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EXAMPLE E

GOV_TAX_PLAN_2015_ATTACHMENTS_R
EXAMPLE E
TAX CALCULATION FOR A MARRIED COUPLE WITH 1 CHILD UNDER AGE 65 - PORTLAND
PORTLAND PROPERTY FULL VALUE
ASSESSED VALUE AFTER HOMESTEAD EXEM
INCREASED PROPERTY TAXES

330,000
320,000

6,600 TAXES WITHOUT HOMESTEAD


6,400 TAXES WITH HOMESTEAD EXEMPTION
-----------------200
GOVERNOR'S
BUDGET
TAX CHANGE
CURRENT LAW PROPOSED TAX
INCREASE
2015
2016
(DECREASE)
-------------------------- ----------------------- -----------------------

MAINE INCOME TAX CALCULATION


INCOME

175,000

175,000

EXEMPTIONS
ITEMIZED DEDUCTIONS
MORTGAGE INTEREST (300,000 AT 5.0%)
PROPERTY TAXES (400,000 AT $20 PER 1,000)
CHARITABLE CONTRIBUTIONS
AUTO EXCISE TAX

(A)

(12,150)

(12,150)

TOTAL ITEMIZE DEDUCTIONS / STD DEDUCTION

(A1)

(15,000)
(8,000)
(2,500)
(500)
-------------------------(26,000)

(12,850)

-------------------------- -------------------------136,850
150,000

MAINE TAXABLE INCOME


MAINE TAX BEFORE CREDITS - 2015 LAW
INFLATION ADJUSTMENT FOR BRACKETS - 2016
PROPERTY TAX FAIRNESS CREDIT
NET MAINE INCOME TAX
FEDERAL INCOME TAX CALCULATION
INCOME
EXEMPTIONS
ITEMIZED DEDUCTIONS BEFORE STATE INCOME TAX DEDUCTION
ITEMIZED DEDUCTION FOR INCREASED PROPERTY TAX
STATE INCOME TAX DEDUCTION
FEDERAL TAXABLE INCOME
FEDERAL INCOME TAX

9,594
(26)

(A2)

8,110

0
-------------------------- -------------------------9,568
8,110

(1,458)

175,000
175,000
(12,150)
(12,150)
(26,000)
(26,000)
0
(200)
(9,568)
(8,110)
-------------------------- -------------------------127,282
128,540

(1)

SALES TAX INCREASE

NET TAX (DECEASE) INCREASE BEFORE IMPACT OF REVENUE SHARING LOSS

200

23,409

23,723

314

2,500

3,475

975

(2)

-------------------------31
=============

(1) - USED 2015 FEDERAL TAX RATES WHICH FOR MARRIED IS $10,313 + 25% OF EXCESS OVER $74,900
(2) - THIS TAXPAYER HAS A MARGINAL FEDERAL TAX RATE OF 25% AND BOTH PROPERTY TAXES AND
MAINE INCOME TAXES ARE DEDUCTIBLE, BUT SALES TAXES ARE NOT DEDUCTIBLE FOR FEDERAL INCOME
TAX PURPOSES (NET DEDUCTIBLE TAXES DECREASED BY $1,258 X 25% = $314).
(A) - PROJECTED EXEMPTION FOR 2016 WILL INCREASE FROM 4,000 TO 4,050.
(A1) - THE STANDARD DEDUCTION FOR 2015 IS 12,600 AND WOULD BE 12,850 FOR 2016 BASED ON 2.1% INFLATION ADJUSTMENT
(A2) - ADJUSTED TAX BRACKETS BY 2.1% INFLATION ADJUSTMENT.

