Setting the Record Straight on the Impacts of Governor LePage’s Tax Plan

January 18, 2017 by
Garrett Martin blog 11-16-2015

Garrett Martin

The Maine Sunday Telegram’s (MST) recently published, above the fold, front page story on the impacts of Governor LePage’s tax plan comes up short in its analysis of the costs and benefits to Maine families of the LePage tax plan. Aside from overstating the benefits from proposed income tax changes, the article fails to account for the impact of proposed sales and property tax changes on the bottom … Read the rest

No Communities Will Lose Education Funding as a Result of Question 2

October 19, 2016 by
Garrett Martin blog 11-16-2015

Garrett Martin

Don’t be deceived Sebago, Lincolnville, Greenwood, Bremen, Newry, Machiasport, and Jonesport. Despite Maine Heritage Policy Center’s (MHPC) bogus claim, a “Yes” vote on Question 2 will not cause you to lose education funding. In fact, you likely stand to gain funding if Question 2 passes.

Towns that lose education funding do so when they have a drop in student enrollment or an increase in property values. Question Read the rest

Focus on sales tax increases obscures the reality of a better deal for Maine people

January 11, 2016 by

Garrett Martin blog 11-16-2015Last year’s budget deal reduced taxes for 83% of Mainers. But the changes don’t happen all at once. And as the Maine media has reported, new sales taxes, potentially some of the least popular provisions of the bipartisan deal, went into effect on January 1. Taxpayers won’t fully realize more popular provisions – income tax cuts for nearly 9 out of every 10 Maine families and property tax cuts … Read the rest

Health Insurance Coverage in Maine: Heading in the Wrong Direction, Particularly for Children

September 17, 2015 by

New Census Bureau data released yesterday paint a bleak picture for Maine when it comes to improving access to affordable health coverage.

Maine is the only state that has not experienced an increase in the percentage of people with health insurance coverage since passage of the Affordable Care Act (ACA) in 2010. The new data also show that Maine currently ranks 24th in the nation in percentage of those with … Read the rest

Latest Budget Deal modestly improves Maine’s tax system progressivity, future revenue adequacy less certain

June 16, 2015 by

Today, state legislators released details of a budget deal that, if passed, would avoid a state government shutdown. The deal includes significant changes to Maine’s tax code. The proposal:

  • Restructures the state’s tax brackets and rates;

  • Increases the standard deduction this year but then phases it out;

  • Phases out itemized deductions for upper income taxpayers;

  • Doubles the homestead exemption for all Maine resident homeowners;

  • Maintains the current 5.5% sales tax

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The one question Republican legislators need to answer

May 22, 2015 by

Last Friday legislative Republicans released their tax plan for the coming two-year budget cycle. In reference to the Republican plan, Maine people deserve an answer to one specific question:

“The legislative Republicans’ tax proposal takes money from poor and working class Mainers and gives it to the wealthy. Is this by design or by mistake?”

Under the Republican plan, Mainers with incomes less than $57,000 get a tax increase. That’s … Read the rest

Where tax fairness is concerned, the legislative Republicans’ tax plan is the worst of all

May 19, 2015 by

Republican legislators released their plan for overhauling Maine’s tax system last week. Yesterday MECEP posted a chart comparing the distributional impacts of the Republican and Democratic plans. The key takeaway from that chart was that Mainers whose income is less than $89,000 – the bottom 80% of all Maine taxpayers – fare better on average under the Democratic plan, while the top 20% of Mainers do better under the … Read the rest

Everything you need to know about the Democratic and Republican tax plans in one chart

May 18, 2015 by

Last week Republican legislators released their proposal for overhauling Maine’s tax system. The plan includes income and corporate tax cuts, and eliminates the estate tax, all disproportionately  benefiting Maine’s wealthiest earners. It also continues the current 5.5% sales tax rate slated to expire later this year, and increases the meals and lodging tax rate to 9%. The Republican plan offers no new property tax relief or credits to improve the … Read the rest

Republican Tax Plan Gives Huge Tax Breaks to the Wealthy While Raising Taxes for Working Mainers and Seniors

May 15, 2015 by

Legislative Republicans have released a tax plan that is a bad deal for working Mainers and seniors living on fixed incomes. Based on preliminary analysis the Maine Center for Economic Policy conducted in conjunction with the Institute on Taxation and Economic Policy, Mainers with income less than $57,000 will, on average, receive a tax increase under the Republican plan. That means approximately 60% of Maine people will get a tax … Read the rest

3 unsavory ways to pay for eliminating Maine’s income tax

May 5, 2015 by

Maine’s Constitution requires a balanced budget. Eliminating the state’s income tax, as the governor proposes to do in 2020, will blow a $1.7 billion hole in the state’s budget. That represents close to half of the state’s general fund budget. Here are 3 unsavory ways legislators can balance Maine’s budget without an income tax:

  1. Eliminate all state funding for K-12 education and higher education and half of state funding on
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