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3 unsavory ways to pay for eliminating Maine’s income tax

MAY 6, 2015 | MAINE CENTER FOR ECONOMIC POLICY

By Garrett Martin, includes “Maine’s Constitution requires a balanced budget. Eliminating the state’s income tax, as the governor proposes to do in 2020, will blow a $1.7 billion hole in the state’s budget. That represents close to half of the state’s general fund budget. Here are 3 unsavory ways legislators can balance Maine’s budget without an income tax … Eliminate all state funding for K-12 education and higher education and half of state funding on health care for children, seniors, and people with disabilities. … Raise property taxes by 40%. … Raise the sales tax rate to 11.5% and the meals and lodging tax rate to 16%.”

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