Maine Rejects Tax Cuts For The Rich, Approves A Break For The Poor

[ProSense]

Maine Rejects Tax Cuts For The Rich, Approves A Break For The Poor

By Annie-Rose Strasser

Bucking the national trend of asking the poor to pay more in taxes while giving breaks to the wealthiest Americans, Maine’s House of Representatives this week approved an expansion of the Earned Income Tax Credit and rejected an attempt to cut capital gains taxes.

A handful of states have done the opposite recently. Arkansas, Ohio, Louisiana, Nebraska, Wisconsin, Kansas, Oklahoma, and North Carolina‘s legislatures have all backed efforts to lower taxes on the rich. But Maine’s legislature is looking to give more money to those who need it most instead of the rich:

Portland Democrat Rep. Peter Stuckey’s bill, LD 455, An Act to Increase the State Earned Income Credit, would double the state earned income tax credit for low-income individuals and families to 10 percent of the federal earned income tax credit and make it fully refundable at the state level.

Democrats said the bill would provide financial relief to those who need it most, people who are likely to spend the money locally on necessities such as rent and groceries.

“We heard over and over again that the people who are going to get this credit are going to buy groceries, gas for their cars, and pay their rent,” said Rep. Adam Goode, D-Bangor, who co-chairs the Legislature’s Taxation Committee. “These are people we are sure are going to spend the money right away.”

Those who backed the capital gains tax cut in Maine, the same people who oppose the EITC expansion, incorrectly believe that a capital gains cut will help boost the economy. In actuality, the Congressional Research Service has found no correlation between economic growth and lower capital gains taxes.

On the other hand, the federal version of the EITC helps boost both employment and education among the poor. In 2011, 4.9 million children, and 9.4 million people overall, were lifted out of poverty thanks to the federal EITC.

http://thinkprogress.org/economy/2013/04/04/1821411/maine-capital-gains-eitc/

[ProSense]

1. Kick! n/t

[freshwest]

2. Wasn't 'As Maine goes, so goes the nation'? Let's hope. Thanks for the good news.

[bluestate10]

3. The expansion of the earned tax credit and rejection of a Capital Gains cut wouldn't

have happened before early January of this year. Democrats gained during the election last November, regaining losses of 2010. Ralph Nader gets proven wrong once again, there IS a difference between democrats and republicans. When democrats are leading laws tend to make sense and adhere to facts that can be checked for validity. The icing on the cake would be the defeat of Le Page in November 2014.

[freshwest]

4. +1. There truly is, it's disingenuous to say otherwise. Only the same to libertarians. As far as

Nader, I once respected him until I saw more information here at DU.

I'm disinterested in his views now, even after having bought his books in the past, etc. I never voted for him, but then I always knew voting is a gamble. You vote for the best that you feel will win, and work to get the job done with them afterward.

Anything else is a vanity pat on the back that results in nothing. Too many people say they want to be inspired, or whatever. In other words, they want to be sold on style and not ideals, they don't investigate, they go for the media show piece.

Example, Obama isn't charismatic in looks or presentation, it's his life and his work that matters, IMO. Some want the tough guy to kick the bad guys, and that's playing the media game. None for me, thanks.

Who do you think can defeat LePage in 2014 - I'm thinking this legislative work will convince a lot of voters. IIRC, the Tea Party got in because of low turnout in Maine, like they did elsewhere. I have never understood the appeal of some of these GOP, but I'm told it's the rural vote that did it.

[bluedigger]

5. I'd be surprised if LePage runs again.

Remember, he only won the first time because an Independent and the Dem split the ticket.

[freshwest]

8. True. Perhaps the most successful legislator might run for the office...

With a good record and reputation, and some name recognition, he might have a chance to knock Le Page out. I'm guessing though, that the Koch money will be there as it was in WI, a huge amount put in at the end last year to keep Ryan. Have people in Maine been following who is in ALEC to roust them out, since they write these regressive measures?

[Cha]

6. Good On Maine! I'm kinda surprised with that

Gov they have.. Paul Lepage.

thanks ProSense

[petronius]

7. Good for Maine! Have the local 'baggers called it socialism yet? (nt)