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EXHIBIT A

ME_TAX_LD1495-R4-20-10
EXH B TAX INCIDENCE
COMBINED INCOME & SALES TAX IMPACT TO MAINE TAXPAYERS

FROM THE "COMBINED INCIDENCE OF TAX REFORM" REPORT PREPARED BY


MAINE REVENUE SERVICES FROM 1/11/10 PRESENTATION TO MECEP

TAXPAYERS TAXPAYERS
WITH INCOME WITH INCOME
ALL OVER $143,103 OVER $316,958
TAXPAYERS & TAX DECREASE & TAX DECREASE
---------------------------- --------------------------- ---------------------------

TOTAL TAXPAYERS 686,694 22,118 4,545

PERCENTAGE OF TOTAL 3.2% 0.7%

TOTAL NET TAX DECREASE FOR THIS GROUP 46,273,000 (1) 37,537,000 27,956,000

PERCENTAGE OF TOTAL 81.1% 60.4%

PERCETAGE OF TOTAL INCOME & SALES TAXES PAID 100.0% 10.8%

(1) - MRS REPORT HAS $51.943 MILLION TAX REDUCTION, BUT THEY ALSO ESTIMATE THAT $5.7 MILLION OF TAX REFUNDS
FOR LOW INCOME TAXPAYERS WHO DO NOT FILE INCOME TAX RETURNS WILL NOT FILE TO GET REFUNDS.

(A) (B)
TAXPAYERS
WITH INCOME ALL
ALL OVER $316,958 TAXPAYERS
TAXPAYERS & TAX DECREASE EXCEPT (B)
---------------------------- --------------------------- --------------------------

TOTAL TAXPAYERS 686,694 4,545 682,149


PERCENTAGE OF TOTAL 100.00% 0.66% 99.34%

INCOME & SALES TAXES - CURRENT LAW 1,873,958,000 225,000,000 1,648,958,000


INCOME & SALES TAXES - LD 1495 1,827,715,000 (1) 197,044,000 1,630,671,000
--------------------------- --------------------------- ---------------------------
TOTAL NET TAX DECREASE FOR THIS GROUP 46,243,000 27,956,000 18,287,000

TAXES - CURRENT LAW PER TAXPAYER 2,729 49,505 2,417


TAXES - LD 1495 PER TAXPAYER 2,662 43,354 2,390
--------------------------- --------------------------- ---------------------------
AVERAGE TAX SAVINGS 67 6,151 27
PERCENTAGE SAVINGS 2.47% 12.42% 1.11%

THESE NUMBERS ARE ESTIMATES AS THE REPORT ONLY GAVE THE TAX DECREASE.

(A) (B)
TAXPAYERS ( C) TAX SAVINGS
WITH INCOME ALL (INCREASE)
ALL OVER $316,958 TAXPAYERS PER TAXPAYER
TAXPAYERS & TAX DECREASE EXCEPT (B) EXCLUDING (B)
---------------------------- --------------------------- -------------------------- ------------------------
NET TAX SAVINGS FROM ABOVE YEAR 2010 46,243,000 27,956,000 18,287,000 27

2011 TAX SAVINGS BEFORE INFLATION ADJ 46,243,000 27,956,000 18,287,000


LOSS OF INFLATION ADJUSTMENT IN 2011 (15,107,268) (231,795) (14,875,473)
-------------------------- -------------------------- --------------------------
2011 ADJUSTED NET TAX SAVINGS 31,135,732 27,724,205 3,411,527 5

2012 TAX SAVINGS BEFORE INFLATION ADJ 46,243,000 27,956,000 18,287,000


LOSS OF INFLATION ADJUSTMENT IN 2012 (32,274,618) (459,045) (31,815,573)
-------------------------- -------------------------- --------------------------
2012 ADJUSTED NET TAX SAVINGS (INCREASE) 13,968,382 27,496,955 (13,528,573) (20)

2013 TAX SAVINGS BEFORE INFLATION ADJ 46,243,000 27,956,000 18,287,000


LOSS OF INFLATION ADJUSTMENT IN 2013 (49,441,968) (704,475) (48,737,493)
-------------------------- -------------------------- --------------------------
2013 ADJUSTED NET TAX SAVINGS (INCREASE) (3,198,968) 27,251,525 (30,450,493) (45)

-------------------------- -------------------------- --------------------------


NET TAX (INCREASE) DECREASE 2010 - 2013 88,148,146 110,428,685 (22,280,539) (33)
============== ============== ==============
TOTAL PER TAXPAYER 24,297 (33)
EXHIBIT A
LD 1495 DOES NOT HAVE INFLATION ADJUSTMENTS UNTIL 2014, WHILE PRIOR LAW HAD INFLATION ADJUSTMENTS
EVERY YEAR. SO THE TAX SAVINGS IN 2010 ARE REDUCED BY THE LOST OF THE INFLATION ADJUSTMENTS.

TAX IMPACT ON TAXPAYERS WITH INCOME FROM $106,974 TO $316,958

NUMBER OF TAX INCREASE AVERAGE TAX


INCOME TAXPAYERS (DECREASE) INCREASE
--------------------------------- -------------------------- ---------------------------- --------------------------

$ 106,974 - 143,103 34,335 (560,000) (16)


$ 143,103 - 316,958 27,470 1,512,000 55
--------------------------- ---------------------------
61,805 952,000 15
1 EXHIBIT A1
ME_TAX_LD1495-R4-20-10
TAX INCIDENCE COMPARISON

COMPARISON OF APRIL 2009 MRS REPORT TO JANUARY 2010 REPORT

FROM THE "COMBINED INCIDENCE OF TAX REFORM" REPORT PREPARED BY MAINE REVENUE SERVICES (MRS)

CHANGE FROM
APRIL 2009 JANUARY 2010 4/09 TO 1/10 % CHANGE
----------------------- ----------------------- ----------------------- -------------------

TOTAL TAXPAYERS 665,629 686,694 21,065 3.2%

TOTAL INCOME TAX OLD LAW 1,288,825,000 1,168,547,000 (120,278,000) -9.3%


TOTAL SALES TAX OLD LAW 732,673,000 705,411,000 (27,262,000) -3.7%
----------------------- ----------------------- ------------------------
TOTAL INCOME & SALES TAX OLD LAW 2,021,498,000 1,873,958,000 (147,540,000) -7.3%

TOTAL INCOME TAX LD 1495 1,177,081,000 1,063,496,000 (113,585,000) -9.6%


TOTAL SALES TAX LD 1495 790,520,000 758,519,000 (32,001,000) -4.0%
----------------------- ----------------------- -----------------------
TOTAL INCOME & SALES TAX LD 1495 1,967,601,000 1,822,015,000 (145,586,000) -7.4%

INCOME TAX CUT - ALL TAXPAYERS 111,744,000 8.7% 105,051,000 9.0% (6,693,000) -6.0%
SALES TAX INCREASE ALL TAXPAYERS (57,847,000) -7.9% (53,108,000) -7.5% 4,739,000 -8.2%
----------------------- ----------------------- -----------------------
INCOME & SALES TAX CUT - ALL TAXPAYERS 53,897,000 51,943,000 (1,954,000) -3.6%

TAX CHANGES ADJUSTED FOR EXPECTED NON FILERS (1)


INCOME TAX CUT - ALL TAXPAYERS 106,044,000 8.2% 99,351,000 8.5%
SALES TAX INCREASE ALL TAXPAYERS (57,847,000) -7.9% (53,108,000) -7.5%
----------------------- -----------------------
INCOME & SALES TAX CUT - ALL TAXPAYERS 48,197,000 2.4% 46,243,000 2.5%

(1) - MRS ESTIMATES THAT 50% OF LOW INCOME TAXPAYERS WILL NOT FILE TO GET A $50 - $70 INCOME TAX REFUND. IN TOTAL
MRS ESTIMATES THAT $5.7 MILLION IN REFUNDS WILL NOT BE COLLECTED. THE INCOME REDUCTION IS REDUCED BY THIS AMOUNT.
EXHIBIT A2
ME_TAX_LD1495-R4-20-10
2010 TAX BILLS SUM

COMBINED INCOME, SALES & PRPOERTY TAX IMPACT TO MAINE TAXPAYERS FROM 2009 TAX LAWS

FROM THE "COMBINED INCIDENCE OF TAX REFORM" REPORT PREPARED BY MAINE REVENUE SERVICES

(A) (B)
TAXPAYERS
WITH INCOME ALL
ALL OVER $316,958 TAXPAYERS
TAXPAYERS & TAX DECREASE EXCEPT (B)
---------------------------- --------------------------- --------------------------
TOTAL TAXPAYERS 686,694 4,545 682,149
PERCENTAGE OF TOTAL 100.00% 0.66% 99.34%

NET SALES & INCOME TAX (DECREASE) - LD 1495 (51,943,000) (27,956,000) (23,987,000)
ESTIMATED INCOME TAX REFUNDS - UNCLAIMED 5,700,000 (1) 0 5,700,000
--------------------------- --------------------------- ---------------------------
ADJUSTED LD 1495 TAX CHANGE (46,243,000) (27,956,000) (18,287,000)

2010 BUDGET INCOME TAX INCREASE 9,800,000 (A) 136,350 9,663,650


20% CUT IN PROPERTY TAX CIRCUIT BREAKER 9,000,000 (B) 0 9,000,000
HOMESTEAD EXEMPTION CUT FROM $13,000 TO $10,000 14,000,000 ( C) 204,525 13,795,475
--------------------------- --------------------------- ---------------------------
SUBTOTAL - LD 353 TAX INCREASES 32,800,000 340,875 32,459,125

