A Tax Lesson on S-Corps

A Tax Lesson on S-Corps

A recent editorial in the Portland Press Herald discusses the negative impact of a small provision in the recent so-called "jobs bill" that would have applied FICA taxes to dividends paid by S-corps.  Unfortunately the author was unable to go into the history of the S-corp to better understand why ...
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More Evidence that Tax Reform will cost Jobs

More Evidence that Tax Reform will cost Jobs

As Mainers head to the polls tomorrow to decide on Question 1 pertaining to the repeal of the new tax reform bill--which lowers the income tax rate but broadens the sales tax--should consider the results of a new study in the National Tax Journal (December 2009) which has found severe negative econo ...
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What Maine’s “Tax Reform” Will Do For Your Wedding
The "tax reform" legislation currently suspended pending the Peoples Veto vote next month is anything but a meaningful reform.Rather, it's what a legislative body does whilst trying to avoid tax reform: shuffle the deck chairs around a bit and spread the pain of their irresponsibility to undeserving ...
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The “Welcome Back Tax” Created by an Unconstitutional Tax Reform Law

The “Welcome Back Tax” Created by an Unconstitutional Tax Reform Law

Read the full report | A key objective of the LD 1495 tax reforms was to “export” more Maine taxes to non-residents and visiting tourists. The law expands sales taxes, reduces state income tax rates, and replaces income tax deductions and exemptions with a new “household tax credit” - which ...
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Comments on the Welcome Back Tax

Comments on the Welcome Back Tax

Press Conference Announcing a Constitutional Challenge to Maine’s “Welcome Back Tax”Penalizing Families Moving to Maine with up to $2,200 in Higher Income TaxesMy name is Scott Moody and I am the Chief Economist at The Maine Heritage Policy Center.In addition to the constitutional issue ...
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LD 1495: Frankenstein Tax Reform

LD 1495: Frankenstein Tax Reform

Read the full report | Since LD 1495, which replaced LD 1088, became the law of the land, everyone from the Governor on down has been crowing about the economic benefits of the lower, flat 6.5 percent marginal tax rate for most Mainers. Unfortunately, standard tax analysis demonstrates that other pr ...
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LD 1088: The Illusion of Tax Reform

LD 1088: The Illusion of Tax Reform

Read the full report | LD 1088 (An Act to Modernize the Tax Laws and Provide over $75,000,000 to Residents of the State in Tax Relief) purports to eliminate the existing four tax brackets in Maine’s personal income tax by collapsing them into a single bracket with a flat 6.5 percent tax rate. Unfo ...
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Questions and Answers on the Taxpayer Bill of Rights

Questions and Answers on the Taxpayer Bill of Rights

Read the full report | Q: What is the Taxpayer Bill of Rights?A: The Taxpayer Bill of Rights will set speed limits on the growth in state and local taxes and spending. First, any net tax increase that exceeds 0.01 percent of general fund revenue ($304,074 in FY 2008) will require a majority vote of ...
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Maine Taxpayers Will Face Higher Income Taxes Than Those in Canada, France and Italy With Proposed Federal Health Care Surtax
Read the full report | Unfortunately, for Maine’s taxpayers, the Legislature and Governor must not be talking with our Congressional delegation. On the one hand, Maine’s state government has spent two years debating tax reform in order to improve the state’s dismal business climate. A key comp ...
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Why Taxes Matter

Why Taxes Matter

Read the full report | It is known that taxpayers respond to tax incentives and disincentives. For example, a taxpayer may buy a larger house than they may "need" because they can deduct the mortgage interest from their income taxes. Since the behavior is tax-induced, it harms the economy. Rather th ...
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