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House Democrats Reject Tax Giveaway for Super Wealthy

Governor’s proposal to eliminate estate tax fails

March 22, 2016

AUGUSTA — House Democrats firmly rejected Gov. Paul LePage's proposal to create a new tax giveaway for a handful of extremely wealthy Mainers Tuesday.

The House of Representatives voted 77-65 against LD 1622, a governor’s bill that would eliminate Maine’s estate tax.

The governor’s proposal would take $14 million out of the state budget, creating shortfalls in funding for schools, roads and bridges and essential services for the elderly and the disabled.

“Democrats voted with the people of Maine today. Our communities don’t want to hand out a $14 million tax giveaway to the wealthiest Mainers and out-of-staters. An unfunded and irresponsible giveaway doesn't make any sense when there are unmet critical needs across our state,” said Rep. Adam Goode, D-Bangor, the House chairman of the Taxation Committee. “Today we prioritized help for working Mainers and seniors who are struggling to get by on fixed incomes, not a privileged few.”

Last year, the Legislature reduced Maine’s estate tax to conform to the level set by the federal government. Because of this approach, more than 99 percent of Maine people are already exempt from the estate tax. The governor’s bill would provide a needless tax cut to roughly 60 families with estates in Maine worth more than $5.5 million. About 25 of these families live out of state.

The bill faces further action in the Senate.

Contact:

Lindsay Crete (Goode) 603-540-6987