AUGUSTA, Maine — The Maine Senate on Friday kept alive a controversial proposal that would use surplus state revenue to lower state income tax rates.
In a slightly bipartisan 21-11 vote, the Senate passed an amendment that would temper the impact of LD 849, a Republican-backed measure that has become a point of friction for the Legislature. Two Democrats voted for the bill, along with all Senate Republicans.
The newly amended bill goes back to the House, which voted down the bill earlier this week.
LD 849 bill is designed to ratchet down Maine’s top income tax rate gradually to 4 percent using excess revenue. Supporters said it’s a great way to help struggling Mainers by using extra money for tax relief rather than to expand new programs or invest.
Critics have argued that the bill cripples the ability of future Legislatures to craft budgets because it gave no accounting for that lost revenue. Many likened it to Taxpayer Bill of Rights efforts that have been rejected multiple times by Maine voters.
The original proposal would have used 40 percent of one-time surpluses that normally go into the state’s “Rainy Day” fund to make income tax cuts.
The amendment that passed would set aside 20 percent in the tax relief fund, a move intended to convince enough House Republicans to support it.
During Tuesday’s initial House vote, 11 Republicans joined all but one House Democrat to reject the bill, but some said they would consider supporting it if it was amended further.
Sen. Chris Johnson, D-Somerville, said Friday that the amendment helps but he still couldn’t support the bill because it provides tax breaks to the wealthy.
“People are struggling and we’re saying we would like to give higher-income people a tax break,” he said.
Sen. Jonathan Courtney, R-Springvale, said Democrats are playing “class warfare” with the tax bill.
“We can play tax warfare … but I’m not afraid to cut the top tax rate. It’s good policy,” he said.
Sen. Dick Woodbury, U-Yarmouth, who serves on the Taxation Committee and is an economist, said he, too, wants to decrease the income tax, but said those lost revenues need to be made up somewhere else.
“We’re simply aggravating a future gap that we’ve already made large,” he said “I’m all for re-weighting the system.”
The House likely will take up the amended bill early next week.
Follow BDN reporter Eric Russell on Twitter at @BDNPolitics.
What excess revenue? Another GOP giveaway. The 2 democratic senators need to start looking for another job. Who were they?
JACKSON of Aroostook and DIAMOND of Cumberland voted yes
Only 3 were absent and they were all Democrat: BARTLETT of Cumberland, DILL of Cumberland, SULLIVAN of York
Jackson voted for this?? He must have forgot where he came from, or started making alot of money lately. Or he sees a high paying job in the near future. Troy, you might as well stay down south, we don’t want or need you up here.
I was surprised about that too. Although he’s from a different party I’ve been very disappointed in Sen Thomas too. It looks to me, on many occasions, he’s been bought and sold and forgot where he came from too.
Doug Thomas cares about getting the economy going and has been advocating for ways to get the economy going in the 2nd District. He is a good guy who has had enough of the status quo like most of us are. Just because he doesn’t support Welfare doesn’t mean he is not doing his job. He is doing his job something Democrats have absolutely no clue in doing.
Pardon me, did I say anything about welfare? From the contacts I’ve had with him he’s more like one of the “good ole’ boys” than “a good guy”, who apparently has a lot of favors to return. His concept of how to get the economy going is classic “trickle down” which the Republicans of today (a far cry from Republicans before PAC’s) don’t seem to have a clue about given the fact that that theory has never worked, in case you might possibly consider a different view, see
http://bangor-launch.newspackstaging.com/2012/03/30/opinion/america-needs-an-income-tax-increase-not-a-decrease/
Oh he believes in Welfare alright–corporate welfare and his own welfare, not the people of Maine.
He voted for a 2% cut in the top rate last term. People have a short memory or was because that bill was a Democrat sponsored bill?
Diamond my have a D after his name but he is really an R!
All of the Demcrats voted for a 2% cut in the top rate last session. All of the ones still in office should be looking for a new job in your book, right?