--------------------------- --------------------------- ---------------------------


NET 2010 TAX (DECREASE) INCREASE 2009 TAX LAWS (13,443,000) (27,615,125) 14,172,125
=============== ==============
PERCENTAGE OF TOTAL 100.0%
=============

CALCULATION OF % OF MAINERS WITH A NET TAX DECREASE IN 2010 - FROM LD 1495 & LD 353 PASSED IN 2009

NUMBER OF PERCENTAGE
TAXPAYERS OF TOTAL
---------------------------- ---------------------------
TOTAL MAINE TAX FAMILIES ESTIMATED IN 2010 BY THE MRS 686,694 100.0%

TOTAL REPORTED WITH A TAX DECREASE PER MRS 2010 REPORT 604,977 88.1%
ADJUSTMENT TO REFLECT TAXPAYERS WHO WILL NOT FILE (1) (125,000) -18.2%
---------------------------- ----------------------------
479,977 69.9%

ADJUSTMENT TO REFLECT TAXPAYERS WITH PROPERTY TAX INCREASE (B) (60,000) -8.7%
ADJUSTMENT TO REFLECT TAXPAYERS WITH PROPERTY TAX INCREASE ( C) (50,000) -7.3%
---------------------------- ---------------------------
ADJUSTED MAINERS WITH TAX DECREASE 369,977 53.9%
==============

(1) - THE MAINE REVENUE SERVICES ESTIMATES THAT ABOUT HALF OF THE TAXPAYER'S WHO CURRENTLY DON'T
FILE AN INCOME TAX RETURN AND ARE ENTITLED TO A $50-$70 TAX REFUND WILL NOT FILE. IT IS ESTIUMATED
AT 120,000 TAXPAYERS WILL NOT FILE AND THUS WILL HAVE A NET TAX INCREASE IN TOTAL OF $5.7 MILLION.

(A) - TO HELP BALANCE THE 2010 BUDGET, LD 353 CUT THE INCOME TAX INFLATION INDEX FOR 2009. THIS CHANGE
INCREASED INCOME TAXES IN 2009 BY $10.5 MILLION. ASSUMED $9.8 MILLION IMPACT ON MAINE RESIDENTS
AND .7 MILLION ON NON RESIDENTS.

(B) - TO HELP BALANCE THE 2010 BUDGET, LD 353 CUT THE THE PROPERTY TAX CIRCUIT BREAKER REBATE
PRROGRAM BY 20%. THE ESTIMATED TAX INCREASE WAS BASED ON $43.0 MILLION COST OF 100% REBATE ESTIMATE.

(C ) - LD 353 REDUCED THE HOMESTEAD EXEMPTION FROM $13,000 TO $10,000 EFFECTIVE IN 2010.
EXAMPLES 1-4
IMPACT OF LD 1495 ON TAXPAYERS - TAXPAYERS 65 OR OLDER WITH NO ITEMIZED DEDUCTIONS

EXAMPLE 1 MARRIED WITH MAINE ADJUSTED GROSS INCOME OF $60,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2012 TAX RATE
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------ --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 2,287 2,258 2,208 2,149 2,111 8,726 3.52%

MAINE INCOME TAX - LD 1495 2,275 2,275 2,275 2,275 2,275 9,100 3.79%
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------
NET INCOME TAX DECREASE (INCREASE) 12 (17) (67) (126) (164) (374)

SALES TAX (INCREASE) (2) (120) (120) (123) (126) (129) (498)
---------------------- ------------------ ------------------ ------------------ ------------------ ------------------
NET TAX DECREASE (INCREASE) (108) (137) (190) (252) (293) (872)
==========

EXAMPLE 2 MARRIED WITH MAINE ADJUSTED GROSS INCOME OF $50,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------ --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 1,541 1,525 1,492 1,449 1,411 5,877 2.82%

MAINE INCOME TAX - LD 1495 1,430 1,430 1,430 1,430 1,430 5,720 2.86%
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------
NET INCOME TAX DECREASE (INCREASE) 111 95 62 19 (19) 157

SALES TAX (INCREASE) (2) (117) (117) (120) (123) (126) (486)
---------------------- ------------------ ------------------ ------------------ ------------------ ------------------
NET TAX DECREASE (INCREASE) (6) (22) (58) (104) (145) (329)
==========

EXAMPLE 3 MARRIED WITH MAINE ADJUSTED GROSS INCOME OF $40,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------ --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 841 825 792 749 710 3,076 1.78%

MAINE INCOME TAX - LD 1495 780 780 780 780 780 3,120 1.95%
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------
NET INCOME TAX DECREASE (INCREASE) 61 45 12 (31) (70) (44)

SALES TAX (INCREASE) (2) (108) (108) (110) (114) (116) (448)
---------------------- ------------------ ------------------ ------------------ ------------------ ------------------
NET TAX DECREASE (INCREASE) (47) (63) (98) (145) (186) (492)
==========

EXAMPLE 4 SINGLE WITH MAINE ADJUSTED GROSS INCOME OF $35,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------ --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 1,463 1,450 1,421 1,386 1,356 5,613 3.87%

MAINE INCOME TAX - LD 1495 1,438 1,438 1,438 1,438 1,438 5,752 4.11%
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------
NET INCOME TAX DECREASE (INCREASE) 25 12 (17) (52) (82) (139)

SALES TAX (INCREASE) (2) (89) (89) (91) (93) (95) (368)
---------------------- ------------------ ------------------ ------------------ ------------------ ------------------
NET TAX DECREASE (INCREASE) (64) (77) (108) (145) (177) (507)
==========

EXAMPLE 4A SINGLE WITH MAINE ADJUSTED GROSS INCOME OF $30,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------ --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 1,038 1,025 1,007 983 964 3,979 3.21%

MAINE INCOME TAX - LD 1495 978 978 978 978 978 3,910 3.26%
--------------------- ------------------ ------------------ ------------------ ------------------ ------------------
NET INCOME TAX DECREASE (INCREASE) 61 48 30 6 (14) 69

SALES TAX (INCREASE) (2) (85) (85) (87) (89) (91) (352)
---------------------- ------------------ ------------------ ------------------ ------------------ ------------------
NET TAX DECREASE (INCREASE) (25) (38) (58) (84) (105) (283)
==========

LD 1495 DOES NOT ADJUST FOR INFLATION UNTIL 2014, WHILE OLD LAW ADJUSTED EVERY YEAR
(1) - MAINE LAW AS OF MAY 1, 2009 WHICH HAD FULL INFLATION ADJUSTMENT FOR 2009.
ASSUMED ABOUT 2.5% INFLATION ADJUSTMENT FOR YEARS 2011, 2012 & 2013.
(2) - THE SALES TAX INCREASE IS AN ESTIMATE BY MAINE REVENUE SERVICES. THE NUMBER
FOR 2011, 2012 AND 2013 IS BASED ON THE 2010 NUMBER PLUS A YEARLY INCREASE OF 2.5%.
(A) - MAINE REVENUE SERVICES OLD LAW CALCULATION DOES NOT AGREE WITH MAY 2009 LAW, IT
REDUCES THE 2009 INFLATION ADJUSTMENT TO RAISE TAXES BY $10.5 MILLION IN FYE 2010.
EXAMPLES 1-4
EXAMPLE 1
IMPACT OF INFLATION ADJUSTMENT TO TAX BRACKETS FROM 2004 - 2009

STANDARD TAX ON ABOVE TAX % ACCUMUL % AVERAGE %


DEDUCTION TAXPAYER DECREASE DECREASE DECREASE DECREASE
----------------------- ------------------------- ------------------- ------------------- ------------------- -------------------
2003 LAW 9,850 2,633
2004 LAW 10,050 2,590 43 1.62%
2005 LAW 10,300 2,544 46 1.78%
2006 LAW 10,600 2,482 62 2.44%
2007 LAW 11,000 2,400 82 3.30%
2008 LAW 11,200 2,351 49 2.03%
2009 LAW 11,700 2,258 93 3.95%
-------------------
374 14.45% 2.41%

ESTIMATED 2010 2,258 0 0.00%


ESTIMATED 2011 2,208 50 2.21%
ESTIMATED 2012 2,149 59 2.67%
ESTIMATED 2013 2,111 38 1.77%
-------------------
147 6.51% 1.63%

EXAMPLE 2
IMPACT OF INFLATION ADJUSTMENT TO TAX BRACKETS FROM 2004 - 2009

STANDARD TAX ON ABOVE TAX % ACCUMUL % AVERAGE %


DEDUCTION TAXPAYER DECREASE DECREASE DECREASE DECREASE
----------------------- ------------------------- ------------------- ------------------- ------------------- -------------------
2003 LAW 9,850 1,775
2004 LAW 10,050 1,746 29 1.63%
2005 LAW 10,300 1,715 31 1.78%
2006 LAW 10,600 1,675 41 2.36%
2007 LAW 11,000 1,620 55 3.28%
2008 LAW 11,200 1,588 32 1.98%
2009 LAW 11,700 1,525 63 3.97%
-------------------
251 14.35% 2.39%

ESTIMATED 2010 1,525 0 0.00%


ESTIMATED 2011 1,492 33 2.16%
ESTIMATED 2012 1,449 43 2.88%
ESTIMATED 2013 1,411 38
-------------------
114 7.48% 1.87%

EXAMPLE 3
IMPACT OF INFLATION ADJUSTMENT TO TAX BRACKETS FROM 2004 - 2009

STANDARD TAX ON ABOVE TAX ACCUMUL % AVERAGE %


DEDUCTION TAXPAYER DECREASE % DECREASE DECREASE DECREASE
----------------------- ------------------------- ------------------------
-----------------------
------------------- -------------------
2003 LAW 9,850 1,075
2004 LAW 10,050 1,046 29 2.70%
2005 LAW 10,300 1,015 31 2.96%
2006 LAW 10,600 975 41 3.99%
2007 LAW 11,000 920 55 5.64%
2008 LAW 11,200 888 32 3.48%
2009 LAW 11,700 825 63 7.10%
-------------------
251 23.95% 3.99%

