Maine Center for Economic Policy: Statement on Gov. LePage’s Proposal to Seek a Ballot Initiative to Reduce Maine’s Income Tax to 4 Percent by 2021

The non-partisan Institute on Taxation and Economic Policy estimates that Mainers with annual income above $175,000 would receive almost 50 percent of the benefits from this massive tax cut. The top 1 percent of Mainers with income greater than $390,000 would get an average tax cut of over $21,000 while the 20 percent of Mainers with income less than $23,000 will get an average tax cut of just $14. Ultimately any benefit middle- and low-income Mainers receive from this proposal will quickly disappear in the face of property and sales tax increases required to pay for eliminating Maine’s income tax.

Read the full statement here