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LePage Aims to Slash Income Tax in $6.3B Budget Proposal

By Alanna Durkin, The Associated Press

AUGUSTA, Maine - Republican Gov. Paul LePage's two-year $6.3 billion budget would lower state income taxes for thousands of residents and businesses, cut taxes on pensions and repeal the Maine's estate tax.

The governor's wants to cut the top individual income tax rate from 7.95 percent to 5.75 by 2019 percent and the top corporate rate from 8.93 to 6.75 percent. He also would expand the sales tax base by raising taxes on service providers, sales, use and meals by 1 percentage point.

Lawmakers in the Republican-controlled Senate and Democratic-controlled House will spend the coming months in tough negotiations before sending it back to the governor.

Democrats are cool to LePage's ambitious tax plan, warning that other states that have taken such an approach have seen massive revenue shortfalls.