Maine Tax Reform Plan: A Quick Breakdown

The Maine tax code could be drastically overhauled if LD 1496 gets passed by the Maine Legislature and signed by Governor LePage. The plan is estimated to raise between $150 to $200 million in new revenue. Here's a quick breakdown of what the bill would do.1. It would lower the personal income tax rate to a flat 4 percent and eliminate all deductions.

2. Increase the sales tax rate to 6 percent and expand the sales tax base to all goods and services, except for education and healthcare. That would mean a sales tax on groceries, heating oil and wood for heating, residential electricity, funeral services, barber shop and beauty parlor services, health club services and much more.

3. Reduce the top corporate income tax rate to 7.5 percent

4. Increase excise taxes, the cigarette tax to $3.50 per pack and beer and wine taxes would be doubled.

5. Eliminate the estate tax.

Create a $50,000 homestead property tax exemption.

You can read the entire bill right here.

What do you think of this tax reform bill?