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Home / Maine Democrats – Expand Sales Tax to Lower Income Tax; GOP Wary of PlanMaine Democrats – Expand Sales Tax to Lower Income Tax; GOP Wary of Plan
Last Updated on Tuesday, 3 February 2009 10:54 Written by rslcpol Tuesday, 3 February 2009 10:54
From BangorDailyNews:
Democratic leaders of the Taxation Committee, however, think they have the solution. As they did two years ago, they want to expand what is covered by the sales tax and use that money to lower the income tax rate. They stress that any plan will be “revenue-neutral” and not add to the overall amount of taxes paid by Mainers.
“We know that our top income tax rate is too high and kicks in far too soon,” said Rep. Tom Watson, D-Bath, co-chairman of the Legislature’s Taxation Committee. “We also know our sales tax base is very narrow, and that makes it very volatile in a recession like we are having now.”