Lawmakers yesterday defeated what many considered at “tax shifting” plan rather make a serious attempt at true tax relief or reform. Some supporters of a general approach involving a broadening of the sales tax and a lowering of the income tax, however, said they held out hope that the matter could be taken up again sometime between legislative adjournment this week and the start of the 2008 election year.
Included in this plan were an increase in the state transfer tax and the elimination of mortgage interest as a tax deduction - both seen as a detriment to owning and selling real estate.
Earlier this month, a Taxation Committee majority had endorsed a package that supporters said would cut taxes overall for Maine residents by a little more than $140 million, largely by shifting more of the current state tax burden to non-residents.
That original package would have lowered the top income tax rate in the current multi-tier system from 8.5 percent to a flat 6 percent for all. The general sales tax rate would have been held steady at 5 percent, but expanded to include numerous services not currently covered.
For more details and the complete story, visit the Portland Press Herald online.
Posted by: Michael Sosnowski
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