MECEP Policy Brief: Legislature splits the difference in final tax compromise


The Maine Legislature has enacted a tax package negotiated in response to the federal tax overhaul signed into law by President Donald Trump in December.

The Maine law, enacted with bipartisan support, represents a compromise between legislative Republicans, who backed Gov. Paul LePage’s plan to replicate Trump’s tax cuts for the wealthy and profitable businesses, and Democrats, who proposed policies to benefit low- and middle-income families.

The compromise contains elements of the Trump tax plan, but it rejects the worst policies proposed by Gov. LePage. At the same time, it expands a vital property tax relief program for Maine homeowners and renters. The final legislation costs $26.8 million this budget cycle — less than either the governor’s or the Democrats’ initial offerings — thereby preserving more public resources for investments in Maine’s people and communities.

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