Maine: David Farmer

AUGUSTA, Maine — Democratic leaders in the State House are gearing up for a major debate over tax reform next week on their proposal to collect fewer taxes from Maine residents and more from out-of-staters.

Lawmakers are considering a variety of tax-reduction measures this session dealing with everything from levies on new cars and trucks to the amount the state treasury skims from individuals’ paychecks.

At 1 p.m. Thursday, the Legislature’s Taxation Committee will hear public comments on a plan to replace Maine’s four-tier income tax structure, which has a top tax rate of 8.5 percent, with a flat tax of 6.5 percent. The bill’s authors predict that with the numerous tax credits built into the proposed system, most Mainers would pay substantially less than 6.

AUGUSTA, Maine — Gov. John Baldacci will focus largely on education, health care and opportunities in Maine’s energy industry during his State of the State address tonight.

The governor’s staff was tight-lipped Monday about specifics but said there will be several significant new initiatives in the speech, which he will deliver to a joint session of the Legislature beginning at 7 p.m.

“The governor is going to take a realistic look at the current state of the economy but he is also going to outline a strategic plan for recovery,” said Baldacci spokesman David Farmer. He described the speech as setting an “optimistic tone.

WASHINGTON — Senators grilled federal auditors Thursday on ways to prevent waste and fraud as the government doles out the first portions of a $787 billion economic stimulus package.

The Senate Committee on Homeland Security and Governmental Affairs is charged with the task of overseeing the billions of stimulus dollars aimed at saving and creating jobs and boosting consumer spending. Committee members asked federal inspectors how they would monitor the money, at least $58 billion of which already has been allocated to specific programs, according to the Office of Management and Budget.

Lawmakers said it could be difficult balancing efficiency with the need to spend the stimulus funds quickly, which most economists say is necessary if the money is to effectively boost the economy.

AUGUSTA, Maine — Opponents of a Maine law that tightened driver’s license requirements say they will attempt to repeal portions of the measure, which the Legislature approved last spring under pressure from the federal government.

The bill imposed several changes aimed at making driver’s licenses more secure. The changes were sought by Gov. John Baldacci to avert a showdown with the U.S. Department of Homeland Security, which contended Maine’s lax standards encouraged fraud.

But critics argued that the stricter requirements infringed on civil liberties.

Now opponents are hoping to repeal parts of the law. And they’re hoping the change to a Democratic presidential administration will result in changes to the national law, known as Real ID.