EXAMPLE D
EXAMPLE D
TAX CALCULATION FOR A MARRIED COUPLE OVER AGE 65 WITH LARGE CHARITABLE CONTRIBUTIONS
PORTLAND PROPERTY FULL VALUE
ASSESSED VALUE AFTER HOMESTEAD EXEMPTION
ASSESSED VALUE AFTER HOMESTEAD EXEMPTION

450,000
440,000
430,000

INCREASED PROPERTY TAXES

9,000 TAXES WITHOUT HOMESTEAD


8,800 TAXES WITH 10K HOMESTEAD EXEMPTION
8,600 TAXES WITH 20K HOMESTEAD EXEMPTION
-----------------200
GOVERNOR'S
BUDGET
TAX CHANGE
CURRENT LAW PROPOSED TAX
INCREASE
2015
2017
(DECREASE)
-------------------------- ----------------------- -----------------------

MAINE INCOME TAX CALCULATION


SOCIAL SECURITY BENEFITS
TAXABLE INVESTMENTS
NON TAXABLE BONDS

35,000
35,000
65,000
65,000
15,000
15,000
------------------------- -------------------------115,000
115,000

TOTAL INCOME
LESS: SOCIAL SECURITY INCOME
LESS: NON TAXABLE BONDS

(35,000)
(35,000)
(15,000)
(15,000)
------------------------- ------------------------65,000
65,000

MAINE ADJUSTED GROSS INCOME


EXEMPTIONS
ITEMIZED DEDUCTIONS
MORTGAGE INTEREST
PROPERTY TAXES (440,000 AT $20 PER 1,000)
CHARITABLE CONTRIBUTIONS
AUTO EXCISE TAX
TOTAL ITEMIZE DEDUCTIONS / STD DEDUCTION

(A)

(CC)

(A1)

(8,200)

(8,200)

0
(8,800)
(30,000)
(300)
-------------------------(39,100)

(15,700)

---------------------------------------------------17,700
41,100

MAINE TAXABLE INCOME


MAINE TAX BEFORE CREDITS - 2015 LAW
INFLATION ADJUSTMENT FOR BRACKETS - 2017
PROPERTY TAX FAIRNESS CREDIT

(A2)

NET MAINE INCOME TAX


FEDERAL INCOME TAX CALCULATION
INCOME
LESS: NON TAXABLE BONDS
LESS: 15% OF SOCIAL SECURITY
EXEMPTIONS
ITEMIZED DEDUCTIONS BEFORE STATE INCOME TAX DEDUCTION
ITEMIZED DEDUCTION FOR INCREASED PROPERTY TAX
STATE INCOME TAX DEDUCTION
FEDERAL TAXABLE INCOME
FEDERAL INCOME TAX

(1)

SALES TAX INCREASE

471
(26)

1,248

0
------------------------- -------------------------445
1,248

115,000
(15,000)
(5,250)
(8,200)
(39,100)
200
(445)
(1,248)
------------------------- -------------------------47,005
46,402

803

115,000
(15,000)
(5,250)
(8,200)
(39,100)

(200)

6,128

6,038

(90) (2)

2,000

2,800

500

NET TAX (DECEASE) INCREASE BEFORE IMPACT OF REVENUE SHARING LOSS

-------------------------1,012
=============

(CC) - UNDER CURRENT LAW IN 2017 THERE IS NO LIMITATION ON CHARITABLE CONTRIBUTIONS


(1) - USED 2015 FEDERAL TAX RATES WHICH FOR MARRIED IS $1,845 + 15% OF EXCESS OVER $18,450
(2) - THIS TAXPAYER HAS A MARGINAL FEDERAL TAX RATE OF 15% AND BOTH PROPERTY TAXES AND
MAINE INCOME TAXES ARE DEDUCTIBLE, BUT SALES TAXES ARE NOT DEDUCTIBLE FOR FEDERAL INCOME
TAX PURPOSES (NET DEDUCTIBLE TAXES DECREASED BY $603 X 15% = 90)
(A) - PROJECTED EXEMPTION FOR 2017 WILL INCREASE FROM 4,000 TO 4,100.
(A1) - THE STANDARD DEDUCTION FOR 2015 IS 12,600 AND WOULD BE 13,100 FOR 2017 BASED ON 2.1% INFLATION ADJUSTMENT
THE ADDITIONAL STD DED FOR OVER AGE 65 IS AN ADDITIONAL 2,600 OR TOTAL OF 15,700.
(A2) - ADJUSTED TAX BRACKETS BY 2.1% INFLATION ADJUSTMENT.