ESTIMATED 2010 825 0 0.00%


ESTIMATED 2011 792 33 4.00%
ESTIMATED 2012 749 43 5.43%
ESTIMATED 2013 711 38 5.08%
-------------------
114 13.83% 3.46%

EXAMPLE 4
IMPACT OF INFLATION ADJUSTMENT TO TAX BRACKETS FROM 2004 - 2009

STANDARD TAX ON ABOVE TAX % ACCUMUL % AVERAGE %


DEDUCTION TAXPAYER DECREASE DECREASE DECREASE DECREASE
----------------------- ------------------------- ------------------- ------------------- ------------------- -------------------
2003 LAW 5,900 1,660
2004 LAW 6,050 1,634 26 1.55%
2005 LAW 6,250 1,604 30 1.82%
2006 LAW 6,400 1,575 30 1.84%
2007 LAW 6,700 1,525 50 3.18%
2008 LAW 6,800 1,500 25 1.64%
2009 LAW 7,100 1,450 50 3.33%
------------------
210 12.85% 2.14%

ESTIMATED 2010 1,450 0 0.00%


ESTIMATED 2011 1,421 29 2.00%
ESTIMATED 2012 1,386 35 2.46%
ESTIMATED 2013 1,356 30 2.17%
-------------------
64 6.48% 1.62%
EXAMPLES 5-8
IMPACT OF LD 1495 ON TAXPAYERS - MARRIED COUPLES, 1 CHILD AND NO ITEMIZED DEDUCTIONS

EXAMPLE 5 MAINE ADJUSTED GROSS INCOME OF $65,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 2,657 2,628 2,577 2,522 2,465 10,192 3.79%

MAINE INCOME TAX - LD 1495 2,425 2,425 2,425 2,425 2,425 9,700 3.73%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET INCOME TAX DECREASE (INCREASE) 232 203 152 97 40 492

SALES TAX (INCREASE) (2) (129) (129) (132) (135) (139) (535)
------------------------------------------ ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 103 74 20 (38) (99) (43)
============

EXAMPLE 6 MAINE ADJUSTED GROSS INCOME OF $60,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 2,232 2,203 2,152 2,110 2,073 8,538 3.46%

MAINE INCOME TAX - LD 1495 2,025 2,025 2,025 2,025 2,025 8,100 3.38%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET INCOME TAX DECREASE (INCREASE) 207 178 127 85 48 438

SALES TAX (INCREASE) (2) (127) (127) (130) (133) (137) (527)
------------------------------------------ ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 80 51 (3) (48) (89) (89)
============

EXAMPLE 7 MAINE ADJUSTED GROSS INCOME OF $50,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 1,495 1,479 1,446 1,410 1,373 5,708 2.75%

MAINE INCOME TAX - LD 1495 1,300 1,300 1,300 1,300 1,300 5,200 2.60%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET INCOME TAX DECREASE (INCREASE) 195 179 146 110 73 508

SALES TAX (INCREASE) (2) (124) (124) (127) (130) (133) (514)
------------------------------------------ ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 71 55 19 (20) (60) (6)
============

EXAMPLE 8 MAINE ADJUSTED GROSS INCOME OF $45,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 1,145 1,129 1,096 1,060 1,023 4,308 1.57%

MAINE INCOME TAX - LD 1495 975 975 975 975 975 3,900 1.50%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET INCOME TAX DECREASE (INCREASE) 170 154 121 85 48 408

SALES TAX (INCREASE) (2) (119) (119) (122) (125) (128) (494)
------------------------------------------ ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 51 35 (1) (40) (80) (86)
============

LD 1495 DOES NOT ADJUST FOR INFLATION UNTIL 2014, WHILE OLD LAW ADJUSTED EVERY YEAR
(1) - MAINE LAW AS OF MAY 1, 2009 WHICH HAD FULL INFLATION ADJUSTMENT FOR 2009.
ASSUMED ABOUT 2.5% INFLATION ADJUSTMENT FOR YEARS 2011, 2012 & 2013.
(2) - THE SALES TAX INCREASE IS AN ESTIMATE BY MAINE REVENUE SERVICES. THE NUMBER
FOR 2011, 2012 AND 2013 IS BASED ON THE 2010 NUMBER PLUS A YEARLY INCREASE OF 2.5%.
(A) - MAINE REVENUE SERVICES OLD LAW CALCULATION DOES NOT AGREE WITH MAY 2009 LAW, IT
REDUCES THE 2009 INFLATION ADJUSTMENT TO RAISE TAXES BY $10.5 MILLION IN FYE 2010.
EXAMPLES 9-12
IMPACT OF LD 1495 ON TAXPAYERS - SINGLE NO CHILDREN AND NO ITEMIZED DEDUCTIONS

EXAMPLE 9 MAINE ADJUSTED GROSS INCOME OF $40,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 2,007 1,994 1,965 1,934 1,909 7,802 4.77%

MAINE INCOME TAX - LD 1495 1,838 1,838 1,838 1,838 1,838 7,352 4.60%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET INCOME TAX DECREASE (INCREASE) 169 156 127 96 71 450

SALES TAX (INCREASE) (2) (92) (92) (94) (97) (100) (383)
------------------------------------------ ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 77 64 33 (1) (29) 67
============

EXAMPLE 10 MAINE ADJUSTED GROSS INCOME OF $35,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 1,582 1,569 1,540 1,509 1,484 6,102 4.24%

MAINE INCOME TAX - LD 1495 1,438 1,438 1,438 1,438 1,438 5,752 4.11%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET INCOME TAX DECREASE (INCREASE) 144 131 102 71 46 350

SALES TAX (INCREASE) (2) (89) (89) (91) (93) (95) (368)
------------------------------------------ ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 55 42 11 (22) (49) (18)
============

EXAMPLE 11 MAINE ADJUSTED GROSS INCOME OF $30,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 1,157 1,144 1,115 1,084 1,069 4,412 3.56%

MAINE INCOME TAX - LD 1495 1,038 1,038 1,038 1,038 1,038 4,152 3.46%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET INCOME TAX DECREASE (INCREASE) 119 106 77 46 31 260

SALES TAX (INCREASE) (2) (85) (85) (87) (89) (91) (352)
------------------------------------------ ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 34 21 (10) (43) (60) (92)
============

EXAMPLE 12 MAINE ADJUSTED GROSS INCOME OF $25,000


2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 782 774 755 734 719 2,982 2.88%

MAINE INCOME TAX - LD 1495 675 675 675 675 675 2,700 2.70%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET INCOME TAX DECREASE (INCREASE) 107 99 80 59 44 282

SALES TAX (INCREASE) (2) (75) (75) (77) (79) (81) (312)
------------------------------------------ ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 32 24 3 (20) (37) (30)
============

LD 1495 DOES NOT ADJUST FOR INFLATION UNTIL 2014, WHILE OLD LAW ADJUSTED EVERY YEAR
(1) - MAINE LAW AS OF MAY 1, 2009 WHICH HAD FULL INFLATION ADJUSTMENT FOR 2009.
ASSUMED ABOUT 2.5% INFLATION ADJUSTMENT FOR YEARS 2011, 2012 & 2013.
(2) - THE SALES TAX INCREASE IS AN ESTIMATE BY MAINE REVENUE SERVICES. THE NUMBER
FOR 2011, 2012 AND 2013 IS BASED ON THE 2010 NUMBER PLUS A YEARLY INCREASE OF 2.5%.
(A) - MAINE REVENUE SERVICES OLD LAW CALCULATION DOES NOT AGREE WITH MAY 2009 LAW, IT
REDUCES THE 2009 INFLATION ADJUSTMENT TO RAISE TAXES BY $10.5 MILLION IN FYE 2010.
EXAMPLES 13-16
IMPACT OF LD 1495 ON TAXPAYERS - TAXPAYERS WITH ITEMIZED DEDUCTIONS

EXAMPLE 13 - MARRIED 1 CHILD MAINE ADJUSTED GROSS INCOME OF $200,000


ITEMIZED DEDUCTIONS OF $30,000 2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 12,390 12,361 12,327 12,293 12,257 49,238 6.13%

MAINE INCOME TAX - LD 1495 12,125 12,125 12,125 12,125 12,125 48,500 6.06%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET INCOME TAX DECREASE (INCREASE) 265 236 202 168 132 738

SALES TAX (INCREASE) (2) (355) (355) (364) (373) (383) (1,475)
---------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) (90) (119) (162) (205) (251) (737)
============

EXAMPLE 14 - MARRIED 1 CHILD MAINE ADJUSTED GROSS INCOME OF $150,000


ITEMIZED DEDUCTIONS OF $25,000 2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 8,565 8,536 8,502 8,468 8,432 33,938 5.62%

MAINE INCOME TAX - LD 1495 8,250 8,250 8,250 8,250 8,250 33,000 5.50%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET MAINE INCOME TAX DECREASE (INCREASE) 315 286 252 218 182 938
FEDERAL INCOME TAX DECREASE (INCREASE) (78) (71) (63) (55) (46) (234)
SALES TAX (INCREASE) (2) (269) (269) (276) (283) (290) (1,118)
---------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) (32) (54) (87) (120) (154) (414)
============

