With passage of L.D. 2400, An Act to Clarify Maine's Tax Laws Regarding Mutual Fund Companies, Maine is poised to expand this industry within the state. The new law will only tax a mutual fund company for business conducted in the state. Far too often changes in public policy do not move as fast as changes in the business world. For the states that do not recognize the changing business climate, they will be left behind. In this case, the Maine Legislature acted quickly and decisively and we set the stage for Putnam and possibly other mutual fund companies to enter this state.
Maine has to be aware of the shifting economic landscape and react accordingly.
We must use our tax policies as economic tools, or they will work against our economic growth as a tax disincentive. The infrastructure in Maine is solid for continued growth on this and other technology-based sectors.