The Maine Wire
  • News
  • Commentary
  • Maine Wire TV
  • Podcasts
  • About
  • Contact
Facebook Twitter Instagram
Trending News
  • Chinese Foreign Nationals Entering U.S. Illegally at Record Levels
  • Maine Private School Teacher Was Fired After Criticizing Critical Race Theory and Posting Jordan Peterson Videos
  • Maine on Track for Record Level of Eviction Filings This Year
  • Dem Senator Indicted Over Alleged Bribery Scheme
  • McDonald’s Is Being Sued Over a Spilled Cup of Excessively Hot Coffee — Again
  • Report of Gun Leads to Arrests, Fentanyl Seizure at Auburn Homeless Encampment
  • Portland Mayoral Candidates Explain How They Would Tackle the City’s Homelessness Crisis
  • Boston University Launches Inquiry into Ibram X. Kendi’s $43 Million Antiracism Center Amid Mass Layoffs, Accusations of Financial Mismanagement
Facebook Twitter Instagram
The Maine Wire
Login
Monday, September 25
  • News
  • Commentary
  • Maine Wire TV
  • Podcasts
  • About
  • Contact
The Maine Wire
Home » News » Maine Still Struggling to Improve Business Tax Climate
News

Maine Still Struggling to Improve Business Tax Climate

Liam SigaudBy Liam SigaudNovember 30, 2015No Comments2 Mins Read
Facebook Twitter Email LinkedIn Reddit
Share
Facebook Twitter LinkedIn Email

For several years Maine has ranked among the worst states to conduct business, and 2016 will be no different, according to the Tax Foundation. Maine currently ranks 34th overall, but earns even lower marks in the areas of corporate taxes (45th), unemployment insurance taxes (41st), and property taxes (41st).

In the Tax Foundation’s index of the business tax climate in different states, Maine ranked 33rd overall in 2015, 29th in both 2014 and 2013, 37th in 2012, and 38th in 2011. From 2010 to 2012, Forbes designated Maine as the worst state in the nation for business, citing its high corporate taxes, anemic economic growth, and inability to attract large companies.

The Tax Foundation warns that uncompetitive business tax structures can profoundly damage a state’s economic foundation. “It is important to remember that even in our global economy, states’ stiffest competition often comes from other states.” According to the Department of Labor, most job relocations are from one U.S. state to another rather than to a foreign country.

Many analysts point to Maine’s corporate tax burden as the primary impediment to job creation and business prosperity. Maine’s corporate income taxes, with a top rate of 8.93 percent on income over $250,000, rank 6th highest in the nation. Earlier this year, Governor LePage’s budget proposal attempted to flatten the corporate income tax rate by gradually reducing it to 6.75% by 2021. According to the LePage administration, this would lower the corporate tax burden by $50 million over the FY 2018-2019 biennium. The Legislature largely rejected his proposal, though it approved the elimination of several tax exemptions to broaden the tax base.

Another obstacle policymakers face is Maine’s property tax system. Since 1973, inflation-adjusted property tax collections have more than doubled. Maine’s revenue sharing program, instituted more than 40 years ago as a way to provide state funding to municipalities in return for local property tax cuts, has failed to reduce the tax burden.

Print Friendly, PDF & Email
Corporate Taxes Featured LePage Maine property taxes Taxes
Previous ArticleNew Study: Obamacare Fails to Meet Expectations
Next Article Posik: The biggest problem facing America is… definitely not climate change
Liam Sigaud

Liam Sigaud is a former policy analyst at Maine Policy Institute. A native of Rockland, Maine, he holds a B.A. in Biology from the University of Maine at Augusta and has studied policy analysis and economics at the Muskie School of Public Service at the University of Southern Maine. He can be reached by email at liam.sigaud@maine.edu.

Related Posts

Chinese Foreign Nationals Entering U.S. Illegally at Record Levels

September 25, 2023

Maine Private School Teacher Was Fired After Criticizing Critical Race Theory and Posting Jordan Peterson Videos

September 25, 2023

Maine on Track for Record Level of Eviction Filings This Year

September 25, 2023

Leave A Reply

Recent News

Chinese Foreign Nationals Entering U.S. Illegally at Record Levels

September 25, 2023

Maine Private School Teacher Was Fired After Criticizing Critical Race Theory and Posting Jordan Peterson Videos

September 25, 2023

Maine on Track for Record Level of Eviction Filings This Year

September 25, 2023

Dem Senator Indicted Over Alleged Bribery Scheme

September 22, 2023

McDonald’s Is Being Sued Over a Spilled Cup of Excessively Hot Coffee — Again

September 22, 2023
Newsletter

News

  • News
  • Campaigns & Elections
  • Opinion & Commentary
  • Media Watch
  • Education
  • Media

Maine Wire

  • About the Maine Wire
  • Advertising
  • Contact Us
  • Submit Commentary
  • Complaints
  • Maine Policy Institute

Resources

  • Maine Legislature
  • Legislation Finder
  • Get the Newsletter
  • Maine Wire TV

Facebook Twitter Instagram Steam RSS
  • Post Office Box 7829, Portland, Maine 04112

Type above and press Enter to search. Press Esc to cancel.

Sign In or Register

Welcome Back!

Login below or Register Now.

Lost password?

Register Now!

Already registered? Login.

A password will be e-mailed to you.