Maine Question 1, Payroll and Non-Wage Income Taxes for Home Care Program Initiative (2018)

Elections in Maine, 2018

• General election: Nov. 6
• Voter registration deadline: Oct. 16, or Nov. 6 (in-person)
• Early voting: When ballots become available through Nov. 1
• Absentee voting deadline: Nov. 6

• Online registration: No
• Same-day registration: Yes
• Voter ID: No
• Poll times: 6:00 a.m. to 8:00 p.m.

---

On the ballot: U.S. Senate • U.S. House • Governor • State executive offices • State Senate • State House • Local judges • State ballot measures • Recalls • Democratic primaries • Republican primaries

Maine Question 1
Election date November 6, 2018
Topic Taxes
Status d Defeated
Type State statute	Origin Citizens
List of Maine measuresMaine Question 1 - JuneMaine Question 1Maine Question 2Maine Question 3Maine Question 4Maine Question 5Submit

Maine Question 1, the Payroll and Non-Wage Income Taxes for Home Care Program Initiative, was on the ballot in Maine as an indirect initiated state statute on November 6, 2018.  It was defeated.

A "yes" vote supported enacting a payroll tax and non-wage income tax to fund a program called the Universal Home Care Program.

A "no" vote opposed enacting a payroll tax and non-wage income tax to fund a program called the Universal Home Care Program.

Election results

Maine Question 1
Result		Votes	Percentage
Yes		235,679	37.14%
No		398,819	62.86%

Results are officially certified.

Source

Overview

What would have Question 1 done?

Question 1 would have enacted a payroll tax and non-wage income tax to fund a program called the Universal Home Care Program. The Universal Home Care Program was designed to provide long-term healthcare and social services to adults 65 years of age or older or with physical or mental disabilities in their homes at no costs to the individuals or their families. Providers that receive funds from the program would have been required to spend at least 77 percent of the funds on worker costs under the initiative.

The Universal Home Care Program would have been funded through a 1.9 percent payroll tax on employers on income paid to an employee above Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) contribution and benefits base and a 1.9 percent payroll tax on employees' income above the OASDI base—for a total payroll tax of 3.8 percent. The measure would have also enacted a 3.8 percent tax on non-wage income, such as stock dividends and interest, above the OASDI base, with a reduction for the payroll tax amount paid. In 2018, the OASDI base was $128,400. As of 2018, income above the OASDI base of $128,400 is exempt from the federal payroll tax for Social Security.

Question 1 would have established a Universal Home Care Trust Fund Board to oversee and manage funds for the program. The board would have been composed of nine members, including (a) three members who represent personal care agencies; (b) three members who are providers of in-home care services and employees of care services; (c) three members who are receiving in-home care services or are family members of individuals receiving in-home care services.

The board would have been prohibited from taking income into account in determining who receives in-home care services as part of the program. However, Question 1 would have permitted the board to create waiting lists of eligible persons if demand exceeds the board's ability to provide meaningful benefits to eligible persons, according to the initiative’s language.

Who supported and opposed Question 1?

Mainers for Homecare led the campaign in support of Question 1. There were two additional ballot question committees registered in support of the initiative. Together, the supporting committees raised $2.20 million. The largest contributor to the supporting committees was the Service Employees International Union, which contributed $361,499. No on Question One led the campaign in opposition to Question 1. The committee raised $1.37 million. The largest contributor to the opposition was the Maine Association of Realtors, which contributed $100,000.

Text of measure

Ballot question

The official ballot question was as follows:

“

Do you want to create the Universal Home Care Program to provide home-based assistance to people with disabilities and senior citizens, regardless of income, funded by a new 3.8% tax on individuals and families with Maine wage and adjusted gross income above the amount subject to Social Security taxes, which is $128,400 in 2018?

”

Full text

The full text of the measure is available here.

Readability score

See also: Ballot measure readability scores, 2018

Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The secretary of state wrote the ballot language for this measure. The FKGL for the ballot title is grade level 25, and the FRE is 8. The word count for the ballot title is 53, and the estimated reading time is 14 seconds. In 2018, for the 167 statewide measures on the ballot, the average ballot title or question was written at a level appropriate for those with between 19 and 20 years of U.S. formal education (graduate school-level of education), according to the FKGL formula. Read Ballotpedia's entire 2018 ballot language readability report here.