EXAMPLE C
GOV_TAX_PLAN_2015_ATTACHMENTS
EXAMPLE C
TAX CALCULATION FOR A MARRIED COUPLE WITH 1 CHILD UNDER AGE 65 - PORTLAND
PORTLAND PROPERTY FULL VALUE
ASSESSED VALUE AFTER HOMESTEAD EXEM
INCREASED PROPERTY TAXES

330,000
320,000

6,600 TAXES WITHOUT HOMESTEAD


6,400 TAXES WITH HOMESTEAD EXEMPTION
-----------------200
GOVERNOR'S
BUDGET
TAX CHANGE
CURRENT LAW PROPOSED TAX
INCREASE
2015
2016
(DECREASE)
-------------------------- ----------------------- -----------------------

MAINE INCOME TAX CALCULATION


INCOME

115,000

115,000

EXEMPTIONS
ITEMIZED DEDUCTIONS
MORTGAGE INTEREST (250,000 AT 5.0%)
PROPERTY TAXES (320,000 AT $20 PER 1,000)
CHARITABLE CONTRIBUTIONS
AUTO EXCISE TAX

(A)

(12,150)

(12,150)

TOTAL ITEMIZE DEDUCTIONS / STD DEDUCTION

(A1)

(12,500)
(6,400)
(1,500)
(300)
-------------------------(20,700)

(12,850)

-------------------------- -------------------------82,150
90,000

MAINE TAXABLE INCOME


MAINE TAX BEFORE CREDITS - 2015 LAW
INFLATION ADJUSTMENT FOR BRACKETS - 2016
PROPERTY TAX FAIRNESS CREDIT
NET MAINE INCOME TAX
FEDERAL INCOME TAX CALCULATION
INCOME
EXEMPTIONS
ITEMIZED DEDUCTIONS BEFORE STATE INCOME TAX DEDUCTION
ITEMIZED DEDUCTION FOR INCREASED PROPERTY TAX
STATE INCOME TAX DEDUCTION
FEDERAL TAXABLE INCOME
FEDERAL INCOME TAX

5,245
(26)

(A2)

4,060

0
-------------------------- -------------------------5,219
4,060

(1,160)

115,000
115,000
(12,150)
(12,150)
(20,700)
(20,700)
0
(200)
(5,219)
(4,060)
-------------------------- -------------------------76,931
77,891

(1)

SALES TAX INCREASE

NET TAX (DECEASE) INCREASE BEFORE IMPACT OF REVENUE SHARING LOSS

200

10,821

11,061

240

1,800

2,400

600

(2)

-------------------------(120)
=============

(1) - USED 2015 FEDERAL TAX RATES WHICH FOR MARRIED IS $10,313 + 25% OF EXCESS OVER $74,900
(2) - THIS TAXPAYER HAS A MARGINAL FEDERAL TAX RATE OF 25% AND BOTH PROPERTY TAXES AND
MAINE INCOME TAXES ARE DEDUCTIBLE, BUT SALES TAXES ARE NOT DEDUCTIBLE FOR FEDERAL INCOME
TAX PURPOSES (NET DEDUCTIBLE TAXES DECREASED BY $960 X 25% = 240)
(A) - PROJECTED EXEMPTION FOR 2016 WILL INCREASE FROM 4,000 TO 4,050.
(A1) - THE STANDARD DEDUCTION FOR 2015 IS 12,600 AND WOULD BE 12,850 FOR 2016 BASED ON 2.1% INFLATION ADJUSTMENT
(A2) - ADJUSTED TAX BRACKETS BY 2.1% INFLATION ADJUSTMENT.

