Letter to Maine GOP

Here's what I wrote to the Maine GOP...lets all get involved in trying to stop this BS from going into effect in January!
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Dear Chairman Webster,

My name is Jason Mancine and I am a professional musician who has worked out of the Farmington area for the past 5 years, and who was born and raised in Franklin County I am writing today to let you know that I share the Maine GOP's concern about the impact that LD 1495 will have on the State of Maine.

As the entertainment industry (among many others) will be negatively impacted by the implementation of this law (specifically, 36 MRSA §1752, sub-§1-J), I am interested in becoming involved in the effort to put this law on the ballot in November.

To be clear on my opinion of this law, in no way do I consider the decrease in income tax rate to be an offset to the new tax levied on entertainment services. Math is math, and 6.5% plus 5% equals 11.5% regardless of who is paying the tax (i.e. the performer or the venue). The bottom line is that the burden will fall back on the performer as the venues adjust their budgets to accommodate this tax. While I am sure the GOP understands the folly of this legislation, let me offer this real world example from the music industry:

A venue that normally hires my band to play for $800 will now be forced to pay $40 in tax. To maintain budget, it is almost certain that the venue would now pay the band $760, and $38 in tax. Sure, there may be exceptions, but knowing the way this industry works I can say with near certainty that when the lost income (due to the venue's increased cost) is factored back into the equation, the effective income tax rate on musicians will be 11.5% as of January 1, 2010.

Simple math...yet something seemingly lost on an out-of-touch legislature and governor faced with ballooning budget shortfalls. Unfortunately, math also tells us that we need 55,000+ signatures (and in a hurry) to get this on the ballot and prevent what is certain to be a fiscal and administrative apocalypse on January 1.

I have already begun a personal campaign to increase awareness of the law, but would also be willing to collect signatures for the petition. As a full-time musical performer, I have the ability to cover a lot of ground and potentially reach hundreds or thousands of people. And so far, with no exceptions, every venue owner, musician, and patron I have talked to is opposed not only to the entertainment provisions of LD 1495, but with the law as a whole. Please let me know what I can do to help bring this legislative travesty to the light of day.

Sincerely,

Jason Mancine
www.mancine.net

New TAX on Music!! PLEASE READ.

Dear Musicians, Venue Owners/Representatives, and Friends,

I am not one to send out mass emails, but I feel compelled to take action to protect my passion and livelihood.

In June, Governor Baldacci signed into law a sweeping tax reform bill that will, among many other things, subject live music to the 5% Maine "Sales and Use tax". I fear that this additional obstacle to running a music business in Maine could be the final nail in the coffin for many professional musicians.

What does a 5% tax mean? Quite simply, it means that anyone who "uses" live music services will now have to pay a 5% of the musician's fee to the State of Maine. So for a $200 performance, the venue will now need to pay an extra $10 to Augusta for "using" the service. But it is the HOW of this tax that is perhaps the bigger burden. It is a logistical nightmare. Does the burden for collecting/paying this tax fall on the venue or the musician? In other words, if a band charges $800 for a performance, do they collect the $40 in tax (as a retailer does) and pay it to the State? Or does the venue now have to itemize and track every performance and pay their "use tax" on a quarterly or annual basis? Either way, we all know that the cost of this tax will eventually shift back to the musician, and it is the working musicians who will suffer.

Remember, this is not something that might happen...this law is passed and goes into effect on January 1, 2010. Don't forget that musicians already pay income taxes (plus self-employment taxes) on their income. This is an indirect additional 5% tax on their income which will put self-employed musicians among the highest taxed individuals in the State, regardless of income level.

In short, this is just another financial and logistical burden for struggling small businesses, and I am certain that it will have a drastic and negative impact on the already floundering music business in Maine. While some argue that the new taxes are offset by an income tax reduction, don't be fooled.

Please take the time to visit the link below and examine the list of services that will be taxed come January, and ask yourself if you think that this will help the business climate in Maine.

http://www.nfib.com/tabid/598/Default.aspx?cmsid=49306&v=1

They include:

Live Music
DJ's
Musical Instrument Repair
Whitewater Rafting
Computer Repair
Whalewatching Cruises
Trolley Rides
Hunting Guides
Dry Cleaning
Car Washing
Meat Cutting (Butchering)
Clowns & Jugglers
and on and on and on

This is not about Republican or Democrat, it is about trying to save live musicians and venues (and other service providers/users) from another financial burden that we simply can not afford.

I urge you to support the "People's Veto" of this legislation. Please use the link below to email Michelle Dale at the Maine Republican Party and ask where you can go to sign a local petition. Or if you prefer, the next link will allow you to contact your legislator directly. With 55,000 signatures, we can put this question on the ballot and see if the people of Maine truly want this new level of taxation.

michelle@mainegop.com

http://www.maine.gov/legis/house/townlist.htm

Thank you,

Jason Mancine