AUGUSTA – In a joint hearing of the Taxation and Appropriations and Financial Affairs Committee, the LePage Administration presented their long-awaited tax ‘conformity’ proposal. A wholesale acceptance of the Republican rewrite of the federal tax code at the state level would have negative consequences on working families, including a $236 million dollar tax increase on Mainers. The LePage proposal replaces the current personal exemption with a $500 child tax credit, doubles the state’s Estate Tax exemption, and spends $90M over the two year budget cycle.
Speaker of the House Sara Gideon released the following statement:
“Right now, Maine is the last New England state to slowly recover from the Great Recession. Over these past seven years, the Legislature has purposefully and carefully created a tax structure designed to provide and maximize financial benefit to working families. Any proposal that could jeopardize either our recovery or the working families we strive to lift up, should be carefully scrutinized. There is no requirement for Maine to automatically conform with any proposal from the federal government, especially if will affect our ability to strengthen our economy and our communities.
Democrats will support a tax conformity package that will grow and strengthen the middle class, that will make education and training more affordable, and that encourages businesses to start up and create jobs right here in Maine. We look forward to the opportunity ahead.”