Support

Yes on 1 - Mainers for Homecare led the campaign in support of the measure. The Maine People's Alliance led the petition drive for the ballot initiative.

Supporters

Organizations

• Maine People's Resource Center
• Maine People's Alliance
• Open Society Policy Center

Unions

• Service Employees International Union

Arguments

• Ben Chin, political engagement director for the Maine People's Alliance, said, "Every day, families across Maine are stuck facing the incredible stress of choosing between spending down their life’s savings on care for aging family members, quitting their job to provide that care themselves, or simply letting family members suffer without the care they need."
• Mike Tipping, a spokesperson for the Maine People's Alliance, stated, "There are tens of thousand of people in Maine right now who require in-home care and aren’t able to access it. Too many Mainers are forced to quit their job to provide care or to let their loved ones suffer or send them to a facility where they don’t want to be. This would attempt to address that."
• Gary Dawbin, a petitioner for the ballot initiative, said, "For me it’s really personal. I’ve seen veterans, people who fought for this country, not be able to get the care they need, and I have two kids with disabilities that need care. Having home care available for everyone would make a huge difference for me and for just about every family in Maine."

Opposition

No on Question One, also known as Stop the Scam, led the campaign in opposition to the ballot initiative.

Opponents

• Maine Association of Realtors
• Maine Bankers Association
• Home Care & Hospice Alliance of Maine
• Maine Hospital Association
• Maine State Chamber of Commerce

Arguments

• Jason Savage, executive director of the Maine Republican Party, said, "It’s a horrible idea to continue trying to raise taxes to pay for these things because it’s making Maine a more and more hostile environment for professionals and businesses. It’s like they’re trying to turn Maine into an economic wasteland. If people feel it’s important, we should find a way to support this in the state budget."
• Dana Connors, president of the Maine Chamber of Commerce, stated, "The impact of yet another proposed surtax on individuals and businesses — with an even lower income threshold than what the Maine Legislature wisely repealed over the summer — will make it harder for Maine to do business, compete and grow our economy."
• Jacob Posik, policy analyst for Maine Heritage Policy Center, said, "This initiative would be devastating for Maine’s small business economy. Sole proprietors who earn over the income threshold subject to social security employment tax will be required to pay both portions of the 1.9 percent taxes included in this initiative, and if they have additional nonwage earnings, they will pay an additional 3.8 percent tax on those earnings come tax season."

Campaign finance

See also: Campaign finance requirements for Maine ballot measures

There were three ballot measure committees raising funds in support of the measure—Maine People's Alliance - BQC, Mainers for Homecare, and The Caring Majority. Together, the committees supporting the initiative received $2.20 million in contributions and spent $2.00 million. The largest contributor to the support committees was the Service Employees International Union (SEIU). The SEIU provided $361,499 in contributions.

There was one ballot measure committee registered in opposition to the measure—No on Question One. The committee raised $1.37 million and expended $1.37 million. The largest contribution came from the Maine Association of Realtors, which provided $100,000.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$1,743,943.43	$454,416.76	$2,198,360.19	$1,548,569.42	$2,002,986.18
Oppose	$1,200,892.00	$165,557.37	$1,366,449.37	$1,200,254.30	$1,365,811.67
Total	$2,944,835.43	$619,974.13	$3,564,809.56	$2,748,823.72	$3,368,797.85

Support

The following table includes contribution and expenditure totals for the committees in support of the measure.

Committees in support of Question 1
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Mainers for Homecare	$1,023,038.59	$394,090.21	$1,417,128.80	$1,021,289.27	$1,415,379.48
Maine People's Alliance - BQC	$648,001.75	$60,326.55	$708,328.30	$461,338.62	$521,665.17
The Caring Majority	$72,903.09	$0.00	$72,903.09	$65,941.53	$65,941.53
Total	$1,743,943.43	$454,416.76	$2,198,360.19	$1,548,569.42	$2,002,986.18

Donors

The following were the donors who contributed $50,000 or more to the support committees:

Donor	Cash	In-kind	Total
SEIU	$300,000.00	$61,499.43	$361,499.43
Maine People's Alliance	$85,000.00	$249,782.17	$334,782.17
Omidyar	$250,000.00	$0.00	$250,000.00
Maine People's Resource Center	$200,000.00	$0.00	$200,000.00
Open Society Policy Center	$200,000.00	$0.00	$200,000.00
Center for Community Change Action PAC	$150,000.00	$0.00	$150,000.00
Sixteen Thirty Fund	$150,000.00	$0.00	$150,000.00
Bend the Arc Jewish Action	$147,903.09	$0.00	$147,903.09
Care in Action	$70,000.00	$0.00	$70,000.00
VOQAL	$50,000.00	$0.00	$50,000.00

Opposition

The following table includes contribution and expenditure totals for the committees in opposition to the initiative.

