Top Democratss on Tax Committee say ‘no’ to new giveaways for super-rich

Posted: March 03, 2016 | Senator Libby, Taxation

AUGUSTA — The top Democrats on the Legislature’s Taxation Committee blasted Gov. Paul LePage’s proposal to create a new tax giveaway for a handful of super-wealthy Mainers.

The Taxation Committee on Wednesday heard public testimony on LD 1622 a governor’s bill that would eliminate Maine’s estate tax.

Last year, the Legislature reduced Maine’s estate tax to conform to the level set by the federal government. 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 more than $5.5 million. About 25 of these families live out of state.

“A handful of Maine’s wealthiest families don’t need another tax cut,” said Sen. Nate Libby, D-Lewiston, the top Senate Democrat on the Taxation Committee. “If anyone is going to get a break, it’s Maine’s working families, and that’s where I will continue to focus my efforts.”

This giveaway to the super-rich would take $18 million out of the state budget, creating shortfalls in funding for schools, roads and bridges and essential services for the elderly and the disabled.

“Maine people don’t want to hand out an $18 million tax giveaway to the wealthiest Mainers and out-of-staters.  An unfunded and irresponsible giveaway doesn’t make any sense when there are unmet needs in our fight against a deadly opioid epidemic, needed services for veterans and meeting basic expectations for public education,” said Rep. Adam Goode, D-Bangor, the House chairman of the Taxation Committee. “It’s not right that the governor is willing to blow a hole in the budget that will lead to property tax hikes for the regular people that need help the most.  Voters expect us to prioritize help for working Mainers and seniors who are struggling to get by on fixed incomes, not a privileged few who were lucky enough to be born on third base.”

The committee will consider the bill at a work session on Tuesday, March 8.

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