up and enjoy it. Have a great day. Bye, Al. I love it. Let's go to Hapswell, welcome our roving reporter to the program. Mike, welcome to the program. I thought it was Peacot and Microdot. He forgot Microdot this time. You got to love L. He's good man. I'm glad to see his change his life. Yeah, he is a... If you notice, the president today signed executive orders that they can start using psychedelic drugs for PTSD. I did see that, yeah. Yeah, so, you know, they're starting to pay attention to what... I think Robert F. Kennedy Jr.'s the one that opens itself the biggest, you know? And so we'll see how it goes. So part of testing has been pretty good. So, look, I heard your guest on earlier talking about the history of Maine. And, you know, I had, I stumbled in to something. It just sold my bar, and was Cassett. And a good friend of mine, he'd just purchased the Harriet Beecher Stouthouse. And he called me and said, you want to give me a hand getting this place on its feet? And I said, yeah, I said, I got time. And I ended up being there for four years, managing the place. But what an amazing history, you know. You know, she had criticized Lincoln, or were we in the water. Right. But, you know, she had changed. Didn't he, didn't he say to her, so you're the little woman who started this big war? He said, is this the little woman who made this great war? Oh, yeah, yeah. Yeah. But she had criticized him early in a civil war, but she had changed her view of him after she met him in 1862. And what I had was, of course, we had a lounger, you know. And so at night, I had a professor from Bowdoin that came in, have a couple of scotches at night. So we got talking about Harriet Beecher, and he said, I got some of her memoirs over there at the college. I said, oh, you do? So there's how many more scotches is this going to cost me? So anyway, she brought me over some of her papers. And I actually sat up in the room where she wrote Uncle Tom's cabin, three to memoirs. You talk about giving you chills. And the window from the room overlooked Bowden College, looks right directly at it. Because her husband was a professor at Bowden, and she used to be able to watch him come and go from Bowden. But there was another little secret to the snow house, too. Down in the cellar of the stowhouse, there's a blocked off tunnel that used to be part of the Underground Railroad that went to Canada for the slaves. And it's been blocked off now for years. But it went underneath Federal Street in Brunswick out under and came up in the woods where they could hustle them up to Canada to the slaves and get them to freedom. And if you read...

her book, Men of Our Times, she made a statement about Lincoln that said, probably no ruler ever made a more profoundly impression on the mind of the world than Lincoln. And it's a pretty amazing book. I read it, too. It's pretty great. So a little part of history of Maine. A lot of people don't know. Yeah, thank you for sharing that. My buddy sold the plate. Bowden College wanted it the worst way because we had a whole lot back where they could put the students in. Yeah. So he ended up selling it to Bowdoin College. So they've changed it all around. You know, we used to have it where the guest would come in and we had a library there where they could read her writings. That's all gone, though. I don't know why the hell they'd changed that. That's too bad. I remember going there as a kid, and it was pretty, you could just tell you were in a piece of American history. Yeah, you can feel the history when you're in there. Yes. And, yeah, so they've changed it around. And, you know, that's a national historic site. Yes. So, you know, even when he, when my buddy owned a place, I don't care if we wanted to change a stone on that building. We had to have it a brute. The National Antiquities Commission and all that because it's a national historic site. So my buddy didn't realize that. Yeah. You know what I mean? So, you know, he said, we need to remodel this. I said, let me, I don't think you're going to remodel nothing. You understand? So, but it was a, it was really a great piece of history to, you know, fall into. Yeah. Thanks for sharing that, Mike. Appreciate your call. You're listening to Inside Main with Phil Harriman. If you'd like to join us, the number is 879-9426, 879 W-G-A-N. I see our friend and Kenny Buck Scott on the line and another call or two coming in. I'm not going to give you a short opportunity to speak. I'm going to hold you over, Scott, if you don't mind, to the next segment. We were talking earlier with Dave Ede, who's doing a story, an ongoing series of Maine's historical moments as we celebrate the 250th anniversary of the signing of the Declaration of Independence. If you have some story ideas, we'd love to hear him. I know Dave has got a bunch in the queue, but has room for others. Fascinating look through Maine's journey since our independence. It's Inside Maine with Phil Harriman. Tony Randazzal was standing by with the latest news, and then we'll take your calls.