MRS-INCIDENCE-REPORT-2011

Maine Resident Income Tax and sales Tax in 2011, Pre-reform law and LD 1495

Pre- reform law LD 1495

Tax Tax Change inTax Percent Families Tax Average Families Tax Average Families with
Tax Liability Percentage Liability Percentage Liability Tax with Tax Decrease Tax with Tax Increase Tax Tax Increase
Expanded Income Families ($ MIL) Distribution ($ MIL) Distribution ($ MIL) Change Decrease ($ MIL) Decrease Increase ($ MIL) Increase (percent)

-$ Infinity <= 12244 143,882 $46.078 2.4% $39.714 2.1% -$6.364 -13.8% 141,367 -$6.392 -$45.2 2,515 $0.027 $10.7 1.7%
12244 <= 17530 67,593 $28.311 1.5% $24.050 1.3% -$4.261 -15.1% 65,690 -$4.310 -$65.6 1,903 $0.049 $25.8 2.8%
17530 <= 22448 71,106 $45.248 2.4% $41.867 2.3% -$3.381 -7.5% 68,262 -$3.447 -$50.5 2,844 $0.066 $23.2 4.0%
22448 <= 30330 69,869 $67.665 3.6% $63.535 3.4% -$4.130 -6.1% 66,026 -$4.273 -$64.7 3,843 $0.143 $37.2 5.5%
30330 <= 39464 70,487 $101.670 5.3% $97.611 5.3% -$4.059 -4.0% 61,958 -$4.614 -$74.5 8,529 $0.556 $65.2 12.1%
39464 <= 54332 70,488 $143.270 7.5% $139.576 7.5% -$3.694 -2.6% 55,520 -$5.140 -$92.6 14,968 $1.446 $96.6 21.2%
54322 <= 73005 70,489 $208.814 11.0% $205.055 11.1% -$3.759 -1.8% 56,391 -$6.207 -$110.1 14,098 $2.448 $173.6 20.0%
73005 <= 107000 70,490 $316.236 16.6% $312.067 16.9% -$4.169 -1.3% 53,814 -$9.290 -$172.6 16,676 $5.121 $307.1 23.7%
107000 <= $ Infinity 70,488 $948.364 49.8% $927.865 50.1% -$20.499 -2.2% 47,188 -$48.675 -$1,031.5 23,300 $28.175 $1,209.2 33.1%
Totals (2) 704,892 $1,905.656 100.0% $1,851.340 100.0% -$54.316 -2.9% 616,216 -$92.348 -$149.9 88,676 $38.031 $428.9 12.6%
Top Decile Decomposition: 90-95, 95-99, and 99+ :
107000 <= 143608 35,244 $251.746 13.2% $251.626 13.6% -$0.120 0.0% 24,576 -$6.148 -$250.2 10,668 $6.027 $565.0 30.3%
143608 <= 317451 28,198 $351.134 18.4% $353.036 19.1% $1.902 0.5% 17,836 -$9.909 -$555.6 10,362 $11.811 $1,139.8 36.7%
317451 <= $ Infinity 7,046 $345.484 18.1% $323.203 17.5% -$22.281 -6.4% (1) 4,776 -$32.618 -$6,829.6 2,270 $10.337 $4,553.7 32.2%

Maine Revenue Services 70488.000 948.364 927.865

Economic Research Division

TOTAL TAX SAVINGS FROM ABOVE -$54.316 TOTAL ABOVE (1) 4,776 -$32.618
MRS ESTIMATE OF TAX REFUNDS NOT COLLECTED $5.700 ALL TAXPAYERS (2) 704,892 -$48.616 ###
--------------- % OF TOTAL 0.68% 67.09%
NET ACTUAL EXPECTED TAX SAVINGS TO MAINERS -$48.616
SUMMARY OF MAINE REVENUE SERVICES ESTIMATE OF IMPACT OF LD 1495 "TAX REFORM" IN YEAR 2011

Old law LD 1495

Total Tax Average Tax Percent Individual Tax Individual Tax
Tax Increase Increase Tax Liability Percentage Liability Percentage
Expanded Income Families (Decrease) (Decrease) Change ($ MIL) Distribution ($ MIL) Distribution
LESS THAN $ 30,330 352,450 ($12,436,000) ($35) -6.64% $187.302 9.8% $174.866 9.4%
$ 30,330 - $ 54,321 140,975 ($7,753,000) ($55) -3.17% $244.940 12.9% $237.187 12.8%
$ 54,322 - $ 73,004 70,489 ($3,759,000) ($53) -1.80% $208.814 11.0% $205.055 11.0%
$ 73,005 - $106,999 70,490 ($4,169,000) ($59) -1.32% $316.236 16.6% $312.067 16.8%
$107,000 - $143,607 35,244 ($120,000) ($3) -0.05% $251.746 13.2% $251.626 13.5%
$143,608 - $317,458 28,198 $1,902,000 $67 0.54% $351.134 18.4% $353.036 19.0%
---------------- --------------------- -------------------- ----------------- -------------------- ----------------- ------------------- ------------------
SUBTOTAL 697,846 ($26,335,000) ($38) -1.69% $1,560.172 81.87% $1,533.837 82.60%

MORE THAN $317,451 7,046 ($22,281,000) ($3,162) -6.45% $345.484 18.1% $323.203 17.4%
--------------- -------------------- -------------------- ----------------- ------------------ ---------------- ------------------ ------------------
Total 704,892 ($48,616,000) ($69) -2.55% $1,905.656 100.0% $1,857.040 100.0%

NOTE: THE NUMBERS ABOVE INCLUDE THE MAINE REVENUE SERVICES ESTIMATE THAT ABOUT $5.7 MILLION IN TAX REFUNDS
ALLOWED FOR ABOUT 113,000 LOW INCOME TAXPAYERS WILL NOT BE COLLECTED DUE TO FAILURE TO FILE INCOME TAX RETURN.

TOTAL TAX CUT BEFORE ADJUSTING FOR NON FILERS 54,316,000

ADJUSTMENT FOR NON FILERS (5,700,000)
--------------------
NET TAX REFUND TO MAINERS PER MRS 48,616,000
==========

$ 30,330 - $ 317,458 345,396 ($13,899,000) ($40) -1.01% $1,372.870 72.0% $1,358.971 73.2%