AUGUSTA – According to a new report released Sunday by the nonpartisan Congressional Budget Office, the federal Senate Republican tax plan gives substantial tax cuts and benefits to households earning more than $100,000 a year, while Maine’s poorest would be worse off. Along with making a major change to health insurance that the CBO projects would have a harsh impact on lower-income families, the bill also would add $1.4 trillion to the deficit over the next decade. If enacted, Maine families would ultimately pay more in taxes to the federal government, while federal investments to the state would decrease.
Speaker of the House Sara Gideon released the following statement:
“If this bill passes, Maine families will lose. Not only does the Senate plan impose tax increases on the middle-class, but it also undermines people’s access to health care. It fails to cover the full cost of proposed tax cuts for the wealthy and corporations, adding to the deficit and putting critical programs such as Medicare, Medicaid, education, and infrastructure at risk. In fact, if passed Mainers will pay a net increase in taxes of $89.6 million.”
“It is simply unacceptable that this tax bill will put even more pressure on Maine’s budget and Maine’s people. Under the federal plan, tax increases on most Mainers won’t pay for better schools, better roads, or better jobs. Instead, these tax hikes to will be used for more massive tax breaks for large corporations and our nation’s top earners. Maine families deserve better.”