MECEP Action Tax Fairness Scorecard — 131st Maine Legislature

Sponsored by: Rep. Melanie Sachs (D-Freeport) 
Our position: Support 
House Roll Call: #350
Senate Roll Call: #484 
Result: Passed by the Legislature and signed by the Governor 

Building off a continuing services budget passed in March 2023 that funded baseline services for Maine communities, the “part two budget” provided historic supports — establishing a paid family and medical leave program for Maine, committing over $100 million in housing affordability and emergency shelter, and supporting child care workers and increasing supports for parents to better afford child care. On the Tax Fairness front this bill overhauled the property tax programs for older Mainers to make sure money is reaching people who need help most and gave access to Maine’s child tax credit for parents with the lowest income by making the Dependent Exemption Tax Credit refundable. 

“This is what good economic development looks like — investments that bet on people and help us all thrive.” — Maine Center for Economic Policy commentary 

*A Yea vote on these roll calls is the correct Tax Fairness vote in both chambers 

Sponsored by: Rep. Jack Ducharme (R-Madison) 
Our position: Oppose 
Senate Roll Call: #450 
Result: Defeated in both chambers

Touted to reduce income taxes for Mainers with low income, this bill would have given the greatest benefit to Mainers who already have the greatest income and would not have reduced taxes for Mainers with low income in any meaningful way. It also would have reduced resources available to invest in Maine people and communities by over $200 million per year. Under this proposal Mainers making over $150,000 would have gained the most, with those making under $25,000 receiving little to no benefit. That’s because Maine’s high standard deduction and personal exemption mean that many Mainers with low incomes already pay little or no taxes while Mainers with higher incomes are able to shield more of their income from taxation through itemized deductions and would ultimately be the primary beneficiaries of any reduction in taxes at lower income brackets without a corresponding increase in upper brackets. 

“Delivering real, targeted tax cuts to low- and middle-income households requires refundable credits, not rate changes. There are better targeted ways to help Mainers who need it most than this proposal, including other proposals … that have bipartisan support, like expanding the Dependent Exemption Tax Credit.” — Maine Center for Economic Policy commentary 

*A Yea vote on this roll call to accept the Ought Not to Pass Report is the correct Tax Fairness vote

Sponsored by: Rep. Ben Collings (D-Portland) 
Our position: Support 
House Roll Call: #301 
Result: Passed in the House and defeated in the Senate 

Sixty percent of household wealth in the United States is obtained through inheritance rather than direct labor. The estate tax — paid only by the very wealthiest — is a critical tool for reducing inequality and investing in the things that create shared prosperity. But in the last decade, Maine’s estate tax has been hollowed out, delivering a massive tax break to the ultra-wealthy. A more robust estate tax would improve economic opportunity and help fund needed investment in Maine communities. Lowering the exclusion amount will make the state economy fairer and better able to meet the housing needs of Mainers. 

“Conversations about the estate tax inevitably turn to questions about who pays. The reality is that most Mainers are lucky to earn $2 million dollars over an entire lifetime, let alone to have million-dollar estates to pass on to heirs. Inequality grows when our tax system is tilted in favor of the wealthiest, as it was when lawmakers cut Maine’s estate tax.” — Maine Center for Economic Policy commentary 

*A Yea vote on this roll call is the correct Tax Fairness vote 

Sponsored by: Rep. Meldon Carmichael (R-Greenbush) 
Our position: Support 
House Roll Call: #469
Senate Roll Call: #680 
Result: Passed by the Legislature, vetoed by the Governor 

A bipartisan proposal came out of the Taxation Committee to create a new top tax bracket of 8.45% on taxable income over $500,000, with a corresponding expansion of the bottom bracket to make the bill revenue neutral. Bipartisan support for raising taxes on people with wealth is a huge step forward for Maine, showing legislators in both parties recognize many Mainers are struggling and making our tax system fairer will help address this problem. 

“When multimillionaires pay the same income tax rate as a Mainer making just $62,000 a year, it should be obvious that change is needed. It’s no secret that Maine has significant needs that require significant investment. Instead of saying what we can’t afford to do in every budget cycle, let’s ask more of those who can afford it, and build a vibrant economy that works for all Mainers.” — Maine Center for Economic Policy commentary 

*A Yea vote on these roll calls is the correct Tax Fairness vote in both chambers 

Sponsored by: Rep. Ann Matlack (D-Spruce Head) 
Our position: Support 
House Roll Call: #439
Senate Roll Call: #642 
Result: Passed by the Legislature and allowed into law without signature by the Governor 

Corporations rely on our tax dollars to pay for things they use — our roads, ports, and educated workforce — to make their profits. It’s only fair that they pay what they owe into the system, the same as hardworking Mainers and small businesses. But corporations often deploy complicated tax loopholes and accounting schemes to avoid paying what they owe, which shifts costs on to Maine taxpayers. Maine’s new corporate tax transparency law will allow lawmakers and the public to see — for the first time — how many of the biggest corporations doing business in Maine are paying $0 in taxes. This information will help the legislature determine if big corporations in Maine are paying their fair share in taxes, and if not, help hold them accountable. 

“Shareholders can gauge the financial health of a company before they invest in it, but the same opportunity is not afforded to Maine taxpayers who subsidize businesses with their tax dollars.” — Maine Center for Economic Policy commentary 

*A Yea vote on these roll calls is the correct Tax Fairness vote in both chambers 

Sponsored by: Sen. Troy Jackson (D-Aroostook) 
Our position: Oppose
House Roll Call: #536
Senate Roll Call: #782 
Result: Passed by the Legislature and signed by the Governor 

A $2 million refundable tax break for the Sea Dogs over 15 years was approved by the Legislature and signed by the Governor despite a mountain of evidence showing it is a bad investment. The funds will go to Diamond Baseball Holdings (DBH), one of the biggest owners of minor league baseball teams in the US, a subsidiary of Silver Lake investment, one of the top private equity firms in the world. DBH argued it couldn’t afford the repairs to Hadlock Stadium required by Major League Baseball, some of which have already been made. Now Maine taxpayers will foot the bill instead. 

“With so many other unmet needs in our state, there are more important priorities than subsidizing a renovation of a sports stadium. Research shows that subsidies for sports stadiums are not a sound investment of taxpayer dollars. Ultimately those who will benefit most from this subsidy are the investors of the private equity firm that owns the Sea Dogs.” — Maine Center for Economic Policy commentary 

* A Nay vote on these roll calls is the correct Tax Fairness vote in both chambers