Maine 2023-2024 Regular Session

Maine House Bill LD1671

Introduced
4/13/23  
Refer
4/13/23  
Refer
4/18/23  

Caption

An Act to Reduce the Income Tax to 4.5 Percent on the Lowest Tax Bracket and Remove Low-income Families from Taxation

Impact

If passed, LD1671 would make direct amendments to the existing state tax code, particularly concerning tax calculations for low-income households. By lowering the income tax rate to 4.5 percent, the bill aims to shift the burden of taxation away from the most economically vulnerable citizens, potentially increasing their overall consumption capacity. The removal of taxation from low-income families is expected to foster an environment that encourages spending, thereby supporting local businesses and invigorating economic growth within communities. Such measures can have a ripple effect on the state’s economy, as more money in the hands of low-income families can lead to greater demand for goods and services.

Summary

LD1671, titled 'An Act to Reduce the Income Tax to 4.5 Percent on the Lowest Tax Bracket and Remove Low-income Families from Taxation,' is aimed at providing economic relief to low-income families by lowering the income tax rates for the lowest tax bracket. The bill proposes a concrete reduction in income tax, which proponents argue will support those struggling within the lowest income thresholds, thereby stimulating local economic activities as more disposable income is made available to this demographic. This legislative measure is significant as it seeks not only to alleviate some financial pressure but also to enhance the standard of living for low-income families across the state.

Sentiment

The sentiment surrounding LD1671 appears to be mixed, with democratic support advocating for progressive taxation and efforts to ease financial constraints on low-income earners. Many supporters view the bill as essential for equity, emphasizing the principle that those with lesser means should not be overburdened by taxes. Conversely, there are concerns among some factions about the implications for state revenue. Opponents argue that reducing income tax could potentially lead to a decrease in state funds available for critical services such as education and public health, hinting at the delicate balance lawmakers must maintain when addressing tax policy and economic relief.

Contention

Notable points of contention regarding LD1671 include discussions on its long-term effects on state funding and how such tax reductions could hinder the state's ability to finance essential services. Critics worry that while the intention behind the bill is commendable, the financial ramifications could lead to decreased investment in public services that low-income families rely on. Debates surrounding the bill's passage have highlighted the complexities of tax reform, especially in contexts where economic growth is a priority, but so is the maintenance of robust public infrastructure and services.

Companion Bills

No companion bills found.

Previously Filed As

ME LD1213

An Act to Reform Income Taxes by Reducing Tax Rates for Each of the 3 Income Tax Brackets

ME LD1638

An Act to Lower the State's Individual Income Tax

ME LD1866

Resolve, to Establish the Commission to Study Fair, Equitable and Competitive Income Tax Policy for Maine's Families and Small Businesses

ME LD843

An Act to Improve Income Tax Progressivity by Establishing a New Top Individual Income Tax Rate

ME LD1946

An Act to Amend the Income Tax Law to Expand the Middle Tax Bracket, Increase the Lodging Tax and Increase the Short-term Automobile Rental Tax

ME LD1231

An Act to Bring Fairness in Income Taxes to Maine Families by Adjusting the Tax Brackets

ME LD229

An Act to Bring Fairness in Income Taxes to Maine Families by Adjusting the Tax Brackets and Tax Rates

ME LD1682

An Act to Increase Fairness in the Income Tax by Adding Higher Tax Brackets and Tax Rates

ME LD835

An Act to Phase Out the Income Tax

ME LD856

An Act to Phase Out the Income Tax

Similar Bills

No similar bills found.