Proposed Biennial Budget for 2016-2017

Background

This section contains the proposed budget, to be replaced at a later date by the approved version. Also included are opinions, analysis, and articles, along with a few terms defined.

Governor LePage’s Proposed Biennial Budget for 2016-2017

Issued January 9, 2015

Please contact the Budget Office by email or by phone (207-624-7810) if you have any difficulties accessing or viewing these files.

  • Governor LePage’s Press Packet for 2016-2017 Biennial Budget Briefing: PDF
  • Governor’s 2016-2017 Biennial Budget Overview: PDF
  • General Fund Proposed Biennial Budget 2016-2017:
    • Fiscal Note: :PDF
  • Highway Fund Proposed Biennial Budget 2016-2017:
    • Fiscal Note:PDF
    • Part A: PDF
    • Final Document: PDF
  • Highway Fund Proposed Supplemental Budget 2015:
    • Fiscal Note: PDF
    • Part A: PDF

Opinions, Analysis, and Articles: Maine

Community College President resigns under pressure from LePage

BDN: January 15, 2015

LePage budget seeks a $2 million private legal contingency

PPH: January 15, 2015

Hospitals lobbyist says LePage budget provision is a ‘sick tax’ in disguise

BDN: January 14, 2015

Auburn mayor, who works for LePage, calls governor’s reform plan a plus for cities, taxpayers

BDN: January 14, 2015

‘I don’t care what color they are, I just want them to come here’: Former Maine AG makes case for immigration

BDN: January 14, 2015

LePage Budget Proposes Significant Tax Changes

MaineWire:

Statement on Governor LePage’s Proposed Budget

MECEP:

Opinions, Analysis, and Articles: National

How Regressive Local Taxes Reward the Rich

Common Dreams: January 14, 2015

Who Pays?, A Distributional Analysis of the Tax Systems in All Fifty States

Institute on Taxation and Economic Policy: January 14, 2015

Terms and Definitions

Regressive Tax

A tax that takes a larger percentage from low-income people than from high-income people. A regressive tax is generally a tax that is applied uniformly. This means that it hits lower-income individuals harder.

Some examples include gas tax and cigarette tax. For example, if a person has $10 of income and must pay $1 of tax on a package of cigarettes, this represents 10% of the person’s income. However, if the person has $20 of income, this $1 tax only represents 5% of that person’s income.

Sales taxes that apply to essentials are generally considered to be regressive as well because expenses for food, clothing and shelter tend to make up a higher percentage of a lower income consumer’s overall budget. In this case, even though the tax may be uniform (such as 7% sales tax), lower income consumers are more affected by it because they are less able to afford it.

Progressive Tax

A tax that takes a larger percentage from the income of high-income earners than it does from low-income individuals. The United States income tax is considered progressive: in 2010, individuals who earned up to $8,375 fell into the 10% tax bracket, while individuals earning $373,650 or more fell into the 35% tax bracket. Basically, taxpayers are broken down into categories based on taxable income; the more one earns, the more taxes they will have to pay once they cross the benchmark cut-off points between the different tax bracket levels.

The U.S. progressive income tax is effectively a means of income redistribution. Individuals who earn more pay higher taxes; those taxes are then used to fund social welfare programs that are used primarily by individuals who earn less. Critics of the progressive tax consider it to be discriminatory and believe that a flat tax system, which imposes the same tax on everyone regardless of income, is a fairer method of taxation.

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