EXAMPLE B
GOV_TAX_PLAN_2015_ATTACHMENTS
EXAMPLE B
TAX CALCULATION FOR A MARRIED COUPLE WITH NO KIDS UNDER AGE 65 - PORTLAND
PORTLAND
PROPERTY TAX
PROPERTY FMV
PROPERTY ASSESSED VALUE WITH 10K HOMESTEAD

280,000
270,000

5,400

GOVERNOR'S
BUDGET
TAX CHANGE
CURRENT LAW PROPOSED TAX
INCREASE
2015
2016
(DECREASE)
-------------------------- ----------------------- ----------------------INCOME

70,000

70,000

EXEMPTIONS
(2 X 4,050) (A)
ITEMIZED DEDUCTIONS
MORTGAGE INTEREST (210,000 AT 5.0%)
PROPERTY TAXES (270,000 AT $20 PER 1,000)
CHARITABLE CONTRIBUTIONS
AUTO EXCISE TAX

(8,100)

(8,100)

TOTAL ITEMIZE DEDUCTIONS / STD DEDUCTION (A)

(10,500)
(5,400)
(250)
(150)
-------------------------(16,300)

(12,850)

TAXABLE INCOME

-------------------------- -------------------------45,600
49,050

MAINE TAX BEFORE CREDITS - 2015 LAW


INFLATION ADJUSTMENT FOR BRACKETS - 2016
TAX FAIRNESS CREDIT
PROPERTY TAX FAIRNESS CREDIT
NET MAINE INCOME TAX
IMPACT OF LOSS OF HOMESTEAD
PROPERTY TAX FAIRNESS CREDIT

(A1)
(A3)

2,339
(26)

1,705

0
0
-------------------------- -------------------------2,314
1,705
0

200

(PTFC)

NET SAVINGS IN FEDERAL DEDUCTIBLE TAXES


SALES TAX INCREASE

(609)
200
0
-------------------------(409)
425
-------------------------16

NET TAX INCREASE (DECREASE BEFORE IMPACT OF ITEMIZED DEDUCTIONS


MAINE INCOME TAX IMPACT OF PROPERTY TAX CHANGES
FEDERAL INCOME TAX IMPACT

(16)
64
-------------------------48

IMPACT OF ITEMIZED DEDUCTION CHANGES

--------------------------64
==============

NET TAX INCREASE BEFORE IMPACT OF LOSS OF REVENUE SHARING

IN ADDITION TO THE TAX INCREASE ABOVE UNDER THE OLD CIRCUIT BREAKER PROGRAM ELIMINATED
IN 2013 THIS TAXPAYER WOULD HAVE RECEIVED A MUCH LARGER PROPERTY TAX REFUND AS FOLLOWS:

TOTAL INCOME ABOVE


TOTAL PROPERTY TAX (4,750 LIMIT) / (4,000 LIMIT)
4% OF INCOME BASE
6% OF BASE
EXCESS
CIRCUIT BREAKER REFUND AT 50%
TAX FAIRNESS CREDIT AT 100%

CIRCUIT
BREAKER
PTFC
-------------------------- -------------------------70,000
70,000
4,750
2,800

4,000

4,200
-------------------------- -------------------------1,950
0
975
0

(PTFC)

(A) - PROJECTED EXEMPTION FOR 2016 WILL INCREASE FROM 4,000 TO 4,050.
(A1) - THE STANDARD DEDUCTION FOR 2015 IS 12,600 AND WOULD BE 12,850 FOR 2016 BASED ON 2.1% INFLATION ADJUSTMENT
(A2) - ADJUSTED TAX BRACKETS BY 2.1% INFLATION ADJUSTMENT.

EXAMPLE A
GOV_TAX_PLAN_2015_ATTACHMENTS
EXAMPLE A
TAX CALCULATION FOR A MARRIED COUPLE WITH NO KIDS BOTH OVER AGE 65 & NO ITEMIZED DEDUCTIONS
WESTBROOK
PROPERTY TAX
PROPERTY FMV
PROPERTY ASSESSED VALUE WITH 10K HOMESTEAD
PROPERTY ASSESSED VALUE WITH 20K HOMESTEAD

200,000
190,000
180,000

GOVERNOR'S
BUDGET
TAX CHANGE
CURRENT LAW PROPOSED TAX
INCREASE
2015
2016
(DECREASE)
-------------------------- ----------------------- ----------------------27,000
27,000
23,000
23,000
------------------------- -------------------------50,000
50,000

