Why are Maine's Taxes So High?

By Sheldon Bird

Of the 50 U.S. states, it is the 12th-smallest by area, the 9th-least populous, the 13th-least densely populated, and the most rural.

Population 1.4 million. As of 2022 the organized municipalities of Maine consist of 23 cities, 430 towns, and 30 plantations. Collectively these 483 organized municipalities cover less than half of the state's territory.

Each municipality has a government. Services. Schools. Roads. Remarkably inefficient. But when you suggest to small town folks that they should join other towns to save money, they'll run you out on a rail.

When you compare the costs per resident with the newer planned states out west, we're really high. So don't just complain about high taxes. Look at why. The only logical choice is to move out west where things are more efficient.

Comparing us to New Hampshire is a classic "false equivalency" argument. To begin with, although the populations are nearly equal, New Hampshire's land area is 9,350 square miles while Maine's is 35,385 square miles. We are 3.75 times larger in area, with all the roads, wires, etc it takes, but the same number of taxpayers. Would that lead you to believe that even if we were using the same revenue model as New Hampshire, we would pay more overall?

Next, let's consider the number of government entities. NH has 234 municipalities. Maine has 488! That's around twice as many in Maine for the same population as New Hampshire. Each one has its own highway department, select board, fire department, building inspector, etc. etc. Try getting Mainers to give up their towns and consolidate. Can you see how Maine would have a higher tax rate than New Hampshire regardless of the revenue model?

So every political subdivision gets the government that it chooses to have, and there is always a price. If you want things to be a certain way, then you accept the cost of them. If you want things to be different, then you join with your friends and neighbors and try to change things. But you don't sit on the sidelines and bitch about the cost. And there will always be a politician preaching small government and lower taxes, who actually has no intention of making that happen or no idea of why things are how they are, and half the voters will fall for it - having the cake and eating it too.