Maine Democrats have released a counterproposal to Gov. Paul LePage’s sweeping tax reform package that’s embedded within his two-year $6.57 billion budget. Like the governor with his proposals, top Democrats have been hosting public meetings throughout the state to sell the tax plan they’re calling “A Better Deal for Maine.”Introduced in early April, the Democrats’ […]
Maine Democrats have released a counterproposal to Gov. Paul LePage's sweeping tax reform package that's embedded within his two-year $6.57 billion budget. Like the governor with his proposals, top Democrats have been hosting public meetings throughout the state to sell the tax plan they're calling “A Better Deal for Maine.”
Introduced in early April, the Democrats' plan offers a point-by-point alternative to Gov. LePage's plan. Which plan is truly the “better deal” is a political question that will occupy a good bit of the Legislature's attention, quite likely up to the session's statutory adjournment on June 17.
Both plans create a refundable sales tax fairness credit from $250 to $500 to offset the sales tax increases for low-income Mainers. Total value of the credit is estimated to be $71 million in fiscal year 2019.
The Democrats also embrace Gov. LePage's proposal for a “property tax fairness credit” expanding the credit that offsets high property taxes. The credit is designed to restore targeted property tax relief that was lost with the elimination of the “circuit breaker” program; its goal is to target property tax relief directly to Maine residents based on ability to pay. Both proposals carry a $58 million annual price tag.
For full text of the Democrats' plan go to ow.ly/M1R2c.
