Senate Democrats unite against estate tax handout to ultra-wealthy

AUGUSTA — Senate Democrats unanimously opposed a Republican-backed measure to give up to $14 million to a handful of super-rich families with estates in Maine. Unfortunately, the GOP majority in the Senate passed the bill in a 18-13  vote.

“In my years in the Maine legislature, I’ve never seen such a large tax cut directed to such a small number of families,” said Sen. Nate Libby of Lewiston, the lead Senate Democrat on the Taxation Committee. “I’m disappointed that my Republican colleagues would so recklessly hamstring our state’s schools, roads and bridges, and services for the elderly and disabled just to pad the pockets of the richest people in our state.”

The bill, LD 1622, was introduced by Gov. Paul LePage, and would eliminate Maine’s estate tax, which applies to inherited wealth.

Maine already exempts the first $5.5 million of inherited wealth before applying the state tax, after the Legislature voted last year to conform the state’s estate tax to the federal level. Because of this approach, more than 99 percent of Maine people are already exempt from the estate tax. The governor’s bill would provide a needless tax cut to roughly 60 families with estates in Maine worth. About 25 of these families live out of state.

This giveaway to the super-rich would take up to $14 million out of the state budget per year, creating shortfalls in essential state programs and services that future Legislatures would have to fill.

“We all represent more than 37,000 Mainers, and I know there aren’t any families in my district who benefit from eliminating the estate tax,” said Sen. John Patrick, D-Rumford. “But they are hurt by loss of revenue sharing, and by the shortfall faced by local schools. I just don’t see why we should give more handouts to the rich.”

The bill is now in non-concurrence, with majority Democrats in the House having voted to kill the bill on Tuesday.

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