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 component of the tax reform plan, LD 1495, was to reduce the top statutory marginal tax rate to 6.85 percent from 8.5 percent. LD 1495 was recently signed into law.
On the other hand, the U.S. Congress and President Obama are debating health care reform. A key component of the legislation that is being debated in the U.S. House of Representatives, HR 3200 “America’s Affordable Health Choices Act,” includes a huge new income tax surcharge that will dramatically increase the top marginal rate. Clearly there is a disconnect between state policy goals and federal policy goals.