The Portland Press Herald reported the increase would result from a two-year suspension of the state’s indexing of the individual tax rate. Indexing takes inflation into account in calculating taxes.
The proposal in the governor’s two-year, $6.3 billion budget for the two fiscal years beginning July 1 would bring a projected increase of more than $8.6 million in state income tax collections during that span, and an estimated $1.5 million in subsequent years.
Michael Allen, LePage’s associate commissioner of tax policy, said if the plan is approved , average Mainers who pay income taxes will pay $49 more over the next two years.
- In this Friday, April 27, 2012 photo, Gov. Paul LePage takes a sip out of a coffee mug where a “no new taxes” message is proudly displayed on the bottom of the cup at his office at the State House during an interview with the Associated Press. With control of the Legislature at stake, LePage is making selective appearances on behalf of Republican candidates, turning down more invitations for appearances than he’s accepting. (AP Photo/Pat Wellenbach)
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