Maine legislature split on extending federal tax breaks
PHOTO CREDIT / WIKIMEDIA COMMONS
The Maine State Legislature is currently weighing their options for L.D. 1564 and whether tax breaks should should continue indefinitely.
Maine lawmakers are still weighing their options on L.D. 1564 — a bill that would adopt a group of federal tax breaks to the state level.
The Maine State Legislature agreed that federal tax breaks passed in December will apply to the state’s 2015 income tax, but they are split on whether to continue them indefinitely, according to The Kennebec Journal.
Democrats argue that the $19 million lost due to the tax cuts could be used to help fund pressing issues, including a number of problems plaguing Riverview Psychiatric Center due in part to its 2013 loss of federal certification that cost the center millions in funding.
“We have an ongoing crisis in Riverview [Psychiatric Center], dangerous overcrowding in our state’s jails, rising property taxes, debilitating substance abuse in our communities and inadequate funding for our children’s schools,” Rep. Adam Goode, D- Bangor, chairman of the house taxation committee, said in a statement.
Republicans argue that adopting the tax breaks on a long-term basis would provide a sense of security to Maine citizens and businesses that their tax burden wouldn’t increase.
“It is important that we adopt this tax policy for the long term, and not just make a temporary fix, because businesses and all Maine citizens need to know that we are serious about not raising their tax liability and, in effect, their cost of living here and doing business,” Maine Senate President Michael Thibodeau, R-Winterport, said in a written statement.
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