SOCIAL SECURITY INCOME


PENSION & OTHER INCOME
INCOME
EXEMPTIONS
(2 X 4,050)
STD DEDUCTION (A)
SOCIAL SECURITY INCOME EXCLUSION

3,268
3,096

(A)

TAXABLE INCOME
MAINE TAX BEFORE CREDITS - 2015 LAW
TAX FAIRNESS CREDIT
PROPERTY TAX FAIRNESS CREDIT
NET MAINE INCOME TAX

(A1)

(8,100)
(8,100)
(15,400)
(15,400)
(27,000)
(27,000)
---------------------------------------------------(500)
(500)
0

0
0
(96)
------------------------- -------------------------0
(96)

IMPACT OF 10k INCREASE IN HOMESTEAD EXEMPTION


PROPERTY TAX FAIRNESS CREDIT
(PTFC)

(172)

NET SAVINGS IN FEDERAL DEDUCTIBLE TAXES


SALES TAX INCREASE

(96)

(172)
0
-------------------------(268)
375
-------------------------107
==============

NET TAX INCREASE BEFORE IMPACT OF LOSS OF REVENUE SHARING

IN ADDITION TO THE TAX INCREASE ABOVE UNDER THE OLD CIRCUIT BREAKER PROGRAM ELIMINATED
IN 2013 THIS TAXPAYER WOULD HAVE RECEIVED A MUCH LARGER PROPERTY TAX REFUND AS FOLLOWS:

TOTAL INCOME ABOVE


TOTAL PROPERTY TAX (4,750 LIMIT) / (4,000 LIMIT)
4% OF INCOME BASE
6% OF BASE
EXCESS
CIRCUIT BREAKER REFUND AT 50%
TAX FAIRNESS CREDIT AT 100%

CIRCUIT
NEW
CURRENT LAW
BREAKER
PTFC
PTFC
------------------------- ------------------------- -------------------------50,000
50,000
56,200
3,268
2,000

3,096

3,268

3,000
3,372
------------------------- ------------------------- -------------------------1,268
96
0
634
96

(A) - PROJECTED EXEMPTION FOR 2016 WILL INCREASE FROM 4,000 TO 4,050.
(A1) - THE STANDARD DEDUCTION FOR 2015 IS 12,600 AND WOULD BE 12,850 FOR 2016 BASED ON 2.1% INFLATION ADJUSTMENT
THE ADDITIONAL STD DED FOR OVER AGE 65 IS AN ADDITIONAL 2,550 OR TOTAL OF 15,400.

ATTACHMENT 6
GOV_TAX_PLAN_2015_ATTACHMENTS
ATTACHMENT 6
COMPARISON OF MAINE CONSUMPTION TAXES TO INCOME TAXES

(1)
PROPOSED
ACTUAL
% OF
BUDGET
% OF
BUDGET
% OF
FY 2009
TOTAL
FY 2015
TOTAL
FY 2017
TOTAL
----------------------- ----------- ------------------------ ----------- ----------------------- ----------CONSUMPTION TAXES
SALES ,USE SERVICE PROVIDER TAXES
CIGARETTE & TOBACCO TAX
FUEL TAX
INSURANCE COMPANY TAX
SUBTOTAL
INCOME TAXES
INDIVIDUAL INCOME TAX
CORPORATE INCOME TAX
SUBTOTAL

TOTAL CONSUMPTION & INCOME TAXES

944,600,000
161,000,000
234,400,000
82,300,000
-----------------------1,422,300,000 50.1%

1,244,308,294
134,890,000
217,413,634
82,250,000
-----------------------1,678,861,928

1,622,404,228
132,079,000
224,110,357
82,700,000
-----------------------50.4% 2,061,293,585

62.4%

1,266,400,000
149,300,000
-----------------------1,415,700,000 49.9%

1,462,017,200
190,226,769
-----------------------1,652,243,969

1,056,990,642
185,076,726
-----------------------49.6% 1,242,067,368

37.6%

----------------------------------------------2,838,000,000 100.0%
3,331,105,897
============
============

