On Thursday, May 6, the Joint Standing Committee on Taxation held a public hearing on four more bills that would increase income taxes on high earners in the state. These bills join the lengthy list of the bills the committee has already heard. The Maine State Chamber of Commerce opposed all four bills.
Sponsored by Rep. Thomas Harnett (D-Gardiner), LD 1135, An Act to Promote Fairness in Income Tax Rates by Making Them More Progressive, provides for four income tax brackets – instead of three – and raises the top rate for individuals from 7.15% to 10.15% for individuals whose income exceeds $100,000 for single or married filing separately, $150,000 for heads of households, or $200,000 for married filing jointly.
Sponsored by Rep. Joseph Perry (D-Bangor), LD 1289, An Act to Cut Property Taxes for Maine Residential Homeowners, would increase the top income tax rate for individuals from the current 7.15% to 7.95% on those folks whose income exceeds $300,000 for single filers or married filing separately, $450,000 for heads of households, or $600,000 for married filing jointly. Revenue raised from the new taxes would be used to increase the homestead exemption from $25,000 to $55,000.
Sponsored by Rep. Ben Collings (D-Portland), LD 1443, An Act Regarding Higher Income Tax Levels, would establish five new income tax brackets – each of which contains five new levels of rates for those whose income exceeds $100,000 for single or married filing separately, $150,000 for heads of households, or $200,000 for married filing jointly. The new rates start at 9.15% and increase to 13.15% depending on your level of income.
Sponsored by Rep. Grayson Lookner (D-Portland), LD 1500, An Act to Bring Equity to Maine’s Tax Laws by Adjusting Certain Individual Income Tax Rates, would raise the top individual income tax rate from 7.15% to 12.4% on income exceeding $200,000 for single or married filing separately, $300,000 for heads of households, or $400,000 for married filing jointly.
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