EXAMPLE 15 - SINGLE - NO CHILDREN MAINE ADJUSTED GROSS INCOME OF $100,000


ITEMIZED DEDUCTIONS OF $20,000 2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 5,892 5,878 5,862 5,844 5,828 23,412 5.83%

MAINE INCOME TAX - LD 1495 6,188 6,188 6,188 6,188 6,188 24,752 6.19%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET MAINE INCOME TAX DECREASE (INCREASE) (296) (310) (326) (344) (360) (1,340)
FEDERAL INCOME TAX DECREASE (INCREASE) 75 78 82 86 90 335
SALES TAX (INCREASE) (2) (120) (120) (123) (126) (129) (498)
---------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) (342) (352) (367) (384) (399) (1,502)
============

EXAMPLE 16 - SINGLE - NO CHILDREN MAINE ADJUSTED GROSS INCOME OF $80,000


ITEMIZED DEDUCTIONS OF $18,000 2013
MRS (A) TOTAL EFFECTIVE
CALCULATION 2010 2011 2012 2013 2010 - 2013 TAX RATE
--------------------- -------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 4,362 4,348 4,332 4,314 4,298 17,292 5.37%

MAINE INCOME TAX - LD 1495 4,588 4,588 4,588 4,588 4,588 18,352 5.74%
--------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET MAINE INCOME TAX DECREASE (INCREASE) (226) (240) (256) (274) (290) (1,060)
FEDERAL INCOME TAX DECREASE (INCREASE) 57 60 64 69 73 266
SALES TAX (INCREASE) (2) (106) (106) (108) (111) (114) (439)
---------------------- -------------------- ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) (276) (286) (300) (316) (331) (1,233)
============

LD 1495 DOES NOT ADJUST FOR INFLATION UNTIL 2014, WHILE OLD LAW ADJUSTED EVERY YEAR
(1) - MAINE LAW AS OF MAY 1, 2009 WHICH HAD FULL INFLATION ADJUSTMENT FOR 2009.
ASSUMED ABOUT 2.5% INFLATION ADJUSTMENT FOR YEARS 2011, 2012 & 2012.
(2) - THE SALES TAX INCREASE IS AN ESTIMATE BY MAINE REVENUE SERVICES. THE NUMBER
FOR 2011, 2012 AND 2013 IS BASED ON THE 2010 NUMBER PLUS A YEARLY INCREASE OF 2.5%.
(A) - MAINE REVENUE SERVICES OLD LAW CALCULATION DOES NOT AGREE WITH MAY 2009 LAW, IT
REDUCES THE 2009 INFLATION ADJUSTMENT TO RAISE TAXES BY $10.5 MILLION IN FYE 2010.
EXAMPLES 17-20
IMPACT OF LD 1495 ON TAXPAYERS - TAXPAYERS WITH ITEMIZED DEDUCTIONS

EXAMPLE 17 - MARRIED 1 CHILD MAINE ADJUSTED GROSS INCOME OF $2,600,000


ITEMIZED DEDUCTIONS OF $33,500 2013
TOTAL EFFECTIVE
2010 2011 2012 2013 2010 - 2013 TAX RATE
-------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 216,063 216,029 215,996 215,959 864,047 8.31%

MAINE INCOME TAX - LD 1495 177,225 177,225 177,225 177,225 708,900 6.82%
-------------------- ------------------ -------------------- -------------------- ---------------------
NET INCOME TAX DECREASE (INCREASE) 38,838 38,804 38,771 38,734 155,147

SALES TAX (INCREASE) (2) (1,500) (1,538) (1,576) (1,615) (6,229)


-------------------- ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 37,338 37,266 37,195 37,119 148,918
============

EXAMPLE 18 - MARRIED 1 CHILD MAINE ADJUSTED GROSS INCOME OF $1,000,000


ITEMIZED DEDUCTIONS OF $33,500 2013
TOTAL EFFECTIVE
2010 2011 2012 2013 2010 - 2013 TAX RATE
-------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 80,063 80,029 79,996 79,959 320,047 8.00%

MAINE INCOME TAX - LD 1495 67,625 67,625 67,625 67,625 270,500 6.76%
-------------------- ------------------ -------------------- -------------------- ---------------------
NET MAINE INCOME TAX DECREASE (INCREASE) 12,438 12,404 12,371 12,334 49,547

SALES TAX (INCREASE) (2) (1,250) (1,281) (1,313) (1,346) (5,190)


-------------------- ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 11,188 11,123 11,058 10,988 44,357
============

EXAMPLE 19 - MARRIED 1 CHILD MAINE ADJUSTED GROSS INCOME OF $600,000


ITEMIZED DEDUCTIONS OF $40,000 2013
TOTAL EFFECTIVE
2010 2011 2012 2013 2010 - 2013 TAX RATE
-------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 45,511 45,477 45,443 45,407 181,838 7.57%

MAINE INCOME TAX - LD 1495 40,225 40,225 40,225 40,225 160,900 6.70%
-------------------- ------------------ -------------------- -------------------- ---------------------
NET MAINE INCOME TAX DECREASE (INCREASE) 5,286 5,252 5,218 5,182 20,938

SALES TAX (INCREASE) (2) (800) (820) (841) (862) (3,323)


-------------------- ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) 4,486 4,432 4,377 4,320 17,615
============

EXAMPLE 20 - MARRIED 1 CHILD MAINE ADJUSTED GROSS INCOME OF $300,000


ITEMIZED DEDUCTIONS OF $40,000 2013
TOTAL EFFECTIVE
2010 2011 2012 2013 2010 - 2013 TAX RATE
-------------------- ------------------ -------------------- -------------------- --------------------- --------------------
MAINE INCOME TAX - MAY 2009 LAW (1) 20,011 19,978 19,943 19,907 79,839 6.64%

MAINE INCOME TAX - LD 1495 19,675 19,675 19,675 19,675 78,700 6.56%
-------------------- ------------------ -------------------- -------------------- ---------------------
NET MAINE INCOME TAX DECREASE (INCREASE) 336 303 268 232 1,139

SALES TAX (INCREASE) (2) (557) (571) (585) (600) (2,313)


-------------------- ------------------ -------------------- -------------------- ---------------------
NET TAX DECREASE (INCREASE) (221) (268) (317) (368) (1,174)
============

LD 1495 DOES NOT ADJUST FOR INFLATION UNTIL 2014, WHILE OLD LAW ADJUSTED EVERY YEAR
(1) - MAINE LAW AS OF MAY 1, 2009 WHICH HAD FULL INFLATION ADJUSTMENT FOR 2009.
ASSUMED ABOUT 2.5% INFLATION ADJUSTMENT FOR YEARS 2011, 2012 & 2012.
(2) - THE SALES TAX INCREASE IS AN ESTIMATE BY MAINE REVENUE SERVICES. THE NUMBER
FOR 2011, 2012 AND 2013 IS BASED ON THE 2010 NUMBER PLUS A YEARLY INCREASE OF 2.5%.
(A) - MAINE REVENUE SERVICES OLD LAW CALCULATION DOES NOT AGREE WITH MAY 2009 LAW, IT
REDUCES THE 2009 INFLATION ADJUSTMENT TO RAISE TAXES BY $10.5 MILLION IN FYE 2010.

NOTE: DUE TO AMT, NONE OF THE ABOVE TAXPAYERS GET A FEDERAL TAX BENEFIT FROM THE MAINE INCOME TAX DEDUCTION.
EXHIBIT B EXHIBIT B
ME_TAX_LD1495R8-14-09
COMPARISON OF LD 1495 TO 8.7% INCOME TAX CUT FOR ALL TAXPAYERS

MAINE ADJUSTED (A) (B) LD 1495 VS 8.7%


ITEMIZED LD 1495 INCOME CURRENT TAX CUT
FILING NUMBER OF DEDUCTIONS YEAR 2010 MAY 2009 TAX (DECREASE) % DECREASE 2009 LAW TAX (DECREASE) TAX SAVINGS
STATUS CHILDREN INCOME OR STD DED PROPOSED TAX CURRENT TAX INCREASE INCREASE LESS 8.7% AT 8.7% (TAX INCREASE)
---------------- ------------------- --------------------- ---------------------------- ----------------------- --------------------- --------------------- --------------------- ------------------------ ------------------------ -------------------------

MARRIED 1 2,600,000 50,000 177,225 216,063 (38,838) -18.0% 197,266 (18,797) 20,041
MARRIED 1 1,000,000 50,000 67,625 80,063 (12,438) -15.5% 73,098 (6,965) 5,473
MARRIED 1 600,000 40,000 40,225 45,511 (5,286) -11.6% 41,551 (3,959) 1,326

MARRIED 1 400,000 37,500 26,525 28,511 (1,986) -7.0% 26,030 (2,480) (495)
MARRIED 1 300,000 33,500 19,675 20,011 (336) -1.7% 18,270 (1,741) (1,405)
MARRIED 1 200,000 27,500 12,125 12,361 (236) -1.9% 11,285 (1,075) (840)
SINGLE 0 150,000 22,500 9,750 9,916 (166) -1.7% 9,053 (863) (697)
MARRIED 0 150,000 24,000 8,555 8,863 (308) -3.5% 8,092 (771) (463)
MARRIED 2 150,000 24,000 8,055 8,378 (323) -3.9% 7,649 (729) (406)
SINGLE 0 125,000 20,000 8,125 8,003 122 1.5% 7,307 (696) (818)
MARRIED 0 125,000 22,000 6,665 6,908 (243) -3.5% 6,307 (601) (358)
MARRIED 1 125,000 22,000 6,415 6,666 (251) -3.8% 6,086 (580) (329)
SINGLE 0 100,000 18,500 6,188 5,878 310 5.3% 5,367 (511) (821)
MARRIED 0 100,000 20,000 4,775 4,953 (178) -3.6% 4,522 (431) (253)
MARRIED 1 100,000 20,000 4,525 4,711 (186) -3.9% 4,301 (410) (224)

NOTE: WHAT THE ABOVE ILLUSTRATES IS THAT 99% OF TAXPAYERS INCLUDING SMALL BUSINESSES WOULD HAVE MORE OF A TAX BREAK IF
IF A FLAT 8.7% INCOME TAX CUT WAS PASSED VS. LD 1495. LESS THAN 1% OF SMALL BUSINESSES IN MAINE HAVE INCOME IN EXCESS OF $400,000.

