June 3rd Update
This week we will be voting on LD 1088 An Act To Modernize the Tax Laws and Provide over $50,000,000 to Residents of the State in Tax Relief. I will be voting for the measure. Though the plan is not perfect, it is a good middle of the road tax reform plan (and it is still a work in progress!). Like any plan, some people will agree and others will disagree. Here is an overview of the bill.
Circuit Breaker: The bill incorporates the Circuit Breaker (property tax relief program) into the income tax form. This will simplify the application process and increase participation in the program.
Lower Income Taxes: The bill will lower income tax rates from 8% to 6%. This reduction will take us from one of the highest rates in the nation to the middle of the pack. This is good for all Mainer’s.
Business-to-Business Changes: The business-to-business burdens from the original bill have been removed. (These include commercial vehicle repair and several items affecting manufacturing.)
New Rule-making Procedures: The bill will develop a new system the will ensure that Maine Revenue Services will not be able to reinterpret the tax laws in the future without Legislative approval.
This is just a brief overview of the bill. The bill will help to export our tax burden. The Androscoggin County Chamber, the Portland Regional Chamber and the Bangor Chamber support the bill. If you would like more information on the bill, please contact me.
