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
Maine’s future economic success depends on having a well-skilled workforce able to tackle the challenges of the twenty-first century – and the means of developing that workforce is through the education of our children. Research indicates that investment in education is not only one of the best economic decisions a state can make, but that the earlier we direct resources at students, the more impact it has on … Read the rest
Demystifying Maine’s school funding formula to show how Question 2 will move our students to the head of the class
Question 2 on this November’s ballot increases revenue for education by $159 million a year. The state would distribute revenue raised through the existing state funding formula, and state funding would reach 55 percent of statewide education costs, a funding benchmark Maine voters mandated in 2004. Fully 94 percent of Maine students live in districts likely to receive increased state funding if Question 2 passes. Question 2 would … Read the rest
We all want a financially sound state government, but Governor LePage seems bent on undermining our public services in the name of fiscal integrity.
His most recent remarks bemoaning the unavailability of state surplus funds because of the so-called “cascade” follow his attempt this spring to move a $72 million surplus into the Budget Stabilization Fund. The governor’s statements are not only contrary to prudent budget management, … Read the rest
The Center on Budget and Policy Priorities (CBPP) released a report today that details a roadmap for stronger state economies. Central to the CBPP proven prescriptions for economic growth are strengthening education and infrastructure systems. To pay for these priorities, CBPP recommends policy corrections to reduce unnecessary spending and increase revenue from high income individuals and corporations.
Since the recession, budget cuts to the education system at every level have … Read the rest
Governor LePage submitted a bill to eliminate Maine’s estate tax yesterday. The estate tax helps fund education, health care, and infrastructure that keeps our economy strong and competitive and provides a pathway to prosperity for all Mainers regardless of the circumstances of their birth. Eliminating the state tax would jeopardize funding for these pillars of our economy and further divide the wealthiest Mainers from the rest of us.
Low- and … Read the rest
Latest Budget Deal modestly improves Maine’s tax system progressivity, future revenue adequacy less certain
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
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
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
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