Maine Small Business Victories and Challenges

Date: November 25, 2019

Looking back at 2018 and2019 and what to expect in 2020

VICTORIES

Small Business Expensing Conformity

NFIB won full permanent state tax conformity with Federal Section 179 expensing, which for 2019 Maine taxes allows small businesses to fully write off up to $1,000,000 of qualified equipment purchases instead of only $25,000.

Limited Workers Compensation Changes

NFIB helped persuade Governor Mills to limit labor-backed changes in the workers compensation law and not accept any future changes unless technical corrections or jointly agreed to by business and labor.

3.8% Homecare Surtax Defeat

NFIB co-lead a coalition that won strong voter rejection of a 2018 ballot proposal to impose a 3.8% payroll tax on employee earnings above the Social Security tax threshold ($128,400 in 2018) and a 3.8% tax on self-employment and non-wage household income above that threshold – which was intended to fund a first-in-the nation universal homecare program.  The added taxes would have been $310 million a year.

Paid Sick Leave Limitations

NFIB persuaded Governor Mills to prohibit local sick leave ordinances, prevent private lawsuits against employers, abolish complicated compliance requirements, strengthen employer rights and protections, and exempt thousands of small businesses from mandated minimum paid and unpaid leave.

CHALLENGES

Maine Single-Payer Healthcare

NFIB is fighting to defeat legislation that dismantles the private health insurance market in Maine and replaces it with a massively expensive healthcare-for-all or single-payer system financed by large tax increases.

Family Medical Leave Insurance

NFIB is opposing a proposal to create a family leave insurance program, to provide income supplement for birth or adoption leave, which cannot be financially viable without new payroll taxes levied on employers.

$54,224 Overtime Threshold

NFIB is fighting against legislation to raise the “white collar” overtime threshold to $52,224 by 2022, which would be among the highest of any state in the nation and threaten many jobs in Maine small businesses.

Tax Fairness Penalty on Wealth

NFIB is fighting to quash a controversial proposal to require that upper income residents pay a “tax equalization” penalty on the Maine income tax return if their combined rate of state and local taxation (income, sales, property) was less than the statewide aver

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