Committees in opposition to Question 1
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
No on Question One	$1,200,892.00	$165,557.37	$1,366,449.37	$1,200,254.30	$1,365,811.67
Total	$1,200,892.00	$165,557.37	$1,366,449.37	$1,200,254.30	$1,365,811.67

Donors

The following were the donors who contributed $50,000 or more to the opposition committees:

Donor	Cash	In-kind	Total
Maine Association of Realtors	$100,000.00	$0.00	$100,000.00
National Association of Realtors	$45,000.00	$20,000.00	$65,000.00
Maine Hosptial Association	$50,000.00	$5,050.00	$55,050.00
Dorks R Us	$50,000.00	$0.00	$50,000.00
IDEXX Laboratories	$50,000.00	$0.00	$50,000.00
L.L.Bean	$50,000.00	$0.00	$50,000.00
Maine Bankers Association PAC	$50,000.00	$0.00	$50,000.00
MaineHealth	$50,000.00	$0.00	$50,000.00
Maine Real Estate Info. System, Inc.	$50,000.00	$0.00	$50,000.00
WEX, Inc.	$50,000.00	$0.00	$50,000.00

Polls

See also: 2018 ballot measure polls

Maine Question 1 (2018)
Poll	Support	Oppose	Undecided	Margin of error	Sample size
Suffolk University August 2, 2018 - August 8, 2018	51.0%	34.0%	14.0%	+/-4.4	500
Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to editor@ballotpedia.org.

Background

Income taxes in Maine

Maine utilized a personal income tax rate ranging from 5.8 percent to 7.15 percent in 2017. Maine provided a $4,050 personal exemption and a standard deduction ranging from $11,600 to $23,200, depending on tax rate schedule. The table below summarizes personal income tax rates for Maine in 2017:

Personal income tax rates, 2017
Schedule	Brackets			Tax Rates
	Bracket 1 Range	Bracket 2 Range	Bracket 3 Range	Bracket 1 Rate	Bracket 2 Rate	Bracket 3 Rate
Single	< $21,100	$21,100 - $49,999	> $49,999	5.8%	$1,224 plus 6.75% of excess over $21,100	$3,175 plus 7.15% of excess over $50,000
Head of Household	< $31,650	$31,650 - $74,999	> $74,999	5.8%	$1,836 plus 6.75% of excess over $31,650	$4,762 plus 7.15% of excess over $75,000
Married	< $42,250	$31,650 - $99,999	> $99,999	5.8%	$2,451 plus 6.75% of excess over $42,250	$6,349 plus 7.15% of excess over $100,000
Source: Maine Revenue Services, "Individual Income Tax 2017 Rates," accessed January 9, 2018

Social Security OASDI base

The ballot initiative would have enacted a payroll tax on income above Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) contribution and benefits base, which was $128,400 in 2018. The federal payroll tax for Social Security does not, as of 2018, apply to income above $128,400. The OASDI contribution and benefits base is adjusted each year to account for changes in the national average wage index. Between 2000 and 2018, the OASDI contribution and benefits base increased from $76,200 to $128,400—an increase of 68.5 percent.

Maine Question 2 (2016)

See also: Maine Tax on Incomes Exceeding $200,000 for Public Education, Question 2 (2016)

On November 8, 2016, electors in Maine voted on Question 2, which was designed to enact an additional 3 percent surcharge on the portion of household income exceeding $200,000 per year and earmark the revenue for education. Voters approved the initiative 50.63 percent to 49.37 percent. The Maine People's Alliance helped collect signatures and raise funds for Question 2.