We will remember those who voted to give tax cuts to the rich come this November, make no mistake.
time for moonbat recall legislation.
A nice legacy to leave our kids.
You do know what to do?
Trickle down economics doesn’t work. It has been tried over and over, and the rich are so much richer and the rest of us are so much worse off.
Speak for yourself. I’m not rich, but I’m better off than I was 10 years ago…
It’s not all about you though. There are a lot more people who are not better off.
Sally, one thing is apparent, people like you never want to acknowledge or reward succes. Why should everything our state and country does be geared directly toward taking from those who have been successful to give to those who have not.
Many of those who have not found success are in the situation they are directly because of their own actions, or inaction.
When can someone like hophead2 actually feel like they can be proud of their success without someone like you just demanding more, more, more and criticizing them for it?
Hey hophead! Congrats buddy! I’m better off than I was ten years ago as well!
Looks to me like this tax cut is taking from those who are not well off and giving it to those who don’t need it. That’s not the kind of success I’d be proud of.
and let me guess, you will decide how much money somebody “needs”???
uh oh, sounds like you’re being “judgmental”.
I totally agree!
concernedinmaine, one thing is apparent, this country has been taken over by corruption at the top, involving politicians, big Wall Street banks, and international corporations — and you never want to face that.
Many of those who have become rich have done so through callous, cruel and immoral behavior, and not caring a damn about anyone else.
Why should everything in this country be geared toward serving greed, unethical behavior and plutocracy, instead of doing something about all the misery and suffering inflicted unfairly on millions of Americans?
When can someone who is a victim of corruption actually get help without feeling attacked by someone like you whose head is so deep in the sands of denial you sound like a puppet with a Rush Limbaugh tape recorder stuffed in your long wooden nose?
Hey Sally! Keep on fighting for justice and fairness. 45,000 people die a year for lack of health insurance in this country. The middle class is disappearing, American has the same wealth distribution of as an African dictatorship.
Welcome to the land of the GOP anti-free.
Bravo! Well said.
Agreed!
I’m much better off too, and will vote for all who passed this. Anyone with a little ambition can be successful if they want to.
Don’t listen to all the whiny Pitiful Pearls out there. Most of them not only don’t pay any taxes in the first place, but also get a portion of your’s through Earned Income Credit.
On one level – logic – it’s amazing that so many who benefit from the tax system and government benefits generally hate those who pay the bills. But it’s understandable on an emotional level where envy, hatred, and greed are apt to raise their ugly heads. Just read some of the comments here.
That is the problem with Liberals you folks want to keep taking more of workers hard earned money and give to those too lazy to get away from the couch away from the tv or away from the computer. It’s time to end these lifetime welfare benefits for those who want handouts. It’s not your money its our money your stealing from.
What is in your water anyway? Who is asking to take more of worker’s hard earned money, what we are angry about is that those that already have plenty want even more free and clear and they are TAKING FROM US….4% proves that. Why in the world should the rich pay a lesser percentage of tax than the poor? That is not only greedy but inhumane…Do you honestly feel this way? Why do the rich seem to care for nothing but themselves and the almighty dollar…we arent taking food out of thier mouths, we just want it to be FAIR!!!
The top rate starts at $29,000 for a single person hardly the rich. The lowest 2% tax bracket in already being eliminated starting in January for $5,000 of income won’t be taxed anymore for anyone. The exemption amount will be raised to be same as federal for an additional $950 per exemption that won’t be taxed. How is this tax cuts for the rich? Between bills this session and the tax reform bill passed by the Democrats last session 99% of all the legislators agree the top rate is too high.
Really I find it funny Liberals consider those of us who work everyday rich. The Liberals don’t care who they tax they just want their handouts. The bottom line we can’t afford to pay for these programs anymore. It is time to make these reforms and cuts and we need to start eliminating this burdensome tax on people it kicks in at a very high rate at the lowest income levels. The hypocrisy of Dems is they want everyone to collect handouts then be governed by a Nanny State on top of it. Well the people spoke loud and clear on several tax increase referendums enough is enough.
