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AUGUSTA, Maine (AP) — Maine lawmakers are figuring out how to ensure Mainers aren’t hit with a higher state tax bill due to the Republican tax overhaul that President Donald Trump recently signed into law.
Republican Gov. Paul LePage’s administration said Thursday he’ll submit legislation aimed at preventing a state tax hike.
The federal policy cuts tax rates and nearly doubles the standard income deduction. It also caps or eliminates some popular itemized deductions and would set personal exemptions to zero.
The LePage administration’s new report finds repealing Maine’s personal exemption could contribute to a state tax increase of $250 million annually.
The report finds Maine residents and businesses could see $1 billion in federal income tax cuts under the overhaul. Lower and middle-income Mainers would be hit particularly hard by state tax increases.
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