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Phil Harriman, a former town councilor and state senator from Yarmouth, is the founding partner of Lebel & Harriman, a financial services firm. Ethan Strimling, a former mayor and state senator from Portland, is the president of Swing Hard. Turn Left, which promotes progressive policy at the local, state and national levels.
Phil: Alright Strim, in our annual predictions column, you and I agreed that paid family medical leave’s time had finally come for Mainers. Although you predicted the Legislature would get it done, I said it would happen at the ballot box. But either way, we both agreed the policy is long overdue. Today, I want to debate the details of how we get there.
Ethan: Sounds like you want to debate the devil in those details?
Phil: I want to debate the devil right out of those details given they usually impact the local small-business person more than larger businesses.
Ethan: Before diving in, pray, do tell, why are you standing on the side of working families? A side where so few of your Republican colleagues dare to tread.
Phil: Because, taking care of your family — a sick parent or a newborn baby or a recently disabled spouse or a sibling going into a mental health crisis — should never be a choice influenced by whether you can put food on the table. Also, on a purely practical level, I believe this is going to pass, so engaging in the policy debate is the best way to find a balance between families and small businesses.
Ethan: Good enough.
Phil: OK, how about we start with the current ideas before the Legislature. Basically, a payroll tax would be imposed and split between the employee and the employer to provide 80 percent to 90 percent of wages, capped at 120 percent of the state median, for 12 weeks. It is likely to include an exemption for small businesses of some size, perhaps 15 employees or less, but allow everyone to opt in.
Ethan: First off, there should be no exemption. Just because an employee works for a smaller business doesn’t mean they need the leave any less. And many small LLCs are extremely profitable. Just like unemployment insurance or workers comp, all employees, at all size businesses, should be fully covered. And, oh yeah, the employer should pay at least 90 percent of the tax assessed on these wages. Working families will already have to make do with less if a family emergency occurs.
Phil: While I agree that all employees should be treated equally, not all employers have equal cash flow. I’d stick with a 15-person exemption and a voluntary option for all to join should they choose. And this tax should be like Social Security — half employee and half employer.
Ethan: Just make sure you tax the millionaires the same as everyone else, unlike Social Security, which drops the percentage one pays as one’s income rises above $160,000.
Phil: In terms of the amount of wages, I am fine with 80 percent of what one earns as long as it is state tax free. I would include the recommended cap of 120 percent of the median income to keep the cost of the program manageable and still deliver a meaningful financial benefit for the family.
Ethan: The problem is that not all costs are the same across Maine. So 120 percent of the median may be too low for some families to survive in the region where they live. We should make the benefit up to 200 percent of median income (about $125,000), that way someone living in a higher-cost area would still be able to pay the rent.
Phil: I’m looking forward to seeing what the Legislature does with this bill.
Ethan: Me too. But, honestly, my sense is this will all come down to Gov. Janet Mills. Her statements so far have been more about protecting businesses than about caring for families, and if she doesn’t get behind something strong, your prediction of it passing at the ballot box will come true.
Phil: Yet another example of energized voters forcing their government to give them what they want.