I’m a lot better off than 10 years ago, so are my kids.
I’m always getting trickled on.
That’s a good one. I’m giving you a “Like”.
Thank you. Favor returned. I am not, however, giving our governor the same. I really thought Mainers were more insightful. Sigh…
Don’t get me wrong. I disagree with you on taxes. I gave you a “Like” because of your way with words!
Understood. I have done the same thing. I even appreciate good political cartoons that I may not agree with. sometimes someone says something in a way I really like.
Yo Honey
google leonard gates fbi voter fraud landes report
Unfortunately you don’t have to be “rich” to find yourself in Maine’s confiscatory top income bracket.
Perhaps a better way to have gone about this would be to keep the tax rates but increase the income levels to which they apply.
You have a choice-you can tax the few “rich” people that may be here or you can lower the ridiculous taxes Maine has to keep the retirees and any other sane person from leaving and taking thier money with them.
Will you remember the Democrats who passed a 2% cut in the top rate in the last session
Anybody see the headlines in today’s San Fransisco Chronicle?
Recall election ordered for Wis. Gov. Scott Walker
Friday, March 30, 2012
Embattled first-term Wisconsin Gov. Scott Walker will face a recall
this spring after an election was ordered Friday following the
collection of more than 900,000 signatures in the wake of his push
against union bargaining rights.
Yes and that’s on top of Recall elections for nine Wisconsin state senators held during the summer of 2011!
People are finally getting wise to all shenanigans and should I say “Smart-” ALECS!
I called the state office of Recall Walker today to congratulate them
and they are concerned about voter fraud in the upcoming election
think diebold fbi
See my post to Honey 777
There are no words–this country is on a free fall, we’re a Titanic. I hate to be so negative but how can this be stopped? There is so much evil and corruption on all levels……….
Who answered? Charlie Webster or Charlie Summers?
Lepage,
Out the door in Twenty One Four!
20—–1—–4
The Cincinnati Bell-FBI
scandal: Leonard
Gates, a Cincinnati Bell employee for 23 years, testified that in
the late 1970’s and 80’s, the FBI assisted telephone companies with hacking
into mainframe election computers in cities across the country.
He spoke with agents from both the DOJ (U.S.
Attorney Kathleen M. Brinkman) and FBI (Agent Love), but to his
knowledge, neither agency took further action.
Leonard Gates 1987Deposition, plus
1985 Background Material from Jim Condit, Jr.
//Pandora’s Black Box
&
http://www.votefraud.org/expert_strunk_report.htm (contains case
number)
….
The top rate starts at an income of $29,000 for a single person. That is not the average working person?
Let the people keep their own money. What a GREAT idea!
Nah, you have to pay for everybody else. Let the libs decide how much of YOUR money you get to keep.
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i will win this internetz arguement
umad BDN?
Take it away from the people who really need it and give it to the rich! Must be there are so many rich people in this state that they can influence politicians by voting them in. Gotta love Democracy. I heard that the top 1% now have 93% of the wealth . I do think though, they will let us keep enough to survive so there will be someone to clean their toilets!
Don’t count on in it,if the republicans have their way there won’t be an American left at the middle class level who has a job. Their out to get even more richer than they already are and prefer to hire illegal immigrants. Their all about greed, even if it means the demise of America. The republicans must be voted out in order to begin any recovery of our country.
You make a point overlooked by most; It is the rich who hire illegal aliens. The poor cannot afford to hire anyone.
Let’s see. Instead of putting surplus revenue in the rainy day fund, use it to cut the top tax rate of the income tax (a progressive tax) which means that eventually services will have to be cut (so far, mostly cuts to services for the poor and elderly) or revenues will have to be raised from other taxes (which tend to be regressive, affecting most those who have the least).
