The Fallacy of Tax Exportability

These days, everyone wants something for free, and the current discussions about tax reform by the Maine Legislature illustrate
that sentiment. While discussing tax reform, the notion of tax exportability, or the concept of enacting tax on services consumed
by visitors to the state in order to lower the tax burden on local residents, has become a politically popular concept. Tax exportability
has become en vogue to Maine policymakers thanks to the recent Brookings Institution report Charting Maine’s Future,
which outlined the concept as a way in which to lower Mainers’ tax burden.

Yet, the Brookings Institution's own nationally respected tax economist, Dr. William G. Gale, points out the failures of tax exportability.
Even though the concept of tax exportability is a proven failure, Maine politicians are currently pursuing the tax exportability
scheme.