The Legislature's Committee on Taxation is currently considering two proposals that would raise taxes on Maine families and businesses in the middle of a pandemic.
LD 498 would add a 3% surcharge on Maine families earning over $200,000. The surcharge will make it increasingly difficult for Maine to attract professionals to fill the needs of our businesses and will undoubtedly stifle growth, preventing new companies from moving to Maine and creating disincentives to start or grow a business in Maine. It also provides an incredible incentive for businesses currently here – who have the option to relocate – to move their businesses to a state with more favorable and attractive tax laws.
LD 501 would increase Maine’s corporate income tax rate to 12.4%. With the imposition of this corporate tax increase, Maine would have the highest corporate income tax rate in the nation. Currently only six states have a higher rate than Maine, and if this measure is adopted we will have a rate that is 90 basis points higher than the next highest state, New Jersey.
These tax increases will set us back even further as we seek to recover from the pandemic, and Maine workers will suffer as opportunities for employment dry up, incentives to start new businesses disappear, and perceptions persist that Maine is not the place to start and grow the types of businesses we will need to compete in the global economy.
We testified at the public hearing on these bills this week, and we urge our members to reach out to the committee and let them know about the negative effects of these proposals on their businesses and families.
Contact information for committee members can be found here:
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