An analysis just released by the Tax Foundation, a non-partisan tax policy and research organization says Maine’s economy would see an increase of more than 3,900 jobs and grow the after-tax incomes of middle-income Maine families by more than $2,200 as a result of the United States Senate’s proposed tax reform bill.
Nationally, the analysis estimates the creation of nearly one million new jobs and growth of incomes for middle-income families of about 4.4 percent.
The macroeconomic model accounts for changes to both the personal and corporate income tax.
United States Senator Susan Collins, Advisor to the President Ivanka Trump, former Congresswoman Nan Hayworth and U.S. Treasurer Jovita Carranza talk about tax reform at Volk Packaging in Biddeford, Maine on November 10, 2017.
While Republicans have argued that the benefit to middle-income families would spur economic growth and job creation to grow the American economy, Democrats have assailed both versions of tax reform as providing too much benefit to American businesses and higher income earners.
If the Tax Foundation analysis is correct, the overall impact to Maine’s middle income families would be significant.
Tables provided in the Tax Foundation analysis project that the largest income growth by percentage on a dynamic basis would be to families that earn in the 40-60% income group. Those families, earning in the 40-60% income levels among families overall nationally would see a 5% increase in after-tax income.
The United States Senate is expected to consider and work through this tax reform proposal in coming weeks, just as the United States House of Representatives finishes up work on their tax reform bill.
Maine’s senior Senator, Susan Collins, recently held a tax reform forum in Biddeford with President Trump’s daughter Ivanka Trump, speaking to the need of tax reform.
Maine’s junior Senator, Angus King, has yet to speak out in support of comprehensive tax reform, which is unsurprising given King’s tendency to vote with Democrats along party lines.