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What's going on with tax reform?

 After a flurry of public activity on tax reform late last week, things moved behind closed doors as Democrats worked to find a way to get Gov. John Baldacci to support their tax reform plan.

 It appears they've reached an agreement and House Democrats are on board. If the Senate Democrats agree, a new bill could be moved through the process as soon as this afternoon.

 The Associated Press reported today that Baldacci wants to lower the income tax rate for most of us from 8.5 to 6.5 percent, but he wants to boost the top income tax rate to 6.85 percent on income above $250,000. That should somewhat appease critics who have said the tax break for the rich is too generous.

 Also, Baldacci doesn’t want to expand the 5 percent sales tax to things such as skiing and golfing. He wants to get rid of the real estate transfer tax increase on homes that sell for more than $500,000.

 And he wants to add an earned income tax credit to help those with low incomes.

 The tax plan is one of the big remaining items left to deal with before Friday’s scheduled adjournment. Bonds and the highway budget are still unresolved as well.

Statehouse reporter Susan Cover plumbs the depths of Maine politics to bring you the scoop on candidates, elected officials, parties and rainmakers.

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