Update on the Taxation Committee hearings.
Update on the Taxation Committee hearings.
First I would like to address some of your concerns. We on the Taxation Committee have been working hard to ensure we provide Tax Reform and Restructuring recommendations that are fair and equitable for all Mainers.
Tax reform is a "work in progress" and I consider it a "living entity” that needs to be revisited and readdressed each year.
Here are some points we have on the table as part of the Tax Reform package. None of the following points are set in stone yet.
1. Currently the greatest tax burden for Maine residents is on property and income tax, and NOT on the one tax that is shared by outsiders and those who live here 6 months less 1-day, which is the sales tax.
2. The Goal of the Tax Reform/Restructuring is to shift the burden to be more equitably and favorably for Maine residents, based more on sales tax and LESS on both property tax and income tax; which all Maine residents have no choice but to pay.
3. The tax package will be revenue neutral — meaning taxes raised will be taxes reduced.
4. Whatever tax revenues are increased will go DIRECTLY into tax reduction for either income or property taxes for Maine residents.
5. We are reducing the 8.5% bracketed income tax down to a 6% flat rate. None of the tax restructuring will happen without that in place.
A. With the flat rate you will be allowed to deduct 12% of your Federal itemized deductions
6. We intend to increase the state money for the Homestead Exemption and allow the towns to “opt out” of paying the matching amount.
7. We are planning to allow municipalities to be returned 10% of the future growth, from a base year, in sales/lodging/meals tax to help offset property taxes.
8. We will be including a Tax deferral program for the elderly (65+) who cannot pay their property taxes.
A. YES as the above portion costs money, we are looking to expand the sales tax base, increase lodging/meals and real estate transfer taxes—none of which is nailed down yet. All of these taxes are paid by more than Maine residents and the revenues will buy down the taxes that ARE paid by Maine residents—primary residents property tax and income tax.
B. We are also looking to designate a portion of any future increase (15%) (10% is already planned to be kept by municipalities) to return for more tax reform.
The benefit of doing this will result in approx 89% of Maine residents seeing a reduction in their overall tax burden the first year it is implemented.
Doing nothing will result in few—if any-- seeing a benefit.
The budget is also being worked on and I will NOT support a budget that increases beyond the growth in revenues. We simply must learn as a State, to live within our means.
Respectfully,
Kathy Chase
House District #147
First I would like to address some of your concerns. We on the Taxation Committee have been working hard to ensure we provide Tax Reform and Restructuring recommendations that are fair and equitable for all Mainers.
Tax reform is a "work in progress" and I consider it a "living entity” that needs to be revisited and readdressed each year.
Here are some points we have on the table as part of the Tax Reform package. None of the following points are set in stone yet.
1. Currently the greatest tax burden for Maine residents is on property and income tax, and NOT on the one tax that is shared by outsiders and those who live here 6 months less 1-day, which is the sales tax.
2. The Goal of the Tax Reform/Restructuring is to shift the burden to be more equitably and favorably for Maine residents, based more on sales tax and LESS on both property tax and income tax; which all Maine residents have no choice but to pay.
3. The tax package will be revenue neutral — meaning taxes raised will be taxes reduced.
4. Whatever tax revenues are increased will go DIRECTLY into tax reduction for either income or property taxes for Maine residents.
5. We are reducing the 8.5% bracketed income tax down to a 6% flat rate. None of the tax restructuring will happen without that in place.
A. With the flat rate you will be allowed to deduct 12% of your Federal itemized deductions
6. We intend to increase the state money for the Homestead Exemption and allow the towns to “opt out” of paying the matching amount.
7. We are planning to allow municipalities to be returned 10% of the future growth, from a base year, in sales/lodging/meals tax to help offset property taxes.
8. We will be including a Tax deferral program for the elderly (65+) who cannot pay their property taxes.
A. YES as the above portion costs money, we are looking to expand the sales tax base, increase lodging/meals and real estate transfer taxes—none of which is nailed down yet. All of these taxes are paid by more than Maine residents and the revenues will buy down the taxes that ARE paid by Maine residents—primary residents property tax and income tax.
B. We are also looking to designate a portion of any future increase (15%) (10% is already planned to be kept by municipalities) to return for more tax reform.
The benefit of doing this will result in approx 89% of Maine residents seeing a reduction in their overall tax burden the first year it is implemented.
Doing nothing will result in few—if any-- seeing a benefit.
The budget is also being worked on and I will NOT support a budget that increases beyond the growth in revenues. We simply must learn as a State, to live within our means.
Respectfully,
Kathy Chase
House District #147
posted by Kathleen Chase at
5:18 AM
|
0 Comments
