The Maine Republicans and Democrats have offered their tax cut plans for the next two-year budget cycle. Dirigo Blue has a nice comparison of the two plans.
I do better with visualization, so let’s try this. Tracy earns about $15,000 per year while Jamie makes closer to $118,000 per year.
The Republicans want to give Jamie a tax savings of about $1,000 while Tracey gets a tax savings of $9. Nine. No zeroes. The Democrats want give Jamie a tax savings of about $60 a year and Tracey a tax savings of about $23.
If you’re better with income brackets, the Republican proposal gives 44% of the tax savings to the Jamies of Maine (there are about 70,000 of them, or 10% of the Mainers who pay taxes). The Democrats give 44% of the tax savings to the fifty percent of us (yes, half of taxpaying Mainers) who earn less than $35,000 a year.
Or, the Democrats want to give most of the tax savings to folks like my aunts and uncles. The Republicans want to give most of the tax savings to the Eliot Cutler’s of Maine.
The Republican plan will cost $400 million over two years. The Democratic plan will cost about $100 million over two years.
House Democratic Leader Emily Cain has said that when in the minority, it’s not our job to say “no,” it’s our job to say “not that, but this, and here’s why.”
So: instead of spending $400 million to on tax savings for the top 10% of Mainers, we should spend $100 million to give tax savings to half of Mainers, because it will benefit more people, it’s more equitable and it costs less.
Two tax plans diverged in the woods and I chose the cheaper, fairer plan.
ETA: A nice bar graph, courtesy of the Maine Center for Economic Policy