PORTLAND, Maine (AP) - State Republicans are proposing a budget for the next two years that stops short of Republican Gov. Paul LePage’s call for a massive tax overhaul.
The proposal would save Maine residents money by cutting income tax rates and raising the highest tax bracket in the state to about $50,000 in taxable income, its supporters said. A single-filer earning about $20,000 in taxable income is currently in the highest bracket.
State republican leaders said their plan also would hold the line on sales taxes and avoid taxing nonprofits, which are two key ways the plan differs from LePage’s proposal. LePage wants to slash individual and corporate income tax and pay for it in part by raising and expanding sales tax. He also wants a constitutional amendment that would prevent the state from collecting income tax beginning in 2020.
House Republican Leader Ken Fredette said the GOP plan is a “road map” toward eliminating income tax. Senate Majority Leader Garrett Mason acknowledged that the plan is “a different proposal than what the governor is offering” and said he expects there will be compromise among the Republicans, Democrats and governor.
“We gave the governor time to have his plan vetted, and this is what we think is the best way forward,” Mason said.
LePage did not immediately return a call from a reporter seeking comment.
The state Democrats also have floated their own budget proposal that would trim the income tax for people that make less than $150,000 a year. Senate Democratic Leader Justin Alfond said the Republican plan isn’t clear about what kind of budget cuts would be necessary to afford the proposed tax cuts. He said it also doesn’t adequately address property taxes.
“After months of hearing Mainers tell us that property tax relief is their priority, it is disappointing that Republicans have put forth a proposal that offers no help so that Mainers can afford to stay in their home,” Alfond said.
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