Maine Lawmakers Push Income Tax Reform Amid Veto Threat
AUGUSTA, Maine (WMTW) – Maine lawmakers have moved forward with a proposed bill aimed at restructuring the state’s income tax brackets and rates, yet Governor Janet Mills has expressed intentions to veto the legislation if it reaches her desk.
Under current law, Maine’s income tax is set at three rates: 5.8%, 6.75%, and 7.15%. The new proposal introduces several changes to these brackets. If enacted, individuals earning less than $41,600 would maintain the 5.8% rate. Those with incomes between $41,600 and $85,000 would face a flat tax of $2,413 plus an additional 6.75% on any income over $41,600. The adjustments continue for higher income brackets: earners from $85,000 to $144,500 would incur a tax of $5,343 plus 7.15% on income over $85,000, while those between $144,500 and $205,000 would pay $9,597 plus 7.52% on income exceeding $144,500. For incomes over $205,000 but below $500,000, the tax becomes $14,147 plus 7.15% on anything above. Finally, individuals earning over $500,000 would be taxed a flat $35,240 plus 8.2% on the excess.
Despite the proposed adjustments, there is significant opposition from Republican legislators, who have long argued against any tax increases. Senator Jeff Timberlake emphasized concerns that rising taxes could drive residents out of Maine. The proposed tax reform is set for one final vote in both legislative chambers, leaving its future uncertain in light of the governor’s veto threat.
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