TOTAL CONSUMPTION TAXES IN 2017


TOTAL ESTIMATED REVENUE FROM TAXING NEW SERVICES
PERCENTAGE OF CONSUMPTION TAXES FROM NEW SERVICES

100.0%

(A)

-----------------------3,303,360,953
============

100.0%

2,061,293,585
118,961,300
5.8% (B)
============

THE ARGUMENT MADE THAT THE EXPANSION OF THE SALES TAX TO SERVICES WILL HELP STABILIZE TAX COLLECTIONS
IS VERY WEAK, BECAUSE THE EXPANSION REPRESENTS LESS THAN 6% OF TOTAL CONSUMPTION TAXES.

(1) - MAINE REVENUE SERVICES ACTUAL COLLECTIONS


(A) - MAINE REVENUE SERVICES ESTIMATE GIVEN TO APPROPRIATIONS COMMITTEE.

ATTACHMENT 5
GOV_TAX_PLAN_2015_ATTACHMENTS
ATTACHMENT 5

ESTIMATED IMPACT OF ELIMINATION OF INCOME TAX AN REPLACING 100% OF THE TAX WITH SALES TAX - MAINE RESIDENTS - YEAR ENDED 12/31/15

NUMBER OF TAX FAMILIES

BOTTOM 70%
NEXT 10%
BOTTOM 80%
NEXT 10%
BOTTOM 90%
NEXT 9%
TOP 1%
TOP 10%
< $66,980
$66,981 - $86,789
< $86,789
$86,789 - $120,621
< $120,622 $120,622 - $325,973 OVER $325,973
TOTAL
---------------------- -------------------------- -------------------------- ----------------------------- ---------------------- ------------------------- -------------------------- ------------------------- -------------------------(1)
474,229
67,747
541,976
67,748
609,724
60,972
6,775
67,747
677,471

PERCENTAGE OF INCOME TAX PAID


PERCENTAGE OF SALES TAX PAID

(1)
(2)

INCOME TAX (REDUCTION)


SALES TAX INCREASE DIRECTLY PAID
SALES TAX INCREASE INDIRECTLY PAID BY BUSINESS
NET MAINE TAX INCREASE (DECREASE)

15.51%
40.40%

10.12%
12.50%

25.63%
52.90%

17.51%
14.00%

43.14%
66.90%

34.42%
22.10%

22.44%
11.00%

56.86%
33.10%

100.00%
100.00%

(208,330,320)
(135,931,840)
(344,262,160)
(235,194,320) (579,456,480)
(462,329,440)
(301,414,080)
(763,743,520)
(1,343,200,000)
353,904,000
109,500,000
463,404,000
122,640,000
586,044,000
193,596,000
96,360,000
289,956,000
876,000,000
79,628,400
24,637,500
104,265,900
27,594,000
131,859,900
43,559,100
21,681,000
65,240,100
197,100,000
---------------------- -------------------------- -------------------------- ----------------------------- ---------------------- ------------------------- -------------------------- ------------------------- -------------------------225,202,080
(1,794,340)
223,407,740
(84,960,320)
138,447,420
(225,174,340)
(183,373,080)
(408,547,420)
(270,100,000)

ASSUMPTIONS:

TOTAL INDIVIDUAL INCOME TAX PER YEAR


PERCENTAGE OF TAXES PAID BY INDIVIDUAL MAINE RESIDENTS
MAINE RESIDENTS TAXES PAID DIRECTLY

INCOME TAX
SALES TAX
---------------------- -------------------------(A) 1,460,000,000
1,460,000,000
92%
60% (B)
---------------------- -------------------------1,343,200,000
876,000,000

MAINE SALES TAX PAID BY BUSINESS


MAINE SALES TAXES PAID BY BUSINESS PASSED ON TO INDIVIDUALS

394,200,000
197,100,000

(B) 27% (3)


(2) 50% (3)