ACCORDINGLY THE STATEMENT THAT LD1495 WILL BENEFIT SMALL BUSINESS IN MAINE IS NOT TRUE.
EXHIBIT C
ME_TAX_LD1495-R8-14-09
EXH C TAX RATES
COMPARISON OF TAX RATES UNDER CURRENT LAW AND LD 1495 (A)

ASSUMPTIONS:
MARRIED WITH TWO CHILDREN AND INCOME OF $275,000
STATE ITEMIZED DEDUCTIONS OF $33,000.

(1)
MAY 2009 (A) TAX (DECREASE) % INCOME TAX
MAINE LAW LD 1495 INCREASE DECREASE
----------------------- ----------------------- -------------------------- ----------------------
INCOME TAX AFTER CREDITS 18,238 17,963 (276) -1.5%

ESTIMATED SALES TAX INCREASE 505 (2)


--------------------------
NET TAX INCREASE 229
==============

DETAIL OF INCOME TAX RATES


MAY 2009 MAINE LAW LD 1495 PASSED 6/09
------------------------------------------------ ---------------------------------------------------
TAX TAX RATE TAX TAX RATE
----------------------- ---------------------- -------------------------- -----------------------

TAX AFTER CREDITS ON FIRST 55,000 17 0.03% 275 0.50%


TAX ON THE NEXT 29,750 1,977 6.65% 2,380 8.00%
------------------------- ----------------------- --------------------------
SUBTOTAL 84,750 2,067 2.44% 2,655 3.13%

TAX ON THE NEXT 165,250 14,046 8.50% 13,220 8.00%


------------------------ ----------------------- --------------------------
SUBTOTAL 250,000 16,113 6.45% 15,875 6.35%

TAX ON NEXT 25,000 2,125 8.50% 2,088 8.35%


------------------------- ------------------------- --------------------------
TOTAL 275,000 18,238 6.63% 17,963 6.53%

NOTE: ALL INCOME EARNED IN EXCESS OF 275,000 WILL BE TAX AT 6.85% UNDER LD 1495.

(A) - LD 1495 PASSED 6/09


(1) - BASED ON OLD 2009 MAINE LAW. ASSUMES ZERO INFLATION ADJUSTMENT FOR 2010.
(2) - MAINE REVENUE SERVICES ESTIMATE

NOTE: WHAT THE ABOVE ILLUSTRATES IS THAT WHILE IT IS TRUE THAT LD 1495 REDUCES ITS TOP RATE FROM
8.5% TO 6.85%, THAT REDUCTION DOES NOT HAPPEN UNTIL VERY HIGH INCOME LEVELS. LESS THAN 2% OF MAINE
TAXPAYERS EARN MORE THAN $275,000. ALSO IT ILLUSTRATES THAT FOR THIS TAXPAYER THEIR OVERALL
EFFECTIVE TAX RATE ONLY DROPS FROM 6.63% TO 6.53%.

IMPACT OF INFLATION ADJUSTMENT TO TAX BRACKETS FROM 2004 - 2009

TAX ON ABOVE TAX ACCUMULATED


TAXPAYER DECREASE % DECREASE % DECREASE
------------------------- ------------------------ ----------------------- -----------------------

2004 LAW 18,430


2005 LAW 18,405 25 0.13%
2006 LAW 18,368 37 0.20%
2007 LAW 18,320 48 0.26%
2008 LAW 18,289 32 0.17%
2009 LAW 18,238 50 0.27%
-----------------------
191 1.04%
EXHIBIT D
ME_TAX_LD1495-R8-14-09
EXH D TAX RATES
COMPARISON OF TAX RATES UNDER CURRENT LAW AND LD 1495 (A)

ASSUMPTIONS:
MARRIED WITH TWO CHILDREN AND INCOME OF $70,000
ITEMIZED DEDUCTIONS OF $16,500
INTEREST 12,250 (175,000 AT 7%)
PROPERTY TAX 3,500
EXCISE TAX 400 (1) TAX
CONTRIBUTIONS 350 MAY 2009 (A) REDUCTION % TAX
MAINE LAW LD 1495 (INCREASE) REDUCTION
----------------------- ----------------------- ---------------------- ----------------------
MAINE INCOME TAX AFTER CREDITS 2,216 2,068 148 6.7%
FEDERAL INCOME TAX INCREASE (22)
ESTIMATED SALES TAX INCREASE (138)
-----------------------
NET TAX DECREASE (INCREASE) (12)
============

DETAIL OF TAX RATES


MAY 2009 MAINE LAW LD 1495 PASSED 6/09
------------------------------------------------ ------------------------------------------------
TAX TAX RATE TAX TAX RATE
----------------------- ---------------------- ---------------------- -----------------------
TAX ON FIRST 27,900 0 0.00% 1,814 6.50%
NEXT 10,150 203 2.00% 660 6.50%
NEXT 10,000 450 4.50% 650 6.50%
NEXT 6,950 487 7.00% 452 6.50%
------------------------- ------------------------- --------------------------------------------------
SUBTOTAL 55,000 1,140 2.07% 3,575 6.50%
TAX CREDITS 0 (2,707)
------------------------- ------------------------ ------------------------
NET TAX ON FIRST 55,000 1,140 2.07% 868 1.58%

TAX ON THE NEXT 13,250 928 7.00% 1,060 8.00%


------------------------- ----------------------- ----------------------
SUBTOTAL 68,250 2,067 3.03% 1,928 2.82%

TAX ON THE NEXT 1,750 149 8.50% 140 8.00%


------------------------ ----------------------- ----------------------
TOTAL 70,000 2,216 3.17% 2,068 2.95%
============= ============= =============

(A) - LD 1495 PASSED 6/09


(1) - BASED ON OLD 2009 MAINE LAW. ASSUMES ZERO INFLATION ADJUSTMENT FOR 2010.

THE ABOVE ILLUSTRATES THAT LD 1495 ACTUALLY TAXES ALL INCOME OVER $55,000 AT 8%, WHILE CURRENT
LAW TAXES SOME OF THIS INCOME AT 6.9% AND SOME AT 8.5%. UNDER CURRENT LAW A MARRIED COUPLE
WITH TWO CHILDREN, WHO DOES NOT ITEMIZE DEDUCTIONS PAYS TAXES AT 2% TO 7% ON THE FIRST $61,250
OF INCOME, THEN ALL INCOME OVER $61,250 IS TAX AT 8.5%.

LESS THAN 30% OF MAINE TAX FAMILIES EARN MORE THAN $59,000, SO MOST TAXPAYERS HIGHEST TAX RATE
IS ONLY 7%. THE 6.5% RATE UNDER LD 1495 IS ONLY A .5% REDUCTION NOT THE ADVERTISED 2% CUT FROM
8.5% TO 6.5%. ALSO INCOME OVER $55,000 IS TAX AT 8% UNDER LD 1495, SO THE RATE CUT ON HIGHER INCOME
IS AGAIN ONLY CUT BY .5% FROM 8.5% UNDER CURRENT LAW TO 8% UNDER LD 1495.

EXHIBITS C & D ILLUSTRATE THAT ONLY ABOUT 2% OF MAINERS AT THE TOP INCOME LEVELS ARE ACTUALLY
GETTING A RATE CUT FROM 8.5% TO 6.5%. THE 70% OF MAINERS EARNING LESS THAN $59,000 ARE GETTING
A TAX CUT FROM 7% TO 6.5% AND ALL OTHERS EXCEPT THE TOP 2% OF TAXPAYERS ARE GETTING A TAX
CUT FROM 8.5% TO 8% UNDER LD 1495.

