Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Economist Weighs In On Governor of Maine's 2016-2017 Budget

Author: Scarinci Hollenbeck, LLC

Date: April 3, 2015

Key Contacts

Back

Dick Woodbury, a Harvard-educated economist and former state senator, recently offered his opinion on the Governor of Maine’s 2016-2017 budget proposal.

The top state official has proposed overhauling a wide range of tax policies, with lowering income taxes for residents and corporations a major focus.

Push to reduce income tax burden

LePage has repeatedly made efforts to reduce income taxes for both individuals and companies, and announced earlier this month that he wants to provide The Pine Tree State’s voters with a referendum that will give them the option to eliminate Maine’s income tax permanently, according to The Bangor Daily News.

If this constitutional amendment is successful, it would add Maine to the nine states that have no income tax currently, the media outlet reported. LePage wants to place this option before voters in 2016, with the intention of having the income tax eliminated completely by 2020.

In the interim, Maine’s governor is working to reduce this burden for residents and corporations, proposing in the governor of Maine’s 2016-2017 budget that the state cut its top corporate income tax rate to 6.75 percent from 8.93 percent.

Economist reply

When responding to Maine’s 2016-2017 budget proposal, Yarmouth lauded the governor’s approach, stating “I hope you pull this off,” according to The Bangor Daily News. In addition, he emphasized his reservations, stating that the legislature may resist specific aspects of the proposal. The economist noted that one major cost created by the proposal was lower tax revenue.

When speaking to individual provisions, Yarmouth singled out the proposed cut in corporate income taxes, stating that while the current policy may drive companies away, LePage’s proposed reduction may be too much, the media outlet reported. Instead, Yarmouth advocated providing a more modest reduction in the top rate.

Income tax changes

In his 2016-2017 proposal, LePage has suggested increasing the individual income tax exemption to $9,700 from its current level of $5,000. In addition, he has suggested lowering the tax rates for those in higher brackets.

The current exemption level came from a 2011 proposal supplied by the governor, which resulted in the state eliminating income taxes for both those at the lowest end of the spectrum and also reducing the rates on those in the highest bracket.

Push to eliminate income tax

In continuing these progressive reforms, LePage has since announced his desire to eliminate the state’s income tax entirely.

Yarmouth has criticized such statements, asserting that talking about scrapping the income tax completely could result in the governor losing a great deal of support, according to The Bangor Daily News. The economist asserted that before even considering such a measure, he wants to get a better sense of what the budget will be. Yarmouth did, however, leave the door open to such a possibility.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Common Causes of Partnership Disputes and How to Resolve Them post image

Common Causes of Partnership Disputes and How to Resolve Them

Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]

Author: Christopher D. Warren

Link to post with title - "Common Causes of Partnership Disputes and How to Resolve Them"
President Trump's Termination of Member Gwynne Wilcox post image

President Trump's Termination of Member Gwynne Wilcox

On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]

Author: Matthew F. Mimnaugh

Link to post with title - "President Trump's Termination of Member Gwynne Wilcox"
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide post image

How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide

Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]

Author: Christopher D. Warren

Link to post with title - "How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide"
Gross Lease vs. Net Lease: Understanding the Key Differences post image

Gross Lease vs. Net Lease: Understanding the Key Differences

Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]

Author: Robert L. Baker, Jr.

Link to post with title - "Gross Lease vs. Net Lease: Understanding the Key Differences"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!