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).
FOR IMMEDIATE RELEASE
November 20, 2017
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). The Senate is expected to vote on the bill as early as next week, and then would quickly seek to reach a compromise with the House version with a goal of passing a bill before the end of the year. A key distinction of the Senate bill is that it includes repeal of the individual mandate, the same “skinny repeal” provision that failed to pass earlier this fall.
Maine is one of 19 states where taxpayers will pay more in federal income taxes in 2027 under the bill, with a net increase in taxes paid by Mainers of $89.6 million, while states like California and New York would pay less.
In 2025, provisions in the Senate bill that would benefit families and middle-class households expire while the bill makes permanent corporate tax breaks. The benefits for corporations are paid for by repealing he individual mandate which would increase taxes on low income families, increase health insurance premiums for everyone, destabilize the health care market, and lead to 13 million people nationwide losing health coverage.
“This bill is so bad for the middle-class that once it reaches full effect in 2027, the tax breaks it gives to foreign investors roughly equal the tax increases on the three in five American households earning less than $90,000 a year,” said Sarah Austin, a policy analyst with the Maine Center for Economic Policy. “The bill also makes devastating cuts to health care, repealing the individual requirement that everyone sign up for health coverage, which will mean 50,000 Mainers will lose coverage and already soaring premiums will be harder for low and middle-income families and seniors to afford.”
Read the new analysis HERE.