Actually, given the potential budget deficit that already-passed tax cuts have created for the next few years, it is a sham to call it surplus revenue anyway.
Score for that 1%
This story illustrate the need for moonbat recall legislation.
Whaddya say we leave this legacy to our kids?
You do know what to do, eh?
Unbelievable! The rich get richer…. Maybe they’ll throw us a few crumbs to fight over…
Sen. Chris Johnson, D-Somerville, said Friday that the amendment helps but he still couldn’t support the bill because it provides tax breaks to the wealthy.
Stand strong, Sen. Johnson. You were elected because of the backlash to the bully. Know that you are doing the right thing by not supporting another outrageous tax cut for the wealthy. How on earth is this going to help the “struggling Mainers” as they are not the ones affected??
This has been voted down numerous times by the people. And if it passes, and it takes a people’s veto, so be it. And any legislator that supports it will also be Vetoed Out in November.
Just think,
These guys cry that we dont have enough Tax Revenue to pay for their East West Highway so instead of raiseing taxes to pay for it they give the richest like Vigue and his Cronys a Tax Break so that they can invest in Toll Highways that we pay for with both Tolls AND Taxes.
Both the Tax breaks and the Tolls end up in their buddies pockets and we are left with dumps!
Boy are we getting screwed!
WTF ??? Slashing healthcare & homeless budgets right and left, and now we’re giving tax breaks to the HIGHEST income brackets… this is just plain WRONG!!!
We certainly wouldn’t want all those rich people homeless, would we? LOL
Looks to me like this tax cut is taking from those who are not well off and giving it to those who don’t need it. That’s not the kind of success I’d be proud of.
I’m with keeping an eye on who votes for this and make sure they don’t get a vote in Nov. Sickening for the GOP to give themselves a tax break and take more money from the “rainy day fund.” That fund was NOT to support giving the rich breaks. Sickening and none of you will have my vote in Nov!
We have deficits, and the Republicans want to put more money in the pockets of the rich. It makes no sense.
Do you think Bank Robbers are concerned about the banks customers?
This is ok… they are showing us how they protect the upper class. Lets all remember this come election time.. they all need to go!
It ‘s time for a citesens initiative!
Gloves are off!
Apparently the majority of posters who are complaining about an income tax reduction are the ones who don’t pay income tax at all.
If this keeps up they’ll actually have to get jobs.
How is that “apparent” to you that they don’t pay income tax or have jobs? Please cite a couple of examples from posters below that brought you to that conclusion.
Either their income is derived by taxes paid by others or they are just plain stupid. I decided to give them the benefit of the doubt by stating the former. But, you could be right, it may be the latter.
Governor LePage has the power to veto. I have the power to vote. I challenge him to veto this when it hits his desk.
LePage is NOT going to veto. This is right out of the Republican Playbook, lowering taxes for the rich and doing nothing for the poor and middle class, while the uneducated Republican base will inexplicably be in full support.
The rich are richer than they have been since the Gilded Age. They are literally sitting on piles of cash and are still not creating jobs. Let’s reward them for their hard work, you know, lying to the people and manipulating the media.
You want more jobs created, get rid of unions
We must close union offices, confiscate their money and put their leaders in prison. We must reduce workers’ salaries and take away their right to strike. – Adolph Hitler, May 2, 1933
You ever go see where the union leader are living, I bet none of them live in a moderate house
Obviously you know nothing about unions than you have been told by people like LePug. If you did, you would know that union leaders also have a working job in the business where the union is. They draw a pay at the rate of the job they hold. Stop listening to the Repubs! They want to see an end to unions so they can exploit the common man and build that bottom line at their expense. You believe in a minimum wage? thank unions! You work a real job at a fair pay rate? Thank unions.
Who are all those full time staffers at MSEA-SEUI?