IMPACT OF INFLATION ADJUSTMENT TO TAX BRACKETS FROM 2004 - 2009

TAX ON ABOVE TAX ACCUMULATED


TAXPAYER DECREASE % DECREASE % DECREASE
------------------------- ------------------------ ----------------------- -----------------------

2004 LAW 2,407


2005 LAW 2,382 25 1.03%
2006 LAW 2,346 37 1.53%
2007 LAW 2,298 48 2.05%
2008 LAW 2,266 32 1.38%
2009 LAW 2,216 50 2.22%
-----------------------
191 7.95%
EXHIBIT E
ME_TAX_LD1495-R8-14-09
EXH D TAX RATES
COMPARISON OF TAX RATES UNDER CURRENT LAW AND LD 1495 (A)

ASSUMPTIONS:
MARRIED WITH NO CHILDREN AND INCOME OF $60,000
BOTH AGE 65 OR OLDER
NO ITEMIZED DEDUCTIONS

(1) 2010 TAX


MAY 2009 (A) REDUCTION % TAX
MAINE LAW LD 1495 (INCREASE) REDUCTION
----------------------- ----------------------- ---------------------- ----------------------
MAINE INCOME TAX AFTER CREDITS 2,258 2,275 (17) -0.7%

ESTIMATED SALES TAX INCREASE (120)


-----------------------
NET TAX DECREASE (INCREASE) (137)
============

DETAIL OF TAX RATES


MAY 2009 MAINE LAW LD 1495 PASSED 6/09
------------------------------------------------ ------------------------------------------------
TAX TAX RATE TAX TAX RATE
----------------------- ---------------------- ---------------------- -----------------------
TAX ON THE FIRST 52,000 1,665 3,380 6.5%
TAX CREDITS (1,820)
------------------------- ----------------------- ----------------------
NET TAX ON FIRST 52,000 1,665 3.20% 1,560 3.00%
TAX ON NEXT 3,000 210 7.00% 255 8.50%
------------------------- ------------------------ ------------------------
TAX ON FIRST 55,000 1,875 3.41% 1,815 3.30%

TAX ON NEXT 2,750 193 7.00% 275 10.00%


------------------------ ----------------------- ----------------------
SUBTOTAL 57,750 2,067 3.58% 2,090 3.62%
TAX ON NEXT 250 21 8.50% 25 10.00%
------------------------- ------------------------- -----------------------
SUBTOTAL 58,000 2,088 3.60% 2,115 3.65%

TAX ON NEXT 2,000 170 8.50% 160 8.00%


-------------------------- -------------------------- --------------------------
TOTAL 60,000 2,258 3.76% 2,275 3.79%

(A) - LD 1495 PASSED 6/09


(1) - BASED ON OLD 2009 MAINE LAW. ASSUMES ZERO INFLATION ADJUSTMENT FOR 2010.

THE ABOVE ILLUSTRATES THAT LD 1495 ACTUALLY TAXES INCOME FROM $52,000 TO $55,000 AT 8.5%, WHILE CURRENT
LAW TAXES THIS INCOME AT 7.0% . IT ALSO SHOWS THAT INCOME FROM $55,000 TO $58,000 IS TAXED AT 10% UNDER
LD 1495 AS COMPARED TO 7% AND 8.5%.

IMPACT OF INFLATION ADJUSTMENT TO TAX BRACKETS FROM 2004 - 2009

TAX ON ABOVE TAX ACCUMULATED


TAXPAYER DECREASE % DECREASE % DECREASE
------------------------- ------------------------ ----------------------- -----------------------

2004 LAW 2,407


2005 LAW 2,382 25 1.03%
2006 LAW 2,346 37 1.53%
2007 LAW 2,298 48 2.05%
2008 LAW 2,266 32 1.38%
2009 LAW 2,258 8 0.34%
-----------------------
149 6.18%
EXHIBIT 1- ITEMIZED EXHIBIT 1
COMPARISON OF CURRENT ME TAX TO LD 1495

(A)
(1) ESTIMATED MAINE FEDERAL 2010
MAINE ADJUSTED LD 1495 INCOME SALES TAX TOTAL TAX INCOME TAX TOTAL TAX
NUMBER OF ITEMIZED MAY 2009 YEAR 2010 TAX (DECREASE) % DECREASE INCREASES (DECREASE) (DECREASE) (DECREASE)
FILING STATUS CHILDREN INCOME DEDUCTIONS TAX LAW PROPOSED TAX INCREASE INCREASE LD 1495 INCREASE INCREASE INCREASE
------------------------------ ------------------- --------------------- ----------------------- --------------------- ----------------------- --------------------- --------------------- ------------------------- ------------------------- -------------------------- -------------------------

MARRIED WITH 1 2,600,000 33,500 216,063 177,225 (38,838) -18.0% 1,500 (37,338) 0 (37,338)
MARRIED WITH 1 1,000,000 33,500 80,063 67,625 (12,438) -15.5% 1,250 (11,188) 0 (11,188)
MARRIED WITH 1 600,000 40,000 45,511 40,225 (5,286) -11.6% 800 (4,486) 0 (4,486)
MARRIED WITH 1 400,000 40,000 28,511 26,525 (1,986) -7.0% 655 (1,331) 0 (1,331)
MARRIED WITH 1 300,000 40,000 20,011 19,675 (336) -1.7% 557 222 0 222
MARRIED WITH 1 200,000 30,000 12,361 12,125 (236) -1.9% 355 120 0 120

SINGLE 0 150,000 22,500 9,916 9,750 (166) -1.7% 165 (0) 46 46


MARRIED WITH 0 150,000 24,000 8,863 8,555 (308) -3.5% 245 (63) 77 14
MARRIED WITH 2 150,000 24,000 8,378 8,055 (323) -3.9% 255 (68) 81 13
MARRIED WITH 3 150,000 24,000 8,136 7,805 (331) -4.1% 257 (74) 83 9
MARRIED WITH 5 150,000 24,000 7,652 7,305 (347) -4.5% 260 (87) 87 0

SINGLE 0 125,000 20,000 8,003 8,125 122 1.5% 145 267 (34) 233
MARRIED WITH 0 125,000 22,000 6,908 6,665 (243) -3.5% 205 (38) 61 23
MARRIED WITH 2 125,000 22,000 6,423 6,165 (258) -4.0% 210 (48) 65 16
MARRIED WITH 3 125,000 22,000 6,181 5,915 (266) -4.3% 215 (51) 67 16
MARRIED WITH 5 125,000 22,000 5,697 5,415 (282) -4.9% 217 (65) 70 6

SINGLE 0 100,000 20,000 5,878 6,188 310 5.3% 120 430 (77) 352
MARRIED WITH 0 100,000 20,000 4,953 4,775 (178) -3.6% 170 (8) 44 37
MARRIED WITH 2 100,000 20,000 4,468 4,275 (193) -4.3% 180 (13) 29 16
MARRIED WITH 3 100,000 20,000 4,226 4,025 (201) -4.8% 185 (16) 30 14
MARRIED WITH 5 100,000 20,000 3,742 3,525 (217) -5.8% 190 (27) 32 6

SINGLE 0 90,000 18,000 5,198 5,388 190 3.6% 109 299 (47) 251
MARRIED WITH 0 90,000 18,000 4,273 4,085 (188) -4.4% 150 (38) 28 (10)
MARRIED WITH 2 90,000 18,000 3,788 3,585 (203) -5.4% 165 (38) 30 (8)
MARRIED WITH 3 90,000 18,000 3,546 3,335 (211) -6.0% 170 (41) 32 (9)

SINGLE 0 80,000 17,000 4,433 4,588 155 3.5% 106 261 (39) 222
MARRIED WITH 0 80,000 17,000 3,508 3,340 (168) -4.8% 130 (38) 25 (13)
MARRIED WITH 2 80,000 17,000 3,023 2,840 (183) -6.1% 145 (38) 27 (11)
MARRIED WITH 3 80,000 17,000 2,781 2,590 (191) -6.9% 154 (37) 29 (8)

SINGLE 0 70,000 16,000 3,668 3,788 120 3.3% 103 223 (30) 193
MARRIED WITH 0 70,000 16,000 2,743 2,595 (148) -5.4% 124 (24) 22 (2)
MARRIED WITH 2 70,000 16,000 2,258 2,095 (163) -7.2% 135 (28) 24 (4)
MARRIED WITH 3 70,000 16,000 2,016 1,845 (171) -8.5% 140 (31) 26 (5)

SINGLE 0 60,000 14,000 2,988 2,968 (21) -0.7% 100 80 5 85


MARRIED WITH 0 60,000 14,000 2,063 1,905 (158) -7.6% 120 (38) 24 (14)
MARRIED WITH 1 60,000 14,000 1,864 1,655 (209) -11.2% 125 (84) 31 (53)

MARRIED WITH 0 85,000 78,000 0 3,175 3,175 140 3,315 0 3,315

(A) - SALES TAX NUMBERS WERE BASED ON ESTIMATES PROVIDED BY MAINE REVENUE SERVICES.

(1) - BASED ON MAY 1, 2009 MAINE LAWWITH NO INFLATION ADJUSTMENT FOR 2010.
EXHIBIT - ACTUAL 2009 RETURNS EXHIBIT 1
ME_TAX_LD1495-4-20-10
COMPARISON OF CURRENT ME TAX TO LD 1495 - 11 ACTUAL RETURNS FILED IN 2009

MAINE (A) 2010 2011 2012 2013


MAINE ADJUSTED (1) ESTIMATED MAINE MAINE MAINE MAINE
ADJUSTED ITEMIZED LD 1495 INCOME SALES TAX TOTAL TAX TOTAL TAX TOTAL TAX TOTAL TAX
FILING NUMBER OF GROSS DEDUCTIONS MAY 2009 YEAR 2010 TAX (DECREASE) % DECREASE INCREASES (DECREASE) (DECREASE) (DECREASE) (DECREASE)
STATUS EXEMPTIONS INCOME OR STD DED TAX LAW PROPOSED TAX INCREASE INCREASE LD 1495 INCREASE INCREASE INCREASE INCREASE
------------------ ------------------- --------------------- ----------------------- --------------------- ----------------------- --------------------- --------------------- ---------------------- ----------------------- ----------------------- ---------------------- -----------------------

MARRIED 5 106,392 21,465 4,645 4,456 (189) -4.1% 190 1 40 78 120

MARRIED 3 84,698 38,676 1,866 2,901 1,035 55.5% 140 1,175 1,197 1,220 1,243

MARRIED 3 81,383 STD DED 4,021 3,736 (285) -7.1% 140 (145) (91) (32) 29

MARRIED 2 79,148 74,228 0 2,707 2,707 > THAN 27,000% 128 2,835 2,838 2,842 2,845

MARRIED 2 64,665 STD DED 2,842 2,648 (194) -6.8% 120 (74) (19) 39 100

SINGLE (ST) 0 16,964 STD DED 411 403 (8) -1.9% 56 48 68 90 108

SINGLE 1 20,907 STD DED 487 409 (78) -16.0% 66 (12) 9 31 48

SINGLE 1 29,800 STD DED 1,127 1,022 (105) -9.3% 75 (30) 1 31 48

SINGLE 0 31,390 STD DED 1,262 1,149 (113) -9.0% 85 (28) 3 35 63

SINGLE 1 131,862 STD DED 9,802 8,571 (1,231) -12.6% 146 (1,085) (1,052) (1,018) (989)

HEAD OF
HOUSEHOLD 2 36,077 STD DED 939 759 (180) -19.2% 100 (80) (49) (19) 13

------------------------ ------------------------ --------------------------------------------------- ------------------------------------------------ ------------------------------------------------------------------------


27,402 28,761 1,359 5.0% 1,246 2,605 2,945 3,297 3,628

PERCENTAGE OF TAXPAYERS WITH ATX DECREASE 82% 64% 36% 27% 9%

(A) - SALES TAX NUMBERS WERE BASED ON ESTIMATES PROVIDED BY MAINE REVENUE SERVICES.

