AUGUSTA, MAINE — Garrett Martin, executive director of the Maine Center for Economic Policy, released the following statement in response to the Legislature’s approval early Friday morning of a supplemental budget for the remainder of the 2021 fiscal year:
“Even before the pandemic and economic crisis, Maine’s tax code was hobbled by ineffective and costly tax breaks for profitable businesses. These made it harder for the state to fund core investments like education, health care, infrastructure, and services to help Mainers get a more secure foothold in the economy.
“The last thing Maine needs as we look to build an inclusive, equitable COVID recovery are more tax cuts for businesses that profited during the pandemic. We appreciate the majority of the Maine Legislature holding firm to pass a supplemental budget without adding any more wasteful giveaways to profitable corporations.
“This supplemental budget provides $30 million in additional funding for Maine’s direct care providers. It also protects crucial state revenue by including a proposal from Gov. Janet Mills to close a tax loophole for multinational corporations, known as the Foreign Derived Intangible Income Deduction, or FDII. We are confident that the study of tax breaks for foreign income, included as part of the final compromise, will show that these programs serve only to enrich a handful of corporations and at great cost to Mainers.
“As the Legislature turns its attention to the next biennial budget, MECEP calls on legislators to prioritize bold action to create a shared economic recovery for all Mainers, and to address longstanding unmet needs that will give all families the opportunity to prosper and thrive.”