how does cutting maine income tax help our credit rating?

how will cutting our maine income tax help our credit rating?


Large TypePrint This StoryE-mail This StorySave This StoryMay 19

Moody’s threatens Maine’s debt rating
By Jessica Hall jhall@pressherald.com
Staff Writer


The outlook on nearly $500 million in Maine bonds was downgraded by a debt-rating agency just weeks before the state launches a bond offering.




Moody’s Investors Service cut the outlook from “stable” to “negative,” citing Maine’s weak financial reserves and high Medicaid costs.


The lower outlook, just weeks before a $55.8 million bond offering, creates the risk of a rating downgrade over the next 12 to 24 months, Moody’s said. That could increase the state’s borrowing costs, analysts said.


“The short-term impact is none. The long-term impact will depend on if we see any downgrade,” said Robert Lenna, executive director of the Maine Municipal Bond Bank.

I think that if you read this piece from "moody's investor service " and the new reply from standard and poor you can read between the lines their was some influence from the right.
But what I fail to see is how do you pay down your bills at home if your boss gives you a tax cut? really how much does it cost mainers to live in a state where its credit rating is poor? where their analysts say that maine has to little reserves now -is that the time to cut rate by 400 million? If we can do that then why couldn't we fund that 55 million in bonds ourselves and put 345 million on bills? or delay the cut for 6 months and take that revenue to fund that bond issue and put the remainder of 2hundred million in a surplus for a rainy day.
you know the reason as well as I do-to pay off the right!