LD 498 punishes the hard work and success of Maine families, threatens Maine jobs, investments, and economic growth
LD 498, An Act to Reauthorize a 3 Percent Tax on income Over $200,000 To Lift All Maine Workers out of Poverty, threatens to stifle Maine’s fragile economy. Increasing Maine’s individual income taxes will impact jobs and investments, and will ultimately shrink, not grow, Maine’s economy. This bill punishes success and those who work hard to achieve it. This bill will hurt small businesses that have already been hit hard by the pandemic. In Maine, approximately 80% of businesses are established as LLCs, partnerships, or S-Corps. In those instances, the income from the business flows through to the individual taxpayer(s), and he or she is responsible for paying the income tax directly. The Legislature has consistently lowered the top individual income tax rates since 2011. Any increase would be a step backwards, and Maine cannot afford that!
State analysis shows this bill will impact jobs and investment…
An analysis by the independent and non-partisan Office of Policy and Management in 2017 concluded that a 3% surtax on incomes over $200,000, regardless of filing status, would have a negative impact on Maine’s economy, including reductions in employment, population, labor force, income levels and economic output. The analysis showed it would take just three short years after implementation of the increased income tax rates before it resulted in a reduction to private employment of between 1,900 and 6,600 workers – a negative impact to real, disposable income by $270-$800 million, a negative population impact of up to 3,800, and a negative economic impact of up to $320 million. These are real numbers that will devastate our economy and keep it from getting back on track after the pandemic.
LD 498 threatens the outcome of Maine’s strategic plan…
LD 498 represents the exact type of public policy that is contrary to the stated goals of the State’s 10-year Strategic Plan – which has been designed to grow Maine’s economy by increasing jobs, wages, and the value of our products.
The bill affects Maine’s ability to recruit workers…
High-income tax rates impact businesses’ ability to recruit professionals to the state. Higher-income earners are more mobile and can locate anywhere – and it will not be here in Maine if LD 498 becomes law.
Please contact your Representatives and Senators today, and urge them to vote against corporate and individual income tax increases. If you have further questions, please contact Linda Caprara, senior government relations specialist for the Maine State Chamber of Commerce, by emailing her or calling (207) 623-4568, ext. 106.