Testimony in opposition to LD 835 - An Act to Phase Out the Income Tax

 

To: Committee on Taxation

From:  Marianne Hill, Ph.D.,  Sierra Club Maine

Date: March 22, 2023

Re: Testimony in opposition to LD 835 -  An Act to Phase Out the Income Tax

 

 

Senate Chair Nicole Grohoski, Representative Chair Joe Perry, and members of the Taxation Committee, I am testifying on behalf of Sierra Club Maine, representing over 22,000 supporters and members statewide. Founded in 1892, Sierra Club is one of our nation’s oldest and largest environmental organizations. We work diligently to amplify the power of our 3.8 million members nation-wide as we work towards combating climate change and promoting a just and sustainable economy. To that end, we urge you to oppose LD 835 and report “ought not to pass”.

 

Maine today has many unmet urgent needs.  Cuts to taxes and state departmental budgets would do irreparable harm both now and in the future. As federal pandemic funds run out, Maine will be facing additional shortfalls in funding for the critical transition from fossil fuels to clean energy sources (including for manufacturing, buildings and vehicles). Other urgent unmet needs exist in: mental health; housing; education; protection of the environment; and more — consider, for example, the opioid crisis and the effects of climate change on infrastructure.  The future of Maine depends on meeting these demands. 

 

The income tax is the only progressive tax in the state, and without it more of the tax burden would be shifted to the low and middle income people of Maine. Revenues would drop dramatically. Data from the 2018 ITEP report shows that, even including income taxes, the top 1% of Mainers pay 8.6% of their income in taxes, while the bottom 20% pays 8.7%.  

 

 CUTS in taxes and spending would do devastating damage to Maine’s future. Increased reliance on progressive taxes like the income tax will, in fact, be critical to meeting the challenges we already face.

 

We urge you to oppose LD 835 and report “ought not to pass”. Thank you for your time and consideration. 

 

Sincerely,

Marianne Hill, Ph.D.  

Sierra Club Maine