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Our State Tax Code

February 12, 2016

Last Tuesday, the Maine House voted to stand up for small businesses, schools and property taxpayers.

The measure, which I supported, is a fiscally responsible way to provide tax relief by fully conforming to changes that Congress recently made to the federal tax code while leaving out the governor’s proposal to extend the Maine Capital Investment Credit, which primarily benefits large, multistate corporations.

We know that conforming to federal tax credits that help homeowners, teachers, students and local businesses will strengthen our economy and our middle class.

At the same time, we must protect local schools and property taxpayers from the massive cost shift that school districts around the state are facing. Property taxpayers in affected towns face a funding gap of $23 million to keep our schools funded at current levels. RSU 34 alone stands to lose nearly half a million dollars in state funding.

Without action from the Legislature, our community and others across the state will be left to make up that shortfall.

We can’t afford to fund a tax break for large multistate companies while seniors, families and local businesses are left to foot the bill through increased property taxes – especially when it’s still unclear whether the credit has created jobs here in Maine as intended.

But we can take action now to bring the state tax code in line with federal law while protecting property taxpayers and our schools. I’m proud to support this measure, which faces further votes in both the House and the Senate. I hope my colleagues in both chambers will come together to support it, too.

Michelle Dunphy
State Representative