Maine 2023-2024 Regular Session

Maine House Bill LD667

Introduced
2/16/23  
Refer
2/16/23  
Refer
2/16/23  

Caption

An Act to Impose a Tax Surcharge on Certain Incomes

Impact

The introduction of LD667 could significantly influence tax policy in Maine, particularly affecting individuals with substantial taxable incomes. By adding an extra burden to high-earners, the bill aims to redistribute wealth to foster educational advancement and rural economic improvement. This legislative measure may help in closing funding gaps in public education and contribute to the growth of rural communities, enhancing their socioeconomic conditions. However, it may also spark discussions about the fairness and potential repercussions of increased taxes on high-income earners.

Summary

LD667, also known as An Act to Impose a Tax Surcharge on Certain Incomes, seeks to introduce a surcharge on high-income earners in Maine. Specifically, the bill imposes a 3% surcharge on taxable income that exceeds $1,000,000 and a 6% surcharge on income beyond $10,000,000. The revenue generated from this surcharge is earmarked for enhancing public K-12 education and supporting rural economic development initiatives, reflecting a strategic approach to addressing educational needs and economic disparities in less populated areas of the state.

Sentiment

The sentiment around LD667 appears mixed, with support primarily from those advocating for education and rural development funding. Proponents argue that the bill is a necessary step toward creating a more equitable tax system that supports critical public services. Conversely, critics express concerns about the implications of increased taxation on wealthier individuals, arguing it may lead to disincentives for investment and economic activity, and potentially drive high-income earners out of the state.

Contention

Debate surrounding LD667 is likely to focus on the balance between fair taxation and economic growth. Opponents argue that the additional financial burdens may lead high-income individuals to reconsider their ties to Maine, which could adversely affect the state's economy over time. Supporters counter that the benefits of investing in education and rural development outweigh potential drawbacks, framing the surcharge as a progressive measure that targets those most capable of contributing to the welfare of the broader community. This contention highlights the ongoing tension between the need for funding public services and maintaining an attractive environment for business and investment.

Companion Bills

No companion bills found.

Previously Filed As

ME SB208

Revises provisions governing certain surcharges imposed by a county. (BDR 20-677)

ME S08157

Enacts the "NYS health care tax reform act"; establishes a public goods surcharge on insurance corporations; establishes a public goods surcharge on business corporations; establishes a public goods surcharge on pass-through entities; relates to filing fee surcharges; relates to revenues to be included in the health care reform act resources fund.

ME A08642

Enacts the "NYS health care tax reform act"; establishes a public goods surcharge on insurance corporations; establishes a public goods surcharge on business corporations; establishes a public goods surcharge on pass-through entities; relates to filing fee surcharges; relates to revenues to be included in the health care reform act resources fund.

ME HB07313

An Act Imposing A Surcharge On Income Derived From Investment Management Services.

ME LD1089

An Act to Permanently Fund 55 Percent of the State's Share of Education by Establishing a Tax on Incomes of More than $1,000,000

ME HF3583

Individual income tax and corporate franchise tax provisions modified, and pollution control surcharge imposed on certain businesses.

ME HB3492

Relating to the distribution of certain taxes and surcharges to benefit volunteer and part-volunteer fire departments

ME AB14

Communications: California Advanced Services Fund: deaf and disabled telecommunications program: surcharges.

ME HB3153

Relating to distribution of certain taxes and surcharges to benefit volunteer and part-volunteer fire departments and emergency medical services providers.

ME SB91

Relating to distribution of certain taxes and surcharges to benefit fire departments and emergency medical services providers

Similar Bills

No similar bills found.