Upside-down tax plan, missed opportunity, and unnecessary and harmful cuts in the governor’s budget proposal

January 13, 2017 by
Sarah Austin

Sarah Austin

At a time when Maine families are falling out of the middle-class, when experienced workers need new skills to secure good paying jobs in a modern economy, and when state infrastructure is in need of improvement and expansion, the state budget presents an opportunity to solve shared problems and return our quality of life to the way life should be.

Governor LePage’s final biennial budget, released last week, squanders this opportunity and instead creates new tax breaks for the wealthy and large corporations that are paid for by stripping funding from our schools, shifting more costs onto Maine communities, and increasing taxes on low- and middle-income Mainers. Lawmakers should reject the governor’s budget and instead build a plan that strengthens the economic foundations of a prosperous future for all Mainers, not just those at the top.

When fully phased in, the governor’s tax plan increases taxes for households with income below $92,000 and gives a $22,665 tax cut to households with income over $384,000. The tax proposal further reduces state resources by eliminating the estate tax and making cuts to the corporate income tax that will benefit the wealthy and powerful.

Not only does the governor’s lopsided tax proposal increase taxes for the vast majority of Mainers, it drastically reduces the amount of resources available to invest in the foundations of a thriving economy. The governor’s proposal cuts services communities rely on and pushes costs for education and other services onto cities and towns just two months after Mainers approved more state funding for education paid for by a tax on wealthy households.

The governor’s budget reduces funding for K-12 education, reduces access to health care for parents, wipes out funding for family planning services, eliminates 500 state positions that provide important services to communities like serving Mainers with disabilities, scraps Head Start funding, and cuts programs that help Mainers find work.

The state can continue providing the important services the governor proposes to cut with available revenue and increase investment in improving our economy if we make no changes to the existing tax code. However, the governor’s proposed tax breaks for the rich and powerful take money away from investing in our future and shift costs onto low- and moderate-income Mainers.

Nowhere in the governor’s budget is a plan to move Maine’s economy and Maine families forward. Lawmakers must reject the governor’s proposal and put forward a plan to address shared priorities and begin to solve problems our state faces.

10 Responses to “Upside-down tax plan, missed opportunity, and unnecessary and harmful cuts in the governor’s budget proposal”
  1. […] of the governor’s tax plan for Maine families looks quite different. The key take away from MECEP’s analysis, summarized in the chart below, is that the governor’s upside-down tax plan will raise taxes on […]

  2. […] Graphic from Sarah Austin’s January 13, 2017 blog post, “Upside-down tax plan, missed opportunity, and unnecessary and harmful cuts in the governor’s bu… […]

  3. […] communities or schools, they just pay for costly tax breaks for the rich. The full impact of the governor’s tax changes is a $22,650 tax break for the top one percent and a tax increase for the 80 percent of Maine […]

  4. […] surcharge to apply to all taxable income, for a combined overall rate of 5.75 percent. The biggest beneficiaries, by far, of his flat tax plan are the state’s wealthiest residents. In fact, the average […]

  5. […] LePage’s budget proposal offers tax breaks worth $23,000 annually to Maine’s 1%, while asking homeowners to pay an average of $300 more in already historically-high property taxes. […]

  6. […] LePage’s budget proposal offers tax breaks worth $23,000 annually to Maine’s 1%, while asking homeowners to pay an average of $300 more in already historically-high property taxes. […]

  7. […] Gov. Paul LePage seems intent on undoing voters’ will with his final biennial budget, which gives tax cuts for large corporations and the wealthy and cuts public school funding. Comparing per pupil spending with three neighboring states […]

  8. […] LePage’s budget proposal offers tax breaks worth $23,000 annually to Maine’s 1%, while asking homeowners to pay an average of $300 more in already historically-high property taxes. […]

  9. Thank you for your update on the current budget. Obviously Gov. Lepage’s priorities are totally in favor of continuing to remove more families from the middle class with increases in taxes and decreases in health, employment and educational programs that enable Mainers to improve their lives. Conversely, LePage would like to decrease taxes and other measures to help those in the highest income brackets. We must work hard to help those citizens with the most need.

  10. […] loss of hundreds of millions of dollars in federal money, impacting all sectors of the economy. At a time when Governor LePage proposes to give away millions in tax breaks for the wealthy at the e…, President Trump is copying the governor’s playbook. His budget hollows-out federal programs in […]

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