About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 Kail Padgitt, The Pine Tree State Chops Down Income Tax: Maine Enacts Major Tax Reform 1 (2009)

handle is hein.taxfoundation/ffbhexz0001 and id is 1 raw text is: FISCAL FOUNDATIONF SA June 2009FACT No. 174 The Pine Tree State Chops Down Income Tax: Maine Enacts Major Tax Reform By Kail Padgitt Summary Maine passed the most sweeping changes to their tax code since the establishment of the income tax in 1969. This reform moves the state to a much flatter income tax at a highly reduced rate. The reform is revenue neutral, so the revenue loss from the reduced income tax rate will be made up for with an expanded sales tax base (i.e. more items will be subject to the sales tax). This Tax Foundation Fiscal Fact will examine the reform process and provide a critique of the newly overhauled tax system. Background on the Reform Efforts This reform effort was created through two different bills, LD 1088 and LD 1495. The first was under the design of the legislature in the form of LD 1088. This bill was revised at the urging of the governor and became LD 1495. It was signed into law on June 12, 2009. LD 10881 LD 1088 was passed by the House on June 4th and by the Senate the next day. It was a partisan bill with only one Republican in the House voting in favor and none in the Senate. This bill had two major components: a reduction in the income tax and an expansion of the sales tax. LD 1088 was designed to replace the income tax brackets and rates with a flat 6.5% rate. This bill amounted to a significant income tax cut of 24% for those with taxable income over $19,450. Everyone with taxable income greater than $9,700 would see a reduction in the amount

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most