SENATE REJECTS TAX CUTS FOR WEALTHY

Dems say bill would set wrong priorities for Maine

AUGUSTA—Earlier this morning in a bipartisan vote, the Senate rejected a bill to lower taxes for the wealthy with a vote of 21-14.

“We need to fix our problems, and solve our budgetary challenges,” said Senate Majority Leader Seth Goodall, of Richmond. “We know for a fact this bill will cost the state $100 million, and will only benefit a few. This is the wrong priority for Maine.”

The measure would have reduced the tax on investment income and the sale of capital assets by 50%, costing the state $46 million this year, and reducing municipal revenue sharing by $4.7 million over two years

“Economic development is not going to occur as a natural result of the wealthy having more money in their bank accounts,” said Senator Anne Haskell of Portland, the Senate chair of the Taxation committee. “That is an economic strategy that has proven not likely to work in the state of Maine.”

Republican Pat Flood of Winthrop and Unenrolled Dick Woodbury of Yarmouth joined all 19 Democrats in voting against the bill.

Yesterday, the House also rejected the measure,  LD 65, An Act To Reduce the Income Tax on Capital Gains.

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