Study: Tax breaks exceed state spending
A legislative working group has found that the state gives away more in tax breaks than it spends on all state programs annually.
According to the working group, expenditures through tax breaks, credits and exemptions are estimated to be $6.6 billion for the current two-year budget period, $1 billion more than the state's budget, according to Capitol News Service. The group, chaired by Finance Commissioner Ellen Schneiter and including representatives from Maine Revenue Services, the Maine State Planning Office and other agencies, identified 11 economic development tax programs that warranted further oversight, and recommended the state measure their effectiveness and report on them every four years. The programs targeted for further analysis include the Business Equipment Tax Reimbursement program and tax credits that benefit as few as five taxpayers, according to the news service.
Schneiter yesterday discussed the results of the study with the Legislature's appropriations committee, and said further review of some programs would help determine if any of the programs were the deciding factor in a business's decision to locate or remain in Maine.
In total, Maine has 141 personal and corporate income and property tax reimbursement programs and 133 sales and excise tax exceptions or preferences, according to the news service.
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