Testimony in Support of LD 1136, LD 1443 and LD 1500

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To: Committee on Taxation

From: Marianne Hill, Sierra Club Maine

Date: May 5, 2021

Re: Testimony in Support of LD 1136, LD 1443 and LD 1500

Senator Chipman, Representative Terry, and Members of the Committee on Taxation. My name is Marianne Hill, and I write on behalf of Sierra Club Maine’s over 20,000 members and supporters in support of more tax brackets for higher incomes in Maine’s Income Tax.

Sierra Club Maine supports the call for greater tax fairness in Maine — a need recognized by Mainers for Tax Fairness. Bills LD 1136, LD 1443 and LD 1500 would add more income tax brackets at higher income levels for those paying income taxes to Maine. Each of these bills would mark an improvement over the current situation.

Maine will return to the pre-pandemic revenue status quo after federal pandemic funds have been disbursed. This will leave the state with the usual shortfalls in funding for revenue sharing, infrastructure, clean energy, mental health, education, protection of the environment and more. The LePage tax cuts have been accompanied by rising sales and property taxes, making the state tax structure more regressive.

Increased reliance on the progressive income tax is critical to the state’s future, and more tax brackets at higher income levels are necessary if revenues are to keep pace with Maine’s needs. We urge Ought to Pass for LD 1136, LD 1443, and LD 1500.

Respectfully submitted,

Marianne Hill, Ph.D., Economist

On behalf of Sierra Club Maine