Welcome Back Tax will Hurt Maine’s Business Climate
The Welcome Back Tax (described here) will hurt Maine’s business climate by increasing the cost to business of finding new workers and new investment.
First, the cost of finding new workers will rise because in order to attract talent “from away” Maine businesses will have to absorb some, if not all, of the Welcome Back Tax. In a perfect world, Maine’s businesses would be able to find all the skilled workers they need right here in Maine. Unfortunately, they cannot. As a result, this tax will put Maine businesses at a disadvantage when seeking out-of-state workers to bring to Maine.
Second, the cost of finding businesses and/or investors “from away” will also become more problematic. A business seeking to expand in Maine will find their rate of return reduced for their non-resident owners. A lower rate of return will force many businesses who would otherwise locate in Maine to look for greener pastures.
In the end, the Welcome Back Tax will mean fewer businesses and fewer jobs for all Mainers.