The Maine Public Broadcasting Network
Listen Live
Classical 24
Search
Proposed Maine Budget Includes Income Tax Hike
01/15/2013 10:51 AM ET  

Gov. Paul LePage's proposed state budget includes a change that would increase the tax bill of the average Mainer by $39 over the next two years.

This story contains a correction.  See Editor's Note below:

AUGUSTA, Maine (AP) _ Gov. Paul LePage's proposed state budget includes a change that would increase the tax bill of the average Mainer by $39 over the next two years.

The Portland Press Herald reports the increase would result from a two-year suspension of the state's indexing of the individual tax rate. Indexing takes inflation into account in calculating taxes.

The proposal in the governor's two-year, $6.3 billion budget for the two fiscal years beginning July 1 would bring a projected increase of more than $8.6 million in state income tax collections during that span, and an estimated $1.5 million in subsequent years.

State finance officials say that if the plan is approved , average Mainers who pay income taxes will pay $39 more over the next two years, $13 the first year and $26 in the second.

Editor's Note: A previous version of this story said that the governor's proposed budget would increase the tax bill of the average Mainer by $49 over the next two years.

ReturnReturn!



Become a Fan of the NEW MPBNNews Facebook page. Get news, updates and unique content to share and discuss:

Recommended by our audience on Facebook:
Copyright © 2014 Maine Public Broadcasting Network. All rights reserved.