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LePage Proposes Sales Tax Hike to Reduce Income Tax Rate

Mal Leary
/
Maine Public
Gov. LePage touts his tax plans at a news conference in Augusta Monday.

Gov. Paul LePage says he will campaign throughout the state to push his plan to offset the burden created by a 3 percent surtax on wealthier Maine households.

“I’m going to be talking to Rotary clubs, Lions clubs, Kiwanis clubs, chambers, town halls,” he says.

The voter-approved surcharge on household incomes over $200,000 is aimed at boosting public school funding, but gives Maine the second-highest income tax rate for top earners.

LePage says if Mainers understand the real impact, they will push lawmakers to repeal the surtax and replace it with sales taxes paid mostly by tourists.

“My position is between May and September we have 40 million people who visit Maine,” he says. “Let’s charge them a little more for enjoying the beauty of Maine and then lower the burden on Mainers.”

LePage also renewed his pledge to veto any budget that does not reduce the income tax.

Journalist Mal Leary spearheads Maine Public's news coverage of politics and government and is based at the State House.