SENATE REPUBLICANS GIVE TAX BREAKS TO MILLIONAIRES

Senate Democrats argue for refocus on Maine’s working families

AUGUSTA—Today Senate Republicans supported changing the estate tax exemption from $1 million to $5 million in a straight party line vote of 21 – 14. Senator Richard Woodbury, the only Independent in the Senate, sponsored LD 1147, “An Act to Conform Maine’s Estate Tax to the Federal Estate Tax”.

Current federal tax code exempts estates up to $5 million but in two years the exemption returns to the $1 million tax threshold.

“It is fiscally irresponsible to be granting tax cuts to the very wealthy while tightening the vice on the thousands of middle-income earners in this state,” said Sen. Justin Alfond, the Assistant Democratic Leader. “I am lucky to have benefitted from my grandfather’s hard work and I am proud of his legacy. That being said, it is my obligation to pay taxes. The majority party preaches fiscal responsibility and personal accountability and just granted a free lunch to 600 millionaires in Maine.”

Sen. Alfond was referring to his grandfather, the late Harold Alfond who owned and operated Dexter Shoes and whose foundation is well-known for its statewide philanthropy.

Maine will need 3,800 new income tax filers in order to recoup the money lost from the expanded estate tax exemption. According to the Maine Revenue Services, 550 people would be impacted at the $2 million exemption and 600 people at the $5 million exemption.

“At a time when we’re making tough decisions like reducing support to municipalities and cutting services to Maine’s neediest, we should not be giving a break that is focused exclusively on the wealthiest among us,”said Senator Phil Bartlett of Gorham.

The Maine Revenue Services went on to report there has not been one case of a hardship due to the current estate tax.

The bill will now go to the House for a vote.