Republicans Continue To Push Plan On Tax Conformity
The GOP backed plan puts more money back in the pockets of the Maine people and Maine’s small businesses. The debate over tax conformity now heads to the Senate.
Augusta – This morning, in a 6-5 party line vote, Republicans and Democrats on the Appropriations and Financial Affairs Committee split on their plans on tax conformity.
The five Republicans voted in support of fully conforming Maine’s tax code with the recent changes made at the federal level through the PATH Act (Protecting Americans From Tax Hikes Act). This would put roughly $38 million back into the pockets of hard-working Mainers and small businesses, instead of sending it to Augusta.
Maine usually conforms with the federal tax code which allows Maine’s businesses to operate in an environment of predictability and stability.
Opting to conserve more taxpayer money to fund their pet projects, Democrats are once again pushing a plan that would simply conform to the federal changes for just one year. This would keep our small business community on unstable financial footing and set Maine even farther apart as an outlier from much of the nation.
“As legislators, it is our responsibility to create policy to help our small businesses thrive. It is important that we do not decouple from the federal government. For the first time in recent memory, we have an opportunity with this bill to provide long-term predictability and stability in our tax policy which is what is needed to encourage investment and expansion. Failure to do this will continue the failed policies of unpredictability and uncertainty and will discourage investments and its related job growth. I’m saddened that the majority of our committee does not seem to understand the importance of this,” said Rep. Tom Winsor of Norway, the ranking House Republican on the Appropriations Committee.
“Democrats are under the impression that this is their money to do with as they please. It’s not their money. It belongs to the people of Maine and we should be letting them keep it,” said Rep. Bob Nutting, House Republican member of the Appropriations Committee. “Retroactively conforming for just one year not only sends the wrong message, but it guarantees we will be right back here next year having the same debate while the Maine people and businesses are in limbo waiting to file their taxes. We have an opportunity to make life a little less stressful for the small business community. We need to seize that opportunity.”