123RD MAINE LEGISLATURE - JOINT STANDING COMMITTEE ON TAXATION

We have been extremely focused working on the issues in the Taxation
Committee. For the past several weeks we have concentrated on tax reform.

We have held several hearings to solicit tax reform ideas from fellow legislators and members of the public. The public hearing is unusual in that it was not focused on any single bill, but rather was an invitation to present ideas for the Taxation Committee to consider as it moves toward a consensus fair tax plan.

The Taxation Committee has come to a bipartisan agreement on a list of 8
Guiding Principles for achieving tax reform.

123RD MAINE LEGISLATURE - JOINT STANDING COMMITTEE ON TAXATION

TAX REFORM PRINCIPLES

1. Tax reform should reduce the overall tax burden on Maine residents.

2. Tax reform should be revenue neutral.

3. The benefits of tax reform should be shared by all Maine residents in all regions of the State.

4. Tax reform should seek to simplify the tax structure.

5. Tax reform should be pursued using a clear, transparent and a participatory process.

6. Tax reform should provide an overall tax structure that is equal to or strives to be more progressive than the current system

7. Tax reform should strengthen the economic future of the State.

8. Tax reform should be bold and timely.