Maine lawmakers have introduced a bill that would exempt any money earned by kids from state income tax.
This proposal would make any income earned by someone under the age of 18 years tax-free, either for the individuals themselves or by those who claim them as dependents.
If approved, these changes would go into effect beginning on January 1, 2026.
Although this legislation is primarily led by Republican lawmakers, it also has support from both Independent and Democratic members of the House.
Sponsoring this bill was Rep. Benjamin C. Hymes (R-Waldo) and Senate Minority Leader Trey Stewart (R-Aroostook) alongside Reps. David Boyer (R-Poland), Quentin J. Chapman (R-Auburn), William D. Pluecker (I-Warren), Parnell William Terry (D-Gorham), as well as Assistant House Minority Leader Katrina J. Smith (R-Palermo).
A public hearing for this bill has been scheduled by the Taxation Committee for Wednesday, April 9 at 10am in State House Room 127.
Written testimony may be submitted online at www.mainelegislature.org/testimony.
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This is far from the only tax-related legislation to have been introduced so far this year. Lawmakers on both sides of the political aisle have brought forward bills aimed at amending the state’s tax code.
While Democratic legislators have proposed adding new, higher income tax brackets to collect more money from the state’s highest earners, Republican lawmakers have proposed doing away with income tax entirely.
Legislation to impose new income taxes have also been introduced by Democratic lawmakers in Augusta.
For example, Rep. Cheryl A. Golek (D-Harpswell) has proposed imposing a new four percent “surcharge” on income earned over $1 million annually.
Revenue collected from this tax would be used to fund public pre-kindergarten through grade 12 education.
Similarly, another bill looks to implement a four percent tax on capital gains over a certain threshold.
Currently, Maine taxes capital gains alongside all other forms of income. Under the current structure, this means that they are taxed at a rate of 7.25 percent at most.
As of now, it still remains to be seen which, if any, of these proposals are going to earn the support of lawmakers on the Taxation Committee and, eventually, of members of the House and Senate on the Chamber floor.
<span class="dsq-postid" data-dsqidentifier="37336 https://www.themainewire.com/?p=37336">5 Comments
Shallow thinking by old people. Believe it or not a lot of kids earn money off the internet, you’d be surprised on what influencers make its crazy. That money should be taxed just like the things I buy on the internet. If Augusta feels they need to do something to be relevant the law should read “no taxes on money earned from maine sources”. On the other hand, maybe the state should be teaching kids what it’s like to live in maine, one of the highest taxed states in the country.
Abuse will happen as all kids will immediately become employees of family businesses and the owners will not claim any income. Plus the kids should learn how the state confiscates money from the makers
Fake. They will get that money out of the peasants and their children one way or the other.
I identify as an 17 year old.
“Currently, Maine taxes capital gains alongside all other forms of income. Under the current structure, this means that they are taxed at a rate of 7.25 percent at most”
There be the rub folks. Think about it.