Tax Reform in Maine

June 24, 2009

This month Maine passed the most sweeping changes to the state’s tax code since the establishment of its income tax in 1969. According to Tax Foundation Staff Economist Kail Padgittt, author of the new Tax Foundation Fiscal Fact “The Pine Tree State Chops Down Income Tax: Maine Enacts Major Tax Reform,” the reform has both good and bad aspects, but overall is a positive change:

The Maine legislature has attempted broad and far-reaching reform of their tax system, Ultimately the reform effort is a positive step forward. It would have been better if LD 1088 had been enacted into law instead of LD 1495. However, both represent an attempt to simplify and stabilize the Maine tax system. The Maine legislature should remain focused on creating a tax code that pushes for simplicity, neutrality and stability. Whether this marks the beginning of larger tide of beneficial tax reform or the high watermark is yet to be seen.

Read the new Tax Foundation Fiscal Fact. More on Maine’s tax system.

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