Lawmakers in Maine this year took bold steps toward making the state’s tax system fairer. Their actions demonstrate that political will can dramatically alter state tax policy landscape to improve economic well-being for low-income families while also ensuring the wealthy pay a fairer share.
ITEP Work in Action
Advocates and policymakers at the state and federal levels rely on ITEP’s analytic capabilities to inform their debates on proposed tax policy changes. In any given year, ITEP fields requests for analyses of policies in 25 or more states. ITEP also works with national partners to provide analyses of federal tax policy proposals. This section highlights reports that use ITEP analyses to make a compelling case for progressive tax reforms.
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ITEP Work in Action September 26, 2019 Maine Reaches Tax Fairness Milestone
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ITEP Work in Action September 4, 2019 MECEP: NEW REPORT: Maine reaches new milestone on the road to tax fairness
Starting in 2020 and for the first time in decades, the Mainers who earn the least will no longer pay a larger share of their income to state and local taxes than those who earn the most, according to a policy brief published today by the Maine Center for Economic Policy.
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ITEP Work in Action February 6, 2019 Maine Center for Economic Policy: To Fund Shared Prosperity, We Must End LePage-Era Tax Cuts for the Wealthiest
For years under Gov. Paul LePage, budget-busting tax cuts robbed our state of the revenue we need to build a stronger, fairer economy. Tax cuts delivered windfalls to the wealthiest… -
ITEP Work in Action January 15, 2019 Maine Center for Economic Policy: The Prosperity Budget
Where State of Working Maine 2018 investigated the nature of work in the modern economy and made recommendations to reaffirm our values of fairness and respect in the workplace, the… -
ITEP Work in Action October 17, 2018 Maine Center for Economic Policy: Maine Still Has Work to Do in Building a Balanced and Adequate Tax Code
Building an inclusive economy requires tax policy that meets two conditions. The first is that those with the most are asked to pay more, or at the very least pay as great a share of their income in taxes as everyone else. The second is that enough shared resources are raised through the tax code to invest adequately in foundations of a strong economy including good schools, access to health care, and safe and modern infrastructure.
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media mention September 20, 2018 The Free Press: Think Tank Releases Blueprint to Fully Fund Education, Medicaid & Lower Property Taxes
Tax cuts passed by the Maine Legislature and Gov. Paul LePage over the past eight years will cost the state $864 million in revenue in the next biennium, according to an analysis by the Maine Center for Economic Policy and the Institute on Taxation and Economic Policy. At the same time the state continues to ignore its legal obligations to fully fund education, Medicaid expansion and revenue sharing.
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media mention August 17, 2018 Press Herald: Will Maine Referendum On Home Care Result In ‘Marriage Penalty’ Tax?
Aidan Davis, senior policy analyst at the nonpartisan Institute on Taxation and Economic Policy, wrote a letter to the Secretary of State’s Office on June 15 stating that the income… -
ITEP Work in Action April 17, 2018 Maine Center for Economic Policy: Comparing the Democratic and GOP tax bills
Because of the federal tax overhaul spearheaded by President Trump and Congressional Republicans, the Maine Legislature is considering two competing proposals to change its own tax code. Lawmakers face a… -
ITEP Work in Action March 9, 2018 Maine Center for Economic Policy Policy Brief: The LePage Tax Bill
On March 1, Gov. Paul LePage’s Administration presented a tax bill to the Legislature designed to mirror at the state level some of the reforms enacted by passage of the… -
ITEP Work in Action August 17, 2017 Maine Center for Economic Policy: Maine Millionaires Primary Recipients of Proposed Trump Tax Breaks
New analysis from the Institute on Taxation and Economic Policy (ITEP) shows Maine’s millionaires would get an average tax cut of $135,220 under President Trump’s proposed tax plan. Maine millionaires represent only 0.3 percent of all Maine households, yet would receive more than a quarter of all tax breaks.
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ITEP Work in Action July 20, 2017 Maine Center for Economic Policy: Trump Tax Plan Would Give Richest Maine Taxpayers an Average $53,000 Tax Cut and Trigger Deep Cuts to Federal Dollars for Maine
A new analysis from the Institute on Taxation and Economic Policy reveals a federal tax reform plan based on President Trump’s April outline would fail to deliver on its promise of helping middle-class taxpayers, showering three out of every five dollars of the total tax cut on the richest 1 percent nationwide. In Maine, the top 1 percent of the state’s residents would receive an average tax cut of $53,000 compared with an average tax cut of $400 for the bottom 60 percent of taxpayers in the state.
