Voters overwhelmingly rejected a law passed last year to restructure the state's tax code. The law, which was on hold pending the referendum, would have lowered the state's top income tax rate from 8.5 % to 6.5 % and made up the lost revenue by broadening the sales tax.

Tammy Linnell voted "yes" on Question 1 to repeal the law and essentially keep the state's tax code the way it is.

"I have a lack of faith in the politicians in actually lowering my taxes", said Linnell just outside her Portland voting place Tuesday.

Linnell, a 46-year-old call center operator, also disliked lawmakers' idea of raising taxes on meals and lodging and by taxing previously exempt services and goods.

"It's going to make it harder for people like me who are living paycheck to paycheck to actually go out and go to the movies and go to eat or stop at Amatos and get a sandwich or get my car repaired even."

A coalition of the law's supporters, which included Governor Baldacci and the Maine State Chamber of Commerce, urged voters to uphold the law. They contend that 95% of Mainers would pay less in taxes - something that would attract employers to the state.

But opponents sought to establish doubt that Mainers would see much tax relief and say now is not the time to cut income taxes.

"It's a bad time in the economy, there's no new revenue coming in", says Republican state Senator David Trahan of Waldoboro led the campaign to get the question on Tuesday's ballot. Allies include the Maine Merchants Association and the Maine Association of Realtors.

"This idea of raising sales taxes to pay for it. I think Maine people saw through that really quickly. Why would you want to give more money to the state government to spend and expect them to give it back?"

But Crystal Canney of the "No on 1" campaign says one major issue was the complexity of the message.

"I know that we had a tough sell going into this, and were always hopeful and optimistic. I'm surprised it was by that large a margin."

Canney says that had the law been allowed to take effect last year, Mainers would have seen lower tax bills.

"Maine people were cheated out of $50 million of tax relief last year and they would have had it this year. And also for me, the real opportunity was the ability of this law to export some of the taxes to tourists", says Canney.

But members of the Maine tourism industry didn't think getting visitors to shoulder more taxes would be good for business. Thirty-one-year-old Nicholas Maravell runs a rickshaw business in Old Orchard Beach and Portland. He voted Yes on 1.

"I don't want to feel like I'm competing with a strained tourist dollar and if they're paying additional fees, I feel like they won't have enough money left in their pocket for me."

60-year-old Tim DiPaolo, on the other hand, felt very strongly that the reform law would benefit the state by redistributing the tax burden.

But DiPaolo, who recently retired from the Maine Army National Guard in South Portland, sees how some businesses might not feel the same way.

"It's unfortunate that not everyone comes out a winner. But the current system is not a winner -- without a change."

The law's supporters say they were hurt by the relatively low turnout of a primary election. They also say that the wording of Question 1 may have confused voters.

The Yes on One side says that the state will have to cut costs and grow the economy before it can lower the income tax. Supporters of the defeated law did not say whether they would come back with another attempt to restructure state taxes.