Gov. LePage’s new tax cut for the wealthy would be a disaster

Gov. LePage’s new tax cut for the wealthy would be a disaster

Governor LePage has submitted a bill to eliminate Maine’s estate tax. The estate tax helps fund education, health care, and infrastructure that keeps our economy strong and competitive and provides a pathway to prosperity for all Mainers regardless of the circumstances of their birth. Eliminating the state tax would jeopardize funding for these pillars of our economy and further divide the wealthiest Mainers from the rest of us.

Low- and middle-income Mainers already pay a larger share of their income in taxes than wealthy Mainers. Eliminating the estate tax would make this worse. Maine’s estate tax affects fewer than 60 estates a year that pass on more than $5.5 million in wealth. That’s less than one-half of one percent of estates annually.Roughly 25 of these families are out-of-state residents.

Losing estate tax revenue would create an $18 million hole in the budget that legislators will have to fill by raising taxes on low- and middle-income Mainers or making cuts to essential programs that Mainers rely on.

Maine needs a strong economy and a tax system that works for everyone and offers opportunity for all, not just a few. Preserving Maine’s estate tax will help fight growing income inequality, prevent tax hikes on working Mainers, and protect pathways to prosperity for all Mainers.

Photo via Andi Parkinson.

About author

Sarah Austin
Sarah Austin 4 posts

Sarah is a policy analyst for the Maine Center for Economic Policy. She holds a master’s of public affairs from the University of Wisconsin-Madison’s La Follette School of Public Affairs and a bachelor’s of science in environmental policy from Maine’s Unity College. Prior to MECEP, she worked at the State Innovation Exchange at the Center on Wisconsin Strategy and on issue campaigns in Maine and across the country on issues ranging from tax reform to non-discrimination.

Comments

You might also like

state budget

Gov. LePage’s justification for cutting taxes for the wealthy is farcical

Economic impact analysis is not an exact science. It is rife with assumptions. Bad assumptions result in bad analysis. And bad analysis yields bad public policy. Look no further  than

Maine Legislature

School funding in limbo as Gov. LePage refuses to implement Question 2

Governor Paul LePage and Maine Republicans are apparently having trouble deciding which election outcomes should or should not be respected, with Mainers treated to the strange spectacle of a governor

immigration

July 31, 2015 – The Maine politics lightning round

In this episode of the Beacon Podcast, Ben Chin and Mike Tipping discuss four issues, two of which were suggested by listeners on the Facebook page: small businesses endorsing the