Maine Center for Economic Policy: Impacts of Proposed Income Tax Rate Reduction

House and Senate Republicans are demanding income tax cuts be part of the budget, and Democrats in the legislature were right to make sure they didn’t have the tools to threaten a state shutdown to get them. As the legislature prepares to pass a current services budget to avoid a stalemate in June that could result in a shutdown, Republican leaders are pushing to include language that would reduce the rate for Maine’s lowest tax bracket from 5.8% to 4.5%. This is a bad policy idea.

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