LePage calls for elimination of Maine income tax
The next election for governor of Maine isn’t until next November, but the race is underway. Former Republican Gov. Paul LePage launched his campaign against Democratic Gov. Janet Mills on Wednesday night calling for the elimination of state income tax. LePage said repealing Maine’s income tax will make the state more attractive to businesses and residents. “It’s time to phase out state income tax and make Maine competitive,” LePage said. how the state budget would remain balanced, as required, without income taxes. Republican State Senator Beth O’Connor believes it can be done. “I would do it gradually. I wouldn’t try to do it all at once, because it’s not always that you’re going to see the savings and economic growth right away,” O’Connor said. in fiscal 2021, income taxes amounted to 43% of general fund, or $ 1.8 billion. Sales taxes represented 42% of general fund, followed by corporate taxes at 6% and 3% tobacco taxes. Democratic State Representative Joe Perry worries about the program cuts that would be needed to make up for lost revenue. on the table – everything – and that still wouldn’t be enough to eliminate , what, 45% of tax revenue. That’s just not the reality for the state of Maine, “Perry said. If he wins next November, he wants Maine to emulate states like the New Hampshire and Florida. ”I would absolutely support that. There are currently nine states in the United States that have no income tax, and those states are all quite prosperous, ”said O’Connor. Skeptics warn that if income taxes are eliminated, sales taxes will increase as they did under LePage. , and government costs will be shifted to municipalities and property taxes. “There aren’t enough changes available to pay for the income tax repeal, so, I mean it’s either an idea in air, or it’s just political talk that isn’t reality, ”Perry said.
The next election for governor of Maine will not take place until next November, but the race is underway.
Former Republican Gov. Paul LePage launched his campaign against Democratic Gov. Janet Mills on Wednesday evening, calling for the elimination of state income tax.
LePage said repealing Maine’s income tax will make the state more attractive to businesses and residents.
“It’s time to phase out state income tax and make Maine competitive,” LePage said.
LePage has told supporters that Maine’s tax burden is too high, but there are questions about how the state’s budget would remain balanced, as required, without income taxes.
Republican State Senator Beth O’Connor believes it can be done.
“I would do it gradually. I wouldn’t try to do it all at once, because it’s not always that you’re going to see the savings and economic growth right away,” O’Connor said.
In fiscal 2021, income taxes amounted to 43% of the general fund, or $ 1.8 billion. Sales taxes represented 42% of the general fund, followed by corporate taxes at 6% and tobacco taxes at 3%.
Democratic state representative Joe Perry is concerned about program cuts that would be needed to make up for lost revenue.
“Everything should be on the table – everything – and that still wouldn’t be enough to eliminate, what, 45% of tax revenue. That’s just not the reality for the state of Maine,” Perry said.
LePage lowered tax rates in the first of his two terms. If he wins next November, he wants Maine to emulate states such as New Hampshire and Florida.
“I would absolutely support that. There are currently nine states in the United States that have no income tax at all, and those states are all pretty prosperous,” O’Connor said.
Skeptics warn that if income taxes are eliminated, sales taxes will rise as they did under LePage, and government costs will be shifted to municipalities and property taxes
“There aren’t enough shifts available to pay for the income tax repeal, so I mean it’s either pie in the sky or it’s just a talk policy that’s not reality, ”Perry said.