Working Mainers deserve a fairer tax system
From the Maine House
By Rep. Robert Saucier
We all know the old saying: in life nothing is certain but death and taxes. I think most people can appreciate this sentiment. Every year, it seems a greater portion of our income goes toward taxes. Even if we appreciate the services our tax dollars pay for, it is hard not to wonder how we could create a fairer system.
Governor LePage’s proposed budget dramatically increases taxes for middle class Mainers. He has put forward a budget which shifts the cost of performing services to municipalities by ending the 80 year old practice of sharing sales and income tax revenues with local governments. Over the next two years, towns in Maine will need to make up for this loss by raising property taxes to pay for necessary infrastructure improvements, local roads and schools.
Since property taxes disproportionately fall on the backs of middle class Mainers, increased rates will hurt working Mainers the most. In fact, a new analysis by the Maine Center for Economic Policy found that the typical Maine family would see a tax hike of $650 under the governor’s budget. This is not acceptable and as your representative I will not stand for raising taxes on the working class. The time has come to tax fairly and cut wisely.
I am especially disappointed by the governor’s tax proposal in the budget because our tax code is already unfair and outdated. The highest-income households in Maine currently pay about 10 cents per dollar on state and local taxes. Meanwhile, a household with an average income pays slightly more than 11 cents per dollar and the lowest-income households pay 17 cents per dollar.
The average Mainer who makes $48,000 annually pays a higher rate than a millionaire. According to Maine Revenue Services, a single mother of two who works full-time at minimum wage pays nearly twice as much per dollar of income in taxes as a person making $1 million per year.
Our tax system needs reform, which is why I am happy that Rep. Seth Berry has brought forward a proposal that would create a common sense tax code. Under his plan everyone would pay their fair share. Those making at least $350,000 would on average only pay an average of just one more penny per dollar of income.
This is a small change, but a Maine Revenue Services analysis found that it would generate $200 million in revenue over the next two years. These dollars would allow us to close about half of our budget shortfall and invest in the future through school construction, road repairs and healthcare for low income Mainers.
In the coming weeks the Legislature’s committee on Taxation will be reviewing Rep. Berry’s bill. There are several proposals on the table and we plan to work hard to find a bipartisan compromise.
I hope you will join me in calling on my colleagues to support reforming our tax system.
Rep. Robert J. Saucier (D-Presque Isle) can be reached at 227-1160 or via e-mail at saucierforpi@gmail.com.
