How Maine’s Personal Income Taxes Work explains how the 2015 bipartisan state budget agreement benefits low- and middle-income families
Augusta, Maine (Tuesday, February 23, 2016) The Maine Center for Economic Policy (MECEP) today released How Maine’s Personal Income Taxes Work, a quick but comprehensive guide to the 2015 bipartisan budget agreement’s changes to the state tax code for Maine filers, policymakers, and the media.
“When fully in effect, the legislature’s 2015 bipartisan budget agreement reduces state income taxes for 86 percent of Mainers,” said MECEP Executive Director Garrett Martin. “This guide details how the legislation’s changes to tax brackets, deductions, and credits deliver these savings to individuals and married couples filing jointly. We hope this guide helps legislators, opinion leaders, and taxpayers to understand the benefits of last year’s budget agreement and discourages efforts to unravel them.”
Martin also noted that last year’s bipartisan budget deal increased funding for critical priorities and avoided a precipitous drop in future revenue. Legislators are currently considering changes to critical components of the budget agreement and new spending that will compromise funding for more pressing priorities and ultimately undermine the fairness of Maine’s tax system. In particular, a proposal (LD 1519) to remove a cap on itemized deductions would cut a $52 million hole in the budget to give a windfall tax cut to wealthy Mainers who already got a tax cut as part of last year’s deal.
How Maine’s Personal Income Taxes Work is available on MECEP’s website at this link.