Baldacci Extends Welfare by Making Earned Income Tax Credit Refundable.

The Governor signed a new tax bill that, among other things, makes the Earned Income Credit refundable. Refundable tax credits are one way governments extend social programs in a secretive way.

AUGUSTA, Maine — Seeking to avoid a potential veto by Gov. John Baldacci, lawmakers approved last-minute changes to a tax restructuring bill that aims to reduce income taxes for Maine residents while broadening the sales tax.

Baldacci formally proposed the changes Thursday afternoon after allowing a similar tax overhaul measure passed by the Legislature to linger on his desk for nearly a week. [Full Story]