Earlier this year, the Trump administration released some broadly outlined proposals to overhaul the federal tax code. Households in Maine would not benefit equally from these proposals. The richest one percent of the state’s taxpayers are projected to make an average income of $1,212,000 in 2018. They would receive 33.9 percent of the tax cuts that go to Maine’s residents and would enjoy an average cut of $53,220 in 2018 alone.
Maine
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July 20, 2017 Trump Tax Proposals Would Provide Richest One Percent in Maine with 33.9 Percent of the State’s Tax Cuts
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blog July 11, 2017 State Rundown 7/11: Some Legislatures Get Long Holiday Weekends, Others Work Overtime
Illinois and New Jersey made national news earlier this month after resolving their contentious budget stalemates. But they weren’t the only states working through (and in some cases after) the holiday weekend to resolve budget issues.
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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With the 3 percent surcharge repealed, the state’s tax code is out of balance.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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blog June 28, 2017 State Rundown 6/28: States Scramble to Finish Budgets Before July Deadlines
This week, several states attempt to wrap up their budget debates before new fiscal years (and holiday vacations) begin in July. Lawmakers reached at least short-term agreement on budgets in Alaska, New Hampshire, Rhode Island, and Vermont, but such resolution remains elusive in Connecticut, Delaware, Illinois, Maine, Pennsylvania, Washington, and Wisconsin.
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blog June 21, 2017 State Rundown 6/21: Crunch Time for Many States with New Fiscal Year on Horizon
This week several states rush to finalize their budget and tax debates before the start of most state fiscal years on July 1. West Virginia lawmakers considered tax increases as… -
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… -
media mention August 30, 2016 Governing: Back-to-School Tax Holidays Losing Popularity Among Lawmakers
“[Tax holidays] don’t help lower-income people much either, according to the left-leaning Institute on Taxation and Economic Policy (ITEP).” Read more -
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… -
media mention January 26, 2016 Mainebiz: Immigrants key ‘to what Maine needs to solve its demographic challenges’
“There were 44,687 immigrants in Maine in 2013, comprising 3.4% of the state’s population, according to the 2013 American Community Survey. Some 3.2% of business owners in Maine are foreign-born… -
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… -
ITEP Work in Action October 21, 2015 Maine Center for Economic Policy: Latest Budget Deal modestly improves Maine’s tax system progressivity, future revenue adequacy less certain Latest Budget Deal modestly improves Maine’s tax system progressivity, future revenue adequacy less certai
It is less clear whether or not revenues in the proposal will be adequate to maintain current spending in the future when adjusted for inflation. Both the Better Deal for… -
ITEP Work in Action October 21, 2015 Maine Center for Economic Policy: Budget deal includes refundable tax credits for low- and moderate-income Mainers
The tax overhaul agreed upon by legislative leaders in their recent budget negotiations includes several major provisions that affect state and local taxes, including lower income tax rates, a broader… -
ITEP Work in Action September 22, 2015 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… -
media mention January 15, 2015 The Free Press: An Eerily Familiar Tax Reform Plan, with Some Big Revisions
But in the end, the governor’s budget is just a proposal and it will be up to the Legislature to negotiate a final plan. In the coming months, Democrats and… -
ITEP Work in Action June 11, 2014 Maine Policy Review: The Distributional Effects of Recent Changes to Maine’s Tax System
Both classical economic theory and recent empirical research support the notion that taxes should be progressive: that the wealthiest citizens should pay a larger share of their income in taxes…