Legislature passes flat-tax bill
In what could be one of its final actions, the 125th Legislature approved a Republican-backed bill that would move the state closer to a flat income tax.
The bill would gradually lower the income tax rate to a flat 4%, according to The Associated Press. The current rate of 8.5% is slated to drop to 7.95% in January. The tax cut would be partially funded by the income tax relief account in the state's rainy day fund. But Democrats, who opposed the measure, argued that funding would not be sufficient and would leave the next Legislature with a revenue shortfall.
The bill currently awaits action from Gov. Paul LePage. Although the Legislature adjourned for the summer, The AP reported that leaders left open the possibility of calling lawmakers back, should LePage choose to veto this bill or others awaiting action.
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