AUGUSTA, Maine (AP) Maine’s Republican governor has unveiled a plan to prevent a state income tax hike as a result of President Trump’s tax reform.
Gov. Paul LePage’s administration on Thursday proposes to effectively zero-out a tax hike by not taxing the first $4,150 of a Mainer’s income. In exchange, the plan would repeal Maine’s $4,150 personal income tax exemption as called for under Trump’s tax reform.
States are still sorting out the fallout of GOP tax overhaul that could mean lower federal income taxes and higher state taxes.
Maine’s term-limited, fiscally conservative governor proposes two goals he’s long fought for: reducing taxes on corporations and estates.
LePage also wants to use a projected $128 million budget surplus for a child tax credit that he estimates would provide tens of millions in tax relief.
