Plan would reduce top rate to 6.99 and drop corporate tax rate to 8.33%
House Republicans laid out their budget report in the Appropriations Committee that not only eliminates the disastrous 3 percent surcharge, but also reduces the income tax for working Maine families and Maine businesses.
The House Republican budget report would do the following:
Current Law House GOP Proposal
$0 – $21,500 5.8% $0 – $42,000 5.8%
$21,500 – $50,900 6.75% $42,000 – $100,000 6.50%
$50,900 – $200,000 7.15% Greater than $100,000 6.99%
Greater than $200,000 10.15%
“House Republicans are saying ‘no’ to the status quo tax and spend policies that have been business as usual in Augusta for far too long,” said House Republican Leader Rep. Ken Fredette. “Working Maine families should keep more of their money, not be forced to send it to Augusta to fund a bloated and out of control state government. We also recognize that we can’t treat our small businesses like a bottomless well of cash.”
The total spending in the House Republican budget report over the biennium is $6.9 billion.
The total spending in the Democrat budget report over the biennium is approximately $7.25 billion. The amount of spending proposed by Democrats is simply a non-starter for House Republicans.