LD 1524 hurts small businesses.
The estate tax hurts Maine businesses – particularly smaller businesses and farms – that work very hard to pass along assets to their children and grandchildren. This would take away that opportunity and instead slap them with a massive death tax – forcing families to deplete any working capital they may have in the business or sell assets or property to pay the tax. Ultimately, it punishes and penalizes success.
LD 1524 picks winners and losers in Maine ... that’s bad tax policy!
While this bill lowers the exemption amount of a Maine estate from $5.6 million to $2 million for nearly everyone, there is an exception for those engaged in fishing, farming, wood harvesting, and aquaculture. These businesses are penalized with a threshold of $3.8 million. Therefore, the bill picks winners and losers. Why should all the other Maine small businesses that are also passed down from generation to generation be treated any differently?
Increasing the estate tax threshold was part of tax reforms undertaken by the Legislature.
The Legislature increased the threshold in 2015 as part of tax reform effort in recognition of the penalizing nature of the estate tax.
LD 1524 will cause retirees to flee from Maine.
Increasing the estate tax will encourage retirees to leave the state, taking their assets out of Maine permanently. This will obviously impact revenue collections from the estate tax, future income taxes, and other taxes, as well as charitable contributions! Maine loses!
LD 1524 does nothing more than increase taxes on Maine citizens and Maine businesses!
PLEASE CALL YOUR LEGISLATORS TODAY AND URGE THEM TO VOTE ‘NO’ ON LD 1524!