By taxing wealthiest 3%, lawmakers can help lift 92,000 Maine households out of poverty
The Earned Income Tax Credit, or EITC, is a proven tool to reduce poverty and give kids from families with low incomes a better shot at success later in life. Maine lawmakers have a chance this year to strengthen the state’s EITC, boosting incomes for 92,000 Maine households.
LD 498 — sponsored by Rep. Mike Sylvester of Portland — would strengthen Maine’s EITC by increasing the credit by four to eight times its current value, depending on family size. That would bring Maine’s EITC in line with the federal credit.
The bill funds this investment in working families with a new 3% tax on income above $200,000. The tax would affect only the top 3.6% of households.
The EITC is a commonsense tax break for families who work
People who work hard should be able to afford the basics necessary to make ends meet, such as housing, food, health care, and child care. But low-wage jobs often mean families struggle to keep up with basic expenses.
Read more: https://mainebeacon.com/by-taxing-wealthiest-3-lawmakers-can-help-lift-92000-maine-households-out-of-poverty/