Tax and Budget

July 7, 2017
In the early hours of the morning on July 4th, Maine Lawmakers enacted a two year budget that repealed the voter approved three percent surcharge on household income over $200,000 and gave a massive tax cut to the top two percent of households. This is the third biennial budget in eight years that contained tax breaks for the wealthiest Mainers. The top five percent of Mainers now pay the lowest effective tax rate on average compared to all other income groups. These tax breaks for the wealthiest come at a cost to investments in thriving communities and worsen income inequality.

Tax and BudgetEach year, Maine leaders set priorities and make choices for allocating state and local revenues for education, health care, public assistance, economic development, public safety, roads and bridges, environmental protection, and other services important to Maine families, businesses, and communities. They also determine how to fund those revenues through taxes, fees, borrowing, and other sources. For 20 years, MECEP has provided exhaustive, timely, and respected analysis of Maine tax and budget policies to ensure that Maine invests its limited revenues wisely in ways that most benefit Maine working families, especially their economic security, health care needs, and education and job training and that encourage strong economic growth by addressing the needs of Maine businesses for skilled workers, promoting local markets, and investing in research and development. We also assess the fairness of Maine’s tax policies, work to eliminate ineffective, wasteful tax breaks, especially for large corporations, and assure greater progressivity of Maine’s revenues.

Most Recent
November 20, 2017
FOR IMMEDIATE RELEASE  November 20, 2017  CONTACT  Sarah Austin (207) 620-1104 New Analysis—Senate Tax Bill increases taxes on 4 in 5 Maine households by 2027 AUGUSTA, MAINE (November 20, 2017) – By 2027, the 80% of Maine households earning less than $147,140 will see a tax increase of $250 on average under the Senate’s proposed tax bill, according to new analysis released yesterday by the Institute for Taxation and Economic Policy (ITEP). 
November 17, 2017
By Andy O’brien, Published on Free Press Online   Recent college graduate Jonathan Brown, Congresswoman Chellie Pingree and analyst Sarah Austin of the Maine Center for Economic Policy (Click on dots below for more photos)   This Thursday, the US House of Representatives is expected to vote on a bill that promises to deliver a massive income tax cut to the wealthiest taxpayers and corporations while eliminating various tax breaks, credits and deductions.
November 17, 2017
Both the Maine Center for Economic Policy and the Washington, D.C.-based Center for American Progress crunched the numbers from a Congressional Budget Office analysis to get state-specific data on the effect of repealing the individual mandate.
November 6, 2017
“If this were a genuine effort to boost the middle class, Congress would be proposing a $1.5 trillion package to take on student debt, create good jobs with good benefits, or invest in modern infrastructure to give American businesses a competitive edge.
November 3, 2017
Sarah Austin, policy analyst at the left-leaning Maine Center for Economic Policy, said the changes would not provide any significant tax benefit to the typical Maine family.
November 2, 2017
AUGUSTA, MAINE (November 2, 2017) – U.S. House Republican leaders released tax legislation today that would give large tax cuts to the wealthiest individuals and corporations and threaten core services for working families and seniors.
October 27, 2017
"Question 4 is a simple bi-partisan solution to mend the Maine constitution to change the period time where we amortize or cover the loss for unfunded liabilities from 10 years to 20 years," said Marpheen Chann, the communications director at Maine Center for Economic Policy.
October 4, 2017
"This tax plan is bad for Maine," said Sarah Austin, a policy analyst at the Maine Center for Economic Policy. "If enacted, these lopsided cuts will only serve to worsen the growing gap between the richest households and everyone else and will trigger deep cuts in this and future budgets to everything from medical research, to job training, to infrastructure and other investments that grow our economy."
July 13, 2017
Using the 10 percent tax rate approved by Maine voters, the state is likely to bring in about $18 million a year once the market is established, in two or three years or so, said James Myall, a policy analyst for the Maine Center for Economic Policy.
July 13, 2017
James Myall, a policy analyst for the Maine Center for Economic Policy, said the bigger the gap between the legal price of marijuana, after taxes, and the street price of black market marijuana, the more people will turn to illicit suppliers.