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In the early hours of the morning on July 4th, Maine Lawmakers enacted a two year budget that repealed the voter approved three percent surcharge on household income over $200,000 and gave a massive tax cut to the top two percent of households.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
February 20, 2018
According to an analysis by the Maine Center for Economic Policy, payments to municipalities have been reduced by $602 million between 2011 and 2019 because of these cuts.
December 19, 2017
Sarah Austin House and Senate Republicans expect to vote on their tax bill early this week after an agreement on its provisions was struck Friday. The deal lowers the top individual rate to 37 percent, lower than either House or Senate versions of the bill, and pegs a new flat corporate tax rate of 21 percent.  
November 29, 2017
It’s becoming more and more clear that the GOP Tax Plan will have a hugely negative impact on the state of Maine. Thanks to James Myall of the Maine Center for Economic Policy for calling in to discuss.
November 27, 2017
Sarah Austin, a policy analyst with the Maine Center for Economic Policy, said in a prepared statement that removing the mandate would lead to 50,000 Mainers losing coverage and increase costs for many others.
November 22, 2017
Last year’s Thanksgiving with relatives might have left a bad taste in your mouth. This year, get ready to serve your Wacky Uncle some facts about the Republican tax plan.
November 22, 2017
James Myall The Senate Republican tax plan fails to offer meaningful benefit to Maine’s working families with children. The plan’s signature change for working families, a change to the refundable child tax credit, is being pushed as “relief for hardworking families” —but as with so much of the bill, tens of thousands of low-income families are being overlooked for the benefit of the wealthy. 
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 15, 2017
But U.S. Rep. Chellie Pingree said she won’t. She and policy analyst Sarah Austin of the left-leaning Maine Center for Economic Policy said in a roundtable discussion in Portland on Monday that the bill will be paid for by forthcoming cuts to Medicare and Medicaid benefits used by many elderly and low-income residents and the Pell student-loan program for low- to middle-class Mainers.