(1) - BASED ON MAY 1, 2009 MAINE LAWWITH NO INFLATION ADJUSTMENT FOR 2010.

(ST) - SINGLE TAXPAYER CLAIMED BY PARENT, SO DOES NOT GET AN EXEMPTION DEDUCTION.
EXHIBIT 2
COMPARISON OF OLD MAINE TAX LAW TO LD 1495 - YEARS 2010-2014

(2) (1) (1) (1)


ESTIMATED 2010 2011 2012 2013 2010-2013
( Y- YES) NUMBER (1) MAY 2009 LD 1495 TAX SALES TAX NET TAX NET TAX NET TAX NET TAX NET TAX
FILING OVER OF MAY 2009 EFFECTIVE YEAR 2010 (DECREASE) INCREASES (DECREASE) (DECREASE) (DECREASE) (DECREASE) (DECREASE)
STATUS AGE 65 CHILDREN INCOME CURRENT TAX TAX RATE TAX INCREASE LD 1495 INCREASE INCREASE INCREASE INCREASE INCREASE
--------------- ------------ --------------- ------------------- --------------------- --------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- ---------------------

MARRIED Y 0 70,000 3,108 4.44% 3,075 (33) 124 91 145 211 272 718
MARRIED Y 0 60,000 2,258 3.76% 2,275 17 120 137 191 253 293 873
MARRIED Y 0 50,000 1,525 3.05% 1,430 (95) 117 23 58 104 145 329
MARRIED Y 0 40,000 825 2.06% 780 (45) 108 64 99 145 186 493

SINGLE Y 0 35,000 1,450 4.14% 1,438 (12) 89 77 108 145 177 507
SINGLE Y 0 30,000 1,025 3.42% 978 (47) 85 38 58 84 105 285
SINGLE Y 0 25,000 676 2.70% 615 (61) 75 14 35 61 83 193
SINGLE Y 0 20,000 326 1.63% 290 (36) 66 30 41 56 67 194

MARRIED 0 70,000 3,295 4.71% 3,075 (220) 124 (96) (42) 16 77 (46)
MARRIED 1 70,000 3,053 4.36% 2,825 (228) 131 (97) (43) 15 77 (48)
MARRIED 2 70,000 2,811 4.02% 2,575 (236) 138 (98) (43) 15 76 (49)
MARRIED 0 60,000 2,445 4.08% 2,275 (170) 120 (50) 4 62 123 138
MARRIED 1 60,000 2,203 3.67% 2,025 (178) 127 (51) 3 48 89 89
MARRIED 2 60,000 1,980 3.30% 1,775 (205) 134 (71) (34) 6 47 (51)
MARRIED 0 50,000 1,679 3.36% 1,550 (129) 117 (12) 24 63 104 179
MARRIED 1 50,000 1,479 2.96% 1,300 (179) 124 (55) (19) 20 60 6
MARRIED 1 45,000 1,129 2.51% 975 (154) 119 (35) 1 40 80 86
MARRIED 1 40,000 779 1.95% 650 (129) 115 (14) 21 61 90 158
MARRIED 0 35,000 637 1.82% 575 (62) 104 42 60 80 100 282

SINGLE 0 40,000 1,994 4.98% 1,838 (156) 92 (64) (32) 0 28 (68)


SINGLE 0 35,000 1,569 4.48% 1,438 (131) 89 (42) (11) 21 49 17
SINGLE 0 30,000 1,144 3.81% 1,038 (106) 85 (21) 10 42 60 91
SINGLE 0 25,000 774 3.10% 675 (99) 75 (24) (2) 20 38 32
SINGLE 0 20,000 424 2.12% 350 (74) 66 (8) 13 35 53 93

LD 1495 DOES NOT ADJUST FOR INFLATION UNTIL 2014, WHILE OLD LAW ADJUSTED EVERY YEAR.
(1) - MAINE LAW AS OF MAY 1, 2009 WHICH HAD FULL INFLATION ADJUSTMENT FOR 2009. ASSUMED 2.5% INFLATION ADJUSTMENT FOR YEARS 2011, 2012 & 2013.
(2) - THE SALES TAX INCREASE IS AN ESTIMATE BY MAINE REVENUE SERVICES. THE SALES TAX FOR 2011-2013 IS BASED ON 2010 PLUS YEARLY 2.5% INFLATION INCREASE.
EXHIBIT 3 EXHIBIT 3
COMPARISON OF MAY 2009 MAINE TAX LAW TO LD 1495 - YEAR 2010 ONLY FOR TAXPAYERS THAT ITEMIZE DEDUCTIONS

(A)
(1) ESTIMATED MAINE FEDERAL 2010
MAINE ADJUSTED CURRENT LD 1495 INCOME SALES TAX TOTAL TAX INCOME TAX TOTAL TAX
NUMBER OF ( Y- YES) ITEMIZED MAY 2009 EFFECTIVE YEAR 2010 TAX (DECREASE) % DECREASE INCREASES (DECREASE) (DECREASE) (DECREASE)
FILING STATUS CHILDREN OVER AGE 65 INCOME DEDUCTIONS TAX LAW TAX RATE PROPOSED TAX INCREASE INCREASE LD 1495 INCREASE INCREASE INCREASE
------------------------------ ------------------- --------------------- --------------------- ----------------------- --------------------- ------------------ ----------------------- --------------------- --------------------- ------------------------- ------------------------- -------------------------- -------------------------

MARRIED WITH 1 2,600,000 50,000 216,063 8.31% 177,225 (38,838) -18.0% 1,500 (37,338) 0 (37,338)
MARRIED WITH 1 1,000,000 50,000 80,063 8.01% 67,625 (12,438) -15.5% 1,000 (11,438) 0 (11,438)
MARRIED WITH 1 600,000 40,000 45,511 7.59% 40,225 (5,286) -11.6% 750 (4,536) 0 (4,536)
MARRIED WITH 1 400,000 37,500 28,723 7.18% 26,525 (2,198) -7.7% 550 (1,648) 0 (1,648)
MARRIED WITH 1 300,000 33,500 20,563 6.85% 19,675 (888) -4.3% 450 (438) 0 (438)
MARRIED WITH 1 200,000 27,500 12,573 6.29% 12,125 (448) -3.6% 348 (100) 0 (100)

SINGLE 0 150,000 25,000 9,703 6.47% 9,750 47 0.5% 165 212 (13) 199
MARRIED WITH 1 150,000 25,000 8,536 5.69% 8,250 (286) -3.3% 255 (31) 71 41
MARRIED WITH 1 150,000 30,000 8,111 5.41% 8,125 15 0.2% 255 270 (4) 266
MARRIED WITH 1 150,000 35,000 7,686 5.12% 8,125 440 5.7% 255 695 (110) 585
MARRIED WITH 1 150,000 40,000 7,261 4.84% 8,125 865 11.9% 255 1,120 (216) 903

SINGLE 0 125,000 23,000 7,748 6.20% 8,125 377 4.9% 145 522 (106) 416
MARRIED WITH 1 125,000 23,000 6,581 5.26% 6,360 (221) -3.4% 214 (7) 55 49
MARRIED WITH 1 125,000 30,000 5,986 4.79% 6,125 140 2.3% 214 354 (35) 319
MARRIED WITH 1 125,000 35,000 5,561 4.45% 6,125 565 10.2% 214 779 (141) 637
MARRIED WITH 1 125,000 40,000 4,893 3.91% 6,125 1,232 25.2% 214 1,446 (308) 1,138

SINGLE 0 100,000 20,000 5,878 5.88% 6,188 310 5.3% 120 430 (77) 352
MARRIED WITH 1 100,000 20,000 4,711 4.71% 4,525 (186) -3.9% 170 (16) 46 31
MARRIED WITH 1 100,000 25,000 4,286 4.29% 4,250 (36) -0.8% 170 135 5 140
MARRIED WITH 1 100,000 30,000 3,861 3.86% 4,125 265 6.9% 170 435 (40) 395
MARRIED WITH 1 100,000 35,000 3,436 3.44% 4,125 690 20.1% 170 860 (103) 756
MARRIED WITH 1 100,000 40,000 3,011 3.01% 4,125 1,115 37.0% 170 1,285 (167) 1,117

