Maine Center for Economic Policy: When Budgets Unravel: Unlimited deductions will jeopardize schools and safety When Budgets Unravel: Unlimited deductions will jeopardize schools and safety

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"Legislators passed a bipartisan budget last year that funds schools, communities, and programs that give a hand up to those most in need. The budget also cuts income taxes for 83% of Mainers and improves the overall fairness of Maine’s tax system by reducing property taxes for all homeowners and boosting after-tax income for low- and middle-income families. Efforts to roll back important provisions of the tax plan threaten to unravel these achievements and funnel millions in tax cuts to the wealthiest Mainers. Specifically, LD 1519 eliminates the $28,550 cap on itemized deductions in effect since 2013 and made permanent in last year’s bipartisan budget deal. If this proposal passes it will compromise our ability to fund our schools and communities and make Maine’s tax system less fair."

Legislators passed a bipartisan budget last year that funds schools, communities, and programs that give a hand up to those most in need. The budget also cuts income taxes for 83% of Mainers and improves the overall fairness of Maine’s tax system by reducing property taxes for all homeowners and boosting after-tax income for low- and middle-income families.
Efforts to roll back important provisions of the tax plan threaten to unravel these achievements and funnel millions in tax cuts to the wealthiest Mainers. Specifically, LD 1519 eliminates the $28,550 cap on itemized deductions in effect since 2013 and made permanent in last year’s bipartisan budget deal. If this proposal passes it will compromise our ability to fund our schools and communities and make Maine’s tax system less fair.