Tax cuts should go to those who pay the most taxes
Interesting enough, I will pay $88 to the feds, and over $900 to the state. I’d say the state has more strangling taxation in Maine than at the federal side. No wonder Maine had been looked upon as a bad state to bring in your business.
My wife paid over 3k in taxes, she only got back less then 1400, my nephew who made less then 8K dollars and paid in way less then my wife did got back over 3k, so please explain that math to me?
I tend to agree about Maine taxes. Our Maine income taxes for 2010 were so high that our federal deduction for them propelled us right into a very large amt. We made the mistake of making too much income that year – a mistake we will definitely not repeat – which was corrected in 2011 when our income was reduced by 2/3, resulting in a much lower and fairer tax bill.
Is that your total or what you owe more than was withheld. If the former, I’ll gladly swap tax bills with you!
this state and this country need a flat tax rate, the same for everyone – people, corporations and churches alike. 2%, 5%, whatever it takes, but NO fancy BS deductions and tax shelters.
Has anyone ever noticed that the harder we work, the luckier we get? L.U.C.K. stands for laboring under correct knowledge. Maine is full of people expecting some dream company to come in here and give them a $30.00 an hour job with no special skills. Tax cuts for people at the top are not the biggest problem that a good percentage of our citizens have. Worry about getting you and your family up the pay ladder where you’ll have to pay more taxes than you desire.
Yo Penguin, the struggling Mainers are NOT the ones in the top 4%…its the ones in the bottom 96% that are getting the screws put to them on a daily basis
Go ahead and tax the people in Maine who make money. I am one of them and I am going to leave this State so fast when I retire THAT THE TAR IS GOING TO fall apart behind me. I pay a lot of taxes to this State and all I hear is people saying I do not pay enough. Well in a few years it will be ZERO tax dollors!!!!!
good bye.
Don’t worry I will be back 5 months a year!!
I know exactly what you mean. What is it about people who think you can just keep on taxing and the money will come in? Enough people with money have left this tax hell hole
called Maine. This state will stay in the lower economic spectrum as long as it keeps some of the highest taxes in te country. BTW-I’ll come back for about 5 months too.
Don’t let the door hit you on the way out!!
You make the difference for those that become non-residents.
Excellent! Let’s cut Medicaid/MaineCare for the poor, while cutting the top tax rate for the wealthy. Only Republicans could see that as a good idea.
The Democrats cut the top rate 2% last term. Their “tax reform” bill by the third year gave tax cuts of $34.5 million to the top 1% while the bottom 99% got tax increase of $3.5 million. Guess it’s not just the Republicans who think it is a good idea.
So we take from the poor and give tax breaks to the rich…LaPage hires family members for over paid and under worked positions in the state house… and the rest of us will just continue to get poorer dispite it.
When all you whinners get a pay check from a poop person please let me know. Also doing way better then I ever was when the grandfather of the dems was in office clinton, living pay check to pay check. I’m not in the so called 1% but I’m not part of the whinners so called 99% either.
Recall this fool please.
We must vote out out all of the RObThe publicans in all future elections in order to at least try to save America from all their destructive policy, that they seem to envision for the majority of Americas hard working citizens. Vote democrat or independent in all up coming elections, just to try to save what’s left of America.
SOOOOOOO foreclosure on homes screw you…..but if you’re rich ‘Open for Business’ grand plan you obtuse nitwits…..
Just another example of the Republican/Tea Potty war on the people. It should be obvious to anyone that they only represent the rich at the expense of the rest of us.
It’s time to put a lid on the Tea Potty, it’s smelling the place up. Vote them out every chance you get.
Nov. 6, 2012
Maine state legislators make $13,526 per year for first regular session and $9,661 per year for second regular session.[3] Legislators also receive $38/day housing, or mileage and tolls in lieu of housing (up to $38/day) plus $32/day for meals.[3] Per diem limits are set by statute. The Governor makes $70,000 per year PLUS PLUS PLUS! Enough said!