The amount corporations currently pay in state taxes is opaque, although it is estimated that Maine gives away over a billion dollars in tax breaks to businesses each year. Such giveaways have not been proven to be effective and would be better used to fund much-needed social safety net programs, the Maine Center for Economic Policy (MECEP) has argued.
“Mainers deserve to know if our tax structure is functioning the way the legislature intends and what corporations are paying for services that make Maine a good place to do business,” said MECEP analyst Maura Pillsbury in testimony supporting LD 1337.
MECEP is also urging state lawmakers to ensure corporations pay their fair share of taxes in Maine by aligning the state code with federal legislation requiring big businesses with profits over $1 billion to pay at least a 15% tax on money they report to shareholders. That measure was passed in part because at least 55 of the largest corporations in America paid no federal corporate income taxes in 2020.