Analysis of LDs 229 and 1089 – Two New Tax Bills
Politicians in Augusta appear poised to pass LDs 229 and 1089 this session, which would raise Maine’s top income tax rate to 10.95%. However, our research concludes that either one of these bills could individually cause serious damage to Maine’s economy if passed. If both bills were passed, it would stack multiple tax increases on the same income. This would result in higher costs for business owners and professionals who invest in Maine and provide many of the state’s higher-paying jobs. Because many Maine employers pay taxes through the individual income tax, these higher rates directly affect hiring, expansion, and wage decisions. We break down the effects of LD 229 and LD 1089 here.