Lawmakers consider bills that could change tax brackets in Maine

AUGUSTA (WGME) – State lawmakers are looking at a number of proposals that could change your income tax rate.

Moving Maine forward through changing the current income tax system, that’s the goal for lawmakers pushing these bills but how they get there is different.

“Everybody should be able to keep more of the fruits of their own labor,” said State Representative John Andrews, a libertarian from Paris.

Andrews says his bill would replace the current tax structure for individual income taxes with a flat 5% tax imposed on all Maine residents.

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He says the bill would especially help business owners by keeping more of their earned money. He says they would be more financially sound and likely reinvest in their businesses to put them back on track to where they were pre-COVID-19.

“They wouldn’t have to be begging for help from the governor in the form of grants or anything like that,” said Andrews.

Democratic Representative Joseph Perry of Bangor is also pushing a bill that would create a new income tax rate of 7.95 percent starting January 1, 2022 for income over $300,000 for single individuals and married persons filing separately, $450,000 for heads of household and $600,000 for married couples filing jointly.

He says that while income taxes would go up, it would be worth it for homeowners.

“In my town, it would increase the homestead exemption value to any given homeowner to $600 a year to $1,400 a year. Real money in the average Mainers’ pocket,” said Perry

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But not everyone agrees with raising income taxes.

“Over the last 12 months it’s been tight for everybody. I know a lot of people are still out of work and they could use all the financial assistance they could potentially get,” said Steve Milliken, a Portland resident.

Next steps for these bills include a work session next week where a vote will happen in the Tax Committee on whether the plans move on to the full Maine Legislature.