Before swearing in members of Maine's 128th Legislature, Gov. Paul LePage (R) urged legislators to amend or repeal Question 2. Lawmakers needed to pass a budget to prevent a possible government shutdown on July 1, 2017. Gov. LePage and legislative Republicans wanted Question 2 repealed. Democrats said that their caucus would not support a repeal of Question 2 unless Republicans proposed an alternative plan for generating the $320 million in revenue for education funding as the surcharge was estimated to generate. Legislators did not come to an agreement before July 1, 2017, leading to a partial government shutdown. On July 4, 2017, leaders of the Maine State Legislature and Gov. LePage negotiated a budget bill that repealed Question 2. The budget earmarked $162 million for public education—about 50 percent of what Question 2 was estimated to bring in.

Path to the ballot

See also: Laws governing the initiative process in Maine

The state process

In Maine, the number of signatures required to qualify an indirect initiated state statute for the ballot is equal to 10 percent of the total votes cast for governor in the most recent gubernatorial election. Petitions can be circulated for up to 18 months, but signatures must be no more than one year old to be valid. Signatures must be filed with the secretary by the 50th day of the first regular legislative session or the 25th day of the second regular session. Maine's initiative process is indirect, which means sufficient initiative petitions first go to the legislature and only go to the ballot if the legislature rejects or does not act on the initiative.

The requirements to get an initiated state statute certified for the 2018 ballot:

• Signatures: 61,123 valid signatures were required.
• Deadline: The deadline to submit signatures was January 29, 2018.

Each petition signature is certified by the local registrar of voters. The signatures are then submitted to the secretary of state. If enough signatures are verified, the initiatives are sent to the legislature. If the legislature approves the initiative, it becomes law. If the legislature does not act on the initiative or rejects it, the initiative goes on the ballot. The legislature may submit "any amended form, substitute, or recommendation" to the people alongside the initiative; this alternative is treated as a competing measure.

Details about the initiative

On October 24, 2017, the initiative petition was approved for signature gathering. The initiative was allowed to circulate through April 24, 2019, which means the measure could have been eligible for either the 2018, 2019, or the 2020 ballot in Maine. Ultimately, it was on the ballot in 2018.

On November 21, 2017, the Associated Press reported that proponents had collected more than 40,000 signatures.

Supporters of the initiative reported filing 67,000 signatures on January 26, 2018. At least 61,123 (91.23 percent) of the signatures needed to be valid.

On February 23, 2018, the secretary of state announced that 64,842 signatures collected for the initiative were valid—3,719 more signatures than were required. As an indirect initiative, the measure was sent to the Maine State Legislature for consideration.

Cost of signature collection:
Sponsors of the measure hired individuals to collect signatures for the petition to qualify this measure for the ballot. A total of $187,088.68 was spent to collect the 61,123 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $3.06.

Legislative action

The indirect initiative was introduced into the Maine State Legislature as Legislative Document 1864 (LD 1864) on March 12, 2018. The Democratic-controlled Maine House of Representatives took up LD 1864 on March 29, 2018, voting 72-70 to indefinitely postpone the bill. The Republican-controlled Maine State Senate passed a motion to insist that the state House address LD 1864 before the legislative session adjourned on April 18, 2018. Most Democrats voted against addressing the bill in the state legislature, whereas most Republicans wanted the bill to go before the State Legislature Taxation Committee. Rep. John L. Martin (D-151) said several recent ballot initiatives did not go before committees. He stated, "Don’t try to say this one is different and therefore it should have a public hearing while the others did not." Rep. Jeff Timberlake (R-75) responded, "Maybe if some of the other referendum questions would have gone (to public hearing) we wouldn’t have been in the predicament we’ve been in for the last two years of working our way through the marijuana bill … and just about every other ballot question that we are still tinkering with today."

On April 13, 2018, LD 1864 was pronounced dead, meaning the legislature did not pass the ballot initiative. The initiative, therefore, was certified to go before voters in November 2018.

See also

2018 measures

• 2018 ballot measures
• Taxes on the ballot
• Welfare on the ballot

Maine

• Maine ballot measures
• Maine ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Maine Questions Appearing on November 6, 2018 Ballot

Support

• Yes on 1 - Mainers for Homecare website
• Yes on 1 - Mainers for Homecare Facebook
• Yes on 1 - Mainers for Homecare Twitter

Opposition

• Stop the Scam - No on Question One website
• Stop the Scam - No on Question One Facebook
• Stop the Scam - No on Question One Twitter
• Stop the Scam - No on Question One Instagram