One group of lawmakers wants to raise income taxes THIS YEAR on households making between $50,000 and $100,000 from 7.15 to 8.35 percent—a 14.4 percent increase, and for some making over $100,000, from 7.15 to 11.5 percent—a 38 percent increase.
Maine’s median income in 2019 was $57,918 according to the Census Bureau. Comparing that figure to the proposed rate changes, we see that these politicians want to raise taxes 14 percent on families making less than the state’s median income.
Another group wants to raise the top business tax rate from 8.93 to 12.4 percent—a more than 27 percent increase beginning in 2022.
These two bills were published this afternoon. Here’s what you need to know:
LD 495, “An Act To Improve Income Tax Progressivity by Establishing New Top Individual Income Tax Rates,” is sponsored by Representative OSHER of Orono. Cosponsored by Senator CHIPMAN of Cumberland and Representatives: COLLINGS of Portland, COPELAND of Saco, GRAMLICH of Old Orchard Beach, MORALES of South Portland, RECKITT of South Portland, ROEDER of Bangor, TEPLER of Topsham, WILLIAMS of Bar Harbor.
LD 495 “increases the tax rate on the current top bracket under the individual income tax from 7.15% to 8.35% and adds a new bracket of 11.15% on taxable income exceeding $100,000 for single individuals and married persons filing separately, $150,000 for heads of household and $200,000 for individuals filing married joint returns or surviving spouses.”
LD 501, “An Act To Amend Maine’s Corporate Income Tax by Increasing the Top Rate from 8.93 Percent to 12.4 Percent.” Representative BROOKS of Lewiston. Cosponsored by Representatives: COLLINGS of Portland, CRAVEN of Lewiston, GRAMLICH of Old Orchard Beach, TERRY of Gorham, Senator: CHIPMAN of Cumberland.
Recall that Governor Mills increased state spending by $800 million in her last budget; her next budget adds another $400 million in spending. She’s not cutting back.
There are 13 different lawmakers in total sponsoring these bills. They believe the state needs more of your money.
Links to the two bills are posted in the top of the comments, as well as our web page you can use to let the Taxation Committee know how these tax proposals would affect your family and business.