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:

 

• Repeal the 3 percent surcharge entirely.

 

• Reduce the top income tax rate from 7.15% to 6.99% and change the tax bracket so the top rate of 6.99% would not kick in until $100,000 and up of taxable income for a single filer or $200,000 and up for a joint filer.

 

• The rate would be reduced to 6.50% for those making $42,000 – $100,000

 

• This reduces the tax burden for every Mainer and Maine family earning $21,500 or more.

 

• Reduces the corporate income tax rate from 8.93% to 8.33%.

 

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.