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ITEP Work in Action July 7, 2017 Maine Center for Economic Policy: What Happens When Those with the Most Pay the Least Taxes?
With the 3 percent surcharge repealed, the state’s tax code is out of balance. Those with the most are asked to pay the least. This means a middle-class family keeps 91 cents on average after state and local taxes for each dollar earned, versus 93 cents kept by the wealthiest in the state. This preferential tax treatment of wealthy Maine household also comes at a cost to roads, public health, and quality education that low and middle income Mainers rely on the most to succeed.
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ITEP Work in Action June 13, 2017 Maine Center for Economic Policy: Senate Republican Vote Defies Will of Voters, Compromises Current and Future School Funding to Give Tax Cuts to Wealthy
According to the Institute on Taxation and Economic Policy, repealing the citizen approved surcharge would give a $16,300 tax break on average to the top 1% of Maine households and cost the state over $300 million in school funding over current and future biennia.
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ITEP Work in Action March 20, 2017 Maine Center for Economic Policy: MECEP Testifies Against Bills to Cut Taxes for the Wealthy at Expense of Maine’s Schools
Augusta, Maine (Monday, March 20, 2017) State legislators on the taxation committee will hold a public hearing today on several bills that would roll back the tax to pay for education enacted under Question 2, the ballot initiative passed by Maine voters in November 2016. As a result of Question 2, the state will have the capacity to provide 55% of school funding mandated by voters previously in 2004.
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ITEP Work in Action February 17, 2017 Maine Center for Economic Policy: Testimony in Opposition to Governor’s Proposed Budget, Parts D, E, and F
These proposed tax changes would stand in the way of building thriving communities and a strong Maine economy. There is a direct correlation between state resources and the ability to… -
ITEP Work in Action February 2, 2017 Maine Center for Economic Policy: Upside-down tax plan, missed opportunity, and unnecessary and harmful cuts in the governor’s budget proposal
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… -
ITEP Work in Action January 19, 2017 Maine Center for Economic Policy Releases Findings Related to Distributional Impacts of Governor LePage’s Budget Proposal
MECEP finds that Governor LePage’s budget proposal includes an upside down tax plan that will lead to the following outcomes: Taxes will go up on average for Maine families… -
ITEP Work in Action November 1, 2016 Maine Center for Economic Policy: Moving Maine Students to the Head of the Class
“This November, Maine voters will consider a ballot initiative (Question 2) that rolls back recent tax breaks for the wealthy and dedicates this revenue toward additional state level resources for… -
ITEP Work in Action February 29, 2016 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
Read the full report here “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… -
ITEP Work in Action October 21, 2015 Maine Center for Economic Policy: MECEP Analysis: Better Deal for Maine “Provides Bigger Tax Cuts for More Mainers”
The Maine Center for Economic Policy (MECEP) today released “Distributional Analysis: ‘Better Deal’ Provides Bigger Tax Cuts for Most Mainers while Increasing Investment in Education and Other Critical Services,” a… -
ITEP Work in Action October 21, 2015 Maine Center for Economic Policy: Eliminating Maine’s income tax: A boon to wealthy Mainers, will hurt everyone else
Two weeks ago Governor LePage notified lawmakers of his intention to amend Maine’s constitution to eliminate the state’s income tax by 2020. This may mean the governor has thrown in… -
ITEP Work in Action October 21, 2015 Maine Center for Economic Policy: Republican Tax Plan Gives Huge Tax Breaks to the Wealthy While Raising Taxes for Working Mainers and Seniors
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… -
ITEP Work in Action October 21, 2015 Maine Center for Economic Policy: Everything you need to know about the Democratic and Republican tax plans in one chart
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… -
ITEP Work in Action October 21, 2015 Maine Center for Economic Policy: The one question Republican legislators need to answer
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… -
ITEP Work in Action October 21, 2015 Maine Center for Economic Policy: Where tax fairness is concerned, the legislative Republicans’ tax plan is the worst of all
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…