Mainebiz

W W W. M A I N E B I Z . B I Z 11 M AY 4 , 2 0 1 5 Main Security Surveillance and Capitol Computers said the two Augusta firms merged to form an IT services company. Healthy Northern Kennebec in Waterville was selected to participate in and receive funding through a new initiative known as SCALE (Spreading Community Accelerators through Learning and Evaluation). The organi- zation will receive up to $68,000 over 20 months. Ex-Camden charity head to pay $4.6M settlement A businessman has agreed to pay $4.6 million to the Camden charity that accused him of embezzling funds while serving as its leader. e Maine Public Broadcasting Network reported that in reaching the settlement with United Mid-Coast Charities, Russell "Rusty" Brace of Rockport admitted to commit- ting fraud, breaching his duty and con- verting the charity's money. e charity's civil lawsuit against Brace is being dropped as a result of the settlement, but a federal investigation is still underway. Union sues BIW over job description changes e largest union at Bath Iron Works is suing the shipyard over allegations that BIW's plan to change job descriptions is a violation of its contract with work- ers. e Bangor Daily News reported that e International Association of Machinists Union Local S6 filed the lawsuit in U.S. District Court in Portland. e union is contesting BIW's plan to settle the issue of changing job descriptions through third-party arbitra- tion. In defense of its arbitration plan, BIW said the changes in job descrip- tions would reduce the need to switch employees for different tasks. BIW's plan to change job descriptions is part of a larger effort to cut down on costs in order to compete with other shipyards for future shipbuilding projects from the federal government, including a com- petitive U.S. Coast Guard contract. Portland firm to expand Downeast 4G coverage Portland-based Wireless Partners LLC said it is planning to expand high- speed cellular and broadband service to underserved Downeast areas. e telecommunications firm said the 4G LTE expansion is moving forward after it was recently approved as a Pine Tree Development Zone company by the Maine Department of Economic and Community Development. In addition, the firm recently hired Michael J. Harder, a former Oxford Networks executive, as its new chief financial officer. Wireless Partners said those two developments are advancing its effort to expand cellu- lar network capabilities in rural eastern Hancock and Washington counties. N O T E W O R T H Y M I D C O A S T & D O W N E A S T Beal's Lobster Pier in Southwest Harbor was named the exclusive provider of lobster and lobster rolls for the Portland Sea Dogs at Hadlock Field in Portland. The U.S. Small Business Administration announced Bitzy Baby, a juvenile safety product com- pany in Brunswick, as a finalist in the InnovateHER Business Challenge, a nationwide competition for entrepre- neurs to develop products and ser- vices to enhance the lives of women and their families. The First Bancorp in Damariscotta announced unaudited results for the three months ended March 31. Net in- come was $4.2 million, up $747,000, or 21.8%, from the first quarter of 2014. Earnings per common share were 39 cents, up 7 cents, or 21.9%, from the first quarter of 2014. Business contest announced for Katahdin area e Maine Small Business Development Centers is holding a new business plan competition for small businesses and entrepreneurs in Millinocket, East Millinocket and Medway. Called the Katahdin Business Plan Challenge, the competition aims to support sustain- able business growth in the Katahdin Region by awarding three contestants up to $7,500 in professional services. e competition calls for contestants to create a business plan that will help start or grow their business. e busi- ness plan competition is accepting applications until May 15, and the three winners will be announced by July 20. M aine Democrats have released a counterproposal to Gov. Paul LePage's sweeping tax reform package that's embedded within his two-year $6.57 billion budget. Like the governor with his proposals, top Democrats have been hosting public meetings throughout the state to sell the tax plan they're calling "A Better Deal for Maine." Introduced in early April, the Democrats' plan offers a point-by-point alternative to Gov. LePage's plan. Which plan is truly the "better deal" is a political question that will occupy a good bit of the Legislature's attention, quite likely up to the session's statutory adjournment on June 17. Here's a comparison of the two plans provided in the Democrats' 16-page proposal: P O L I T I C S & C O. B Y J A M E S M C C A R T H Y Democrats offer counterproposal to governor's tax reform package Both plans create a refundable sales tax fair- ness credit from $250 to $500 to offset the sales tax increases for low-income Mainers. Total value of the credit is estimated to be $71 million in fiscal year 2019. e Democrats also embrace Gov. LePage's proposal for a "property tax fairness credit" expanding the credit that offsets high property taxes. e credit is designed to restore targeted property tax relief that was lost with the elimination of the "circuit breaker" program; its goal is to target property tax relief directly to Maine residents based on ability to pay. Both proposals carry a $58 million annual price tag. LePage plan Democrats' plan Income tax relief 50% goes to top 10% 98% goes to bottom 95% Sales tax rate Increases to 6.5% Meals rate drops to 6.5% Lodging rate set at 8% Keeps rate at 5.5% Keeps meals rate at 8% Adopts LePage 8% lodging rate Sales tax base Broadens items subject to sales tax Adopts the LePage plan Homestead exemption Doubles for elderly; eliminates for under 65 Doubles exemption for all Revenue sharing $62 million in 2016; eliminates it in 2017 Increases to $80 million both years Estate tax Increases exclusion in 2016, then eliminates it No changes to current law Nonprofit tax Requires municipalities to tax nonprofits on property greater than $500,000 Rejects taxes on nonprofits Corporate income tax Reduces rates gradually, from the current 8.93% to 7.5% by 2021 No changes to current rates; closes loophole on offshore tax havens Pensions Exempts military pensions from income tax, increases exemptions for non-military pensions Exempts military pensions from income tax and maintains current law on other pension exemptions Telecom tax Transfers tax collection to municipalities No changes to current law Tobacco No changes to current law Equalizes tobacco taxes for all tobacco products For full text of the Democrats' plan go to ow.ly/M1R2c @ M I D C O A S T & D O W N E A S T N O R T H E R N & E A S T E R N

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