Just like the tax cuts passed under President George W. Bush created big gaps in the U.S. budget, so would proposals from Maine elected officials.
And there’s one that’s quite far-reaching but has gotten little attention so far.
In part that’s probably because last year’s version has been replaced by an amendement.
The new LD 849 creates a mechanism to cut taxes that builds on itself. In addition, the cost to the budget from the tax cut is not covered in future years.
Since the funding for the rate reduction is non-recurring and the rate reductions permanent, it is possible that the bill could result in significantly reduced revenues for all years following the implementation of a tax rate reduction.
This version of LD849, to be voted on in committee soon, has not received a public hearing.
Ultimately this tax cut will mean increasingly larger cuts in the state’s budget, which is largely devoted to health care and education.
And, according to the Maine Center for Economic Policy, 75% of the tax cut would go to the top 20%.