SINGLE 0 80,000 18,000 4,348 5.44% 4,588 240 5.5% 106 346 (60) 286
MARRIED WITH 1 80,000 18,000 3,181 3.98% 3,035 (146) -4.6% 133 (13) 22 9
MARRIED WITH 1 80,000 25,000 2,586 3.23% 2,650 65 2.5% 133 198 (10) 188
MARRIED WITH 1 80,000 30,000 2,161 2.70% 2,375 215 9.9% 133 348 (32) 315
MARRIED WITH 1 80,000 35,000 1,736 2.17% 2,100 365 21.0% 133 498 (55) 443

SINGLE 0 70,000 17,000 3,583 5.12% 3,788 205 5.7% 103 308 (51) 256
MARRIED WITH 1 70,000 17,000 2,416 3.45% 2,290 (126) -5.2% 124 (2) 19 17
MARRIED WITH 1 70,000 23,000 1,934 2.76% 1,960 26 1.3% 124 150 (4) 146
MARRIED WITH 1 70,000 27,000 1,654 2.36% 1,740 86 5.2% 124 210 (13) 197
MARRIED WITH 1 70,000 30,000 1,311 1.87% 1,725 415 31.6% 124 539 (62) 476

SINGLE 0 60,000 15,000 2,903 4.84% 2,913 10 0.3% 100 110 (2) 107
MARRIED WITH 1 60,000 15,000 1,794 2.99% 1,600 (194) -10.8% 120 (74) 29 (45)
MARRIED WITH 1 60,000 20,000 1,444 2.41% 1,325 (119) -8.2% 120 1 18 19
MARRIED WITH 1 60,000 25,000 1,094 1.82% 1,050 (44) -4.0% 120 76 7 83

MARRIED WITH 0 Y 60,000 STD DED 2,258 3.76% 2,275 17 0.7% 115 132 0 132
MARRIED WITH 0 Y 40,000 STD DED 825 2.06% 780 (45) -5.4% 105 61 0 61
SINGLE 0 Y 35,000 STD DED 1,475 4.21% 1,438 (38) -2.5% 87 50 0 50
MARRIED WITH 1 40,000 STD DED 779 1.95% 650 (129) -16.6% 108 (21) 0 (21)
MARRIED WITH 1 45,000 STD DED 1,129 2.51% 975 (154) -13.6% 115 (39) 0 (39)
SINGLE 0 32,000 STD DED 1,314 4.10% 1,198 (116) -8.8% 85 (31) 0 (31)

MARRIED WITH 0 Y 85,000 78,000 0 0.00% 3,175 3,175 140 3,315 0 3,315

(A) - SALES TAX NUMBERS WERE BASED ON ESTIMATES BY MAINE REVENUE SERVICES.

(1) - BASED ON MAY 2009 MAINE LAW, THE 2010 INFLATION ADJUSTMENTS WERE ASSUMED TO BE ZERO.
EXHIBIT 4
ME_TAX_LD1495R8-14-09

COMPARISON OF MAINE TAX FOR RESIDENTS VS. NON RESIDENTS UNDER LD 1495 - YEAR 2010

(1) NON
ITEMIZED NUMBER MAINE NON RESIDENT
FILING DEDUCTIONS OF MAINE RESIDENT RESIDENT TAX TAX AS % OF
STATUS OR STD CHILDREN INCOME TAX LD 1495 TAX LD 1495 DIFFERENCE RESIDENT TAX
--------------- --------------------- --------------- ------------------- -------------------- -------------------- -------------------- --------------------

MARRIED 33,000 2 275,000 17,963 17,963 0 0


MARRIED 24,000 2 150,000 8,055 9,750 1,695 121.0%
MARRIED 20,000 2 100,000 4,275 6,500 2,225 152.0%

MARRIED STD 2 70,000 2,575 4,550 1,975 176.7%


MARRIED STD 2 60,000 1,775 3,900 2,125 219.7%
MARRIED STD 1 50,000 1,300 3,250 1,950 250.0%
MARRIED STD 2 40,000 400 2,600 2,200 650.0%

SINGLE STD 0 35,000 1,438 2,275 838 158.3%


SINGLE STD 0 30,000 1,038 1,950 913 188.0%
SINGLE STD 0 25,000 675 1,625 950 240.7%
SINGLE STD 0 20,000 350 1,300 950 371.4%

NON
ITEMIZED NUMBER RESIDENT NON TAX % TAX
FILING DEDUCTIONS OF MAINE OLD MAINE RESIDENT INCREASE INCREASE
STATUS OR STD CHILDREN INCOME LAW TAX (LD 1495) (DECREASE) (DECREASE)
--------------- --------------------- --------------- ------------------- --------------------- -------------------- -------------------- --------------------

MARRIED 33,000 2 275,000 18,238 17,963 (276) -1.5%


MARRIED 24,000 2 150,000 8,378 9,750 1,372 16.4%
MARRIED 20,000 2 100,000 4,468 6,500 2,032 45.5%

MARRIED STD 2 70,000 2,811 4,550 1,739 61.9%


MARRIED STD 2 60,000 1,980 3,900 1,921 97.0%
MARRIED STD 1 50,000 1,479 3,250 1,771 119.7%
MARRIED STD 2 40,000 606 2,600 1,994 329.0%

SINGLE STD 0 35,000 1,569 2,275 707 45.0%


SINGLE STD 0 30,000 1,144 1,950 807 70.5%
SINGLE STD 0 25,000 774 1,625 851 109.9%
SINGLE STD 0 20,000 424 1,300 876 206.6%

(1) - LD 1495 DOES NOT ALLOW THE HOUSEHOLD CREDIT FOR NON RESIDENTS, SO TAX IS FLAT 6.5% OF
THE FIRST $250,000 AND 6.85% ON INCOME OVER $250,000.
EXHIBIT 5
ME_TAX_LD1495R4-20-10

COMPARISON OF MAINE TAX FOR 2006 VS. 2009 & IMPACT OF INFLATION ADJUSTMENTS

ITEMIZED NUMBER MAINE MAINE %


FILING DEDUCTIONS OF MAINE INCOME TAX INCOME TAX TAX TAX
STATUS OR STD CHILDREN INCOME 2006 2009 REDUCTION REDUCTION
--------------- --------------------- --------------- ------------------- -------------------- -------------------- -------------------- --------------------

MARRIED 50,000 1 1,000,000 78,791 78,661 130 0.2%

MARRIED 33,000 1 275,000 18,611 18,481 130 0.7%

MARRIED 24,000 1 120,000 6,201 6,071 130 2.1%

MARRIED STD 1 60,000 2,410 2,203 207 8.6%

MARRIED STD 1 45,000 1,265 1,129 136 10.8%

WHAT THE ABOUT ILLUSTRATES IS THAT MAINE'S OLD LAW WHICH INDEXED BOTH THE TAX BRACKETS AND THE
STANDARD DEDUCTION HAS A MUCH GREATER PERCENTAGE TAX REDUCTION ON LOWER INCOME LEVELS THAN
WITH HIGHER INCOME LEVELS.

IN JUNE OF 2010, IN AN EFFORT TO BALANCE THE 2010 & 2011 STATE BUDGET, THE GOVERNOR PROPOSED TO
ELIMINATE INDEXING FOR TWO YEARS. THIS CHANGE WAS ESTIMATED TO RAISE INCOME TAXES BY $45 MILLION.
THE REPUBLICANS REDUCED THE $45 MILLION DOWN TO $10.5 MILLION IN YEAR 2010. HOWEVER THE IMPACT
OF THIS TAX INCREASE ON 2009 TAX RETURNS WILL BE DISPROPORTIONATELY ASSESSED AGAINST LOWER INCOME
TAXPAYERS.

THE FOLLOWING ILLUSTRATES THE HOW THE 10.5 MILLION TAX INCREASE IMPACTS THE ABOVE TAXPAYERS
AND HOW IT WOULD BE ALLOCATED IF ALL TAXPAYERS WERE GIVEN THE SAME % INCREASE.

(1) 2009
ITEMIZED NUMBER MAINE MAINE 2009 PROPORTIONAL TAX INCREASE
FILING DEDUCTIONS OF MAINE INCOME TAX INCOME TAX TAX .7% TAX AS % OF FAIR
STATUS OR STD CHILDREN INCOME NEW 2009 OLD 2009 INCREASE INCREASE TAX INCREASE
--------------- --------------------- --------------- ------------------- -------------------- -------------------- -------------------- ------------------------ ---------------------

MARRIED 50,000 1 1,000,000 78,690 78,661 30 551 5.4%

MARRIED 33,000 1 275,000 18,510 18,481 30 129 22.8%

MARRIED 24,000 1 120,000 6,100 6,071 30 42 69.4%

MARRIED STD 1 60,000 2,232 2,203 29 15 188.1%

MARRIED STD 1 45,000 1,145 1,129 16 8 202.5%

(1) - TO RAISE $10.5 MILLION COULD BE RAISE MORE FAIRLY BY A PROPORTIONAL .7% SURCHARGE.
($1.5 BILLION TOTAL INCOME MAINE INCOME TAX FOR 2009 TIMES .7% = $10.5 MILLION)

ANOTHER WAY TO EXPLAIN THE DISPROPORTIONAL ALLOCATION OF THE $10.5 MILLION TAX INCREASE IN 2009 IS THAT THE TOP
10% OF MAINE TAXPAYERS CURRENTLY PAY 57% OF MAINE INCOME TAXES, SO THESE TAXPAYERS SHOULD PAY ABOUT $6 MILLION
OF THE $10.5 MILLION. BUT THEY WILL ONLY PAY ABOUT $2 MILLION OR ONLY 1/3 OF THEIR FAIR SHARE.