SESSION
- Tuesday – Senate & House, 10 a.m.
- Wednesday – Franco American Day – House, 9 a.m.; Senate, 10 a.m.
- Thursday – Senate & House, 10 a.m.
LEGISLATION
LD 1424 – LD 1485 printed
New titles of interest include:
- Create veteran-friendly workplaces (LD 1441)
- Exempt certain seasonal workers from unemployment benefits work search (LD 1464)
- Strengthen workforce development and expand CSSP (LD 1467)
- Ensure continued coverage for essential health care (LD 1476)
- Coordinate and enforce workforce training requirements for sexual harassment (LD 1477)
TEACHERS LOBBY FOR 3% INCOME SURTAX
“Listen to the Voters Lobby Day” will be held April 18 in Augusta, when numerous teachers and other activists will talk about making “the wealthiest pay a little more.” “Asking the wealthiest 1% to pay their fair share in taxes,” claims one appeal for attendance. Activists who participate are promised “the day will be fun and empowering.” The surtax and increased State funding for education narrowly passed last November by a margin of 9,580 votes (1.27%) out of 757,276 votes cast. A majority of counties (9) and municipalities (369) voted against the Question 2 measure. Furthermore, the surtax raises the top tax rate to 10.15% for small businesses that are organized as pass-through entities (S corporations, proprietorships, partnerships, LLCs, and farms), the second highest state income tax rate in the nation. About two-thirds of households in Maine with taxable incomes more than $200,000 involve pass-through income. The surtax also means the 8.93% top rate for Maine’s largest corporations is significantly lower than the 10.15% top rate for small business owners.
SALES TAX EXPANSION, INCOME TAX RELIEF SPLITS COMMITTEE
Members of the Taxation Committee were divided over the Governor’s proposed expansion of the sales tax and significant reduction of the income tax (LD 390). Committee members voted 7-5 against expanding the sales tax to various services (recreation and amusement; installation, repair and maintenance services except B2B; personal services; household services; and, personal property services except B2B). On the Governor’s proposed reduction of the income tax to a flat 5.75% (2.75% plus 3% surtax) committee members were divided. Six members voted against any change in current law and keeping the 3% surtax. Six other members voted to repeal the surtax and keep the existing three tax brackets but reduce tax rates for each bracket (e.g., reduce the top bracket rate to 6.99% from 7.15%). These votes were passed along as recommendations to the Appropriations Committee, which is expected to vote in late May or early June on an amended biennial State Budget for 2018-2019. Elimination of the 3% surtax is expected to be a major issue in getting to the bipartisan agreement necessary to pass a budget that takes effect after June 30.
NOTABLE HEARINGS SCHEDULED
Here is a schedule of hearings on selected issues that may interest small business owners:
Apr.18, 1 p.m. – Energy, Utilities & Technology
- Modernize the renewable portfolio standard for electric utility generators (LD 1147)
- Update the renewal portfolio standards (LD 1185)
Apr.21, 9 a.m. – Transportation
- Provide more sources of revenue for the Highway Fund (LD 1226)
NOTABLE WORK SESSIONS SCHEDULED
Here is a schedule of work sessions on selected issues that may interest small business owners:
Apr.18, 1 p.m. – Labor, Commerce, Research & Economic Development
- Provide paid or unpaid family leave to employees depending on business size (LD 1159)
- Increase fines for certain wage and benefits violations (LD 1004)
- Create modification factor to reduce workers compensation insurance rates for qualifying small employers (LD 913)
Apr.20, 1 p.m. – Insurance & Financial Services
- Require insurance coverage of hearing aids (LD 192)
- Promote early detection of breast cancer (LD 817)
- Require insurance coverage of medical marijuana (LD 1064)
- Encourage consumers to comparison shop for certain health care procedures in order to lower health care costs (LD 445)
Apr.20, 1 p.m. – Transportation
- Prohibit use of handheld phones and devices while driving (LD 1089)
Apr.21, 10 a.m. – Transportation
- Provide revenue to fix and rebuild Maine’s infrastructure (LD 1149)
- Establish a task force to assess mileage-based revenue as a substitute for the gas tax (LD 1150)