MAINE SALES TAXES PAID BY NON RESIDENTS

189,800,000

(B) 13%

(1) - THE NUMBER OF TAX FAMILIES AND THE PERCENTAGE OF INCOME TAX PAID IS FROM THE MAINE REVENUE SERVICES ESTIMATE FOR THE YEAR 2014. ASSUMED SAME NUMBERS FOR YEAR 2015.
(2) - THE PERCENTAGE OF SALES TAX PAID BY MAINE RESIDENTS COMES FROM THE MAINE REVENUE SERVICES "MAINE TAX INCIDENCE STUDY" PRESENTED TO THE JOINT STANDING COMMITTEE ON TAXATION ON AUGUST 15, 2011.
(A) - TOTAL INDIVIDUAL INCOME TAX BUDGETED FOR THE FISCAL YEAR ENDED 6/30/2015 WAS $1,455,836,200, PER THE MAINE OFFICE OF THE STATE CONTROLLER. ASSUMED ROUNDED $1.46 BILLION FOR CALENDAR YEAR 2015.
(B) - THE PERCENTAGE OF SALES TAX PAID BY RESIDENTS INDIVIDUALS, NON RESIDENTS AND BUSINESSES BASED ON MAINE REVENUE SERVICES ESTIMATE FOR THE CALENDAR YEAR 2013.
(3) - WHILE THE NET IMPACT ON MAINE INDIVIDUAL RESIDENTS IS A SMALL NET TAX DECREASE, THIS IS MORE THAN OFFSET BY A $197.1 MILLION SALES (USE) TAX INCREASE ON BUSINESSES THAT WILL INCREASE THERE COSTS
THAT I HAVE ASSUMED WILL BE PASSED ON TO NON MAINE CUSTOMERS.

ATTACHMENT 4
GOV_TAX_PLAN_2015_ATTACHMENTS
ATTACHMENT 4
SUMMARY OF TOTAL STATE & LOCAL TAXES PAID BY MAINE RESIDENTS DIRECTLY IN 2009 (EXCLUDES TAXES PAID BY BUSINESSES) (A)

DECILE
-------------------BOTTOM 50%

AVERAGE NET
AVERAGE MAINE
STATE & LOCAL TAXES
------------------------------------------------------------------------------------------------------------------------------------AVERAGE PROPERTY
SALES &
INCOME
TOTAL
% OF
FEDERAL
%
FAMILIES INCOME RANGE
INCOME
TAX
EXCISE TAX
TAX
TAX
INCOME TAX BENEFIT AMOUNT OF INCOME TOTAL INCOME
-------------------------------------------- ----------------- ------------------- ------------------- ------------------ ----------------- ----------------- --------------------- ----------------- ------------------- -----------------------336,917
UP TO $30,810
15,116
746
681
115
1,542
10.20%
(10)
1,532
10.14%
5,092,900,000

50% - 70%

134,767

$30,811 - $55,471

41,736

1,875

1,322

883

4,080

9.77%

(123)

3,957

9.48%

5,624,700,000

70% - 80%

67,381

$55,472 - $74,757

64,552

2,666

1,490

1,793

5,949

9.22%

(361)

5,588

8.66%

4,349,600,000

80% - 90%

67,383

$74,758 - $108,724

89,852

3,498

1,505

3,304

8,306

9.24%

(800)

7,507

8.35%

6,054,500,000

90% - 95%

33,693

$108,725 - $145,201

124,091

5,336

2,095

5,292

12,724

10.25%

(1,948)

10,776

8.68%

4,181,000,000

95% - 99%

26,952

$145,202 - $323,241

197,202

6,826

3,302

9,454

19,582

9.93%

(2,978)

16,604

8.42%

5,315,000,000

TOP 1%

6,738

OVER $323,241

733,600

9,930

11,754

38,854

60,539

45,897

1,924

1,153

1,400

4,477

-----------------673,831

BOTTOM 99%

667,093

UP TO $323,241

8.25%
(11,811)
48,728
6.64%
4,943,000,000
(2)
(1)
------------------- ------------------- ------------------- ------------------ ----------------- ----------------- --------------------- ------------------ ------------------- -----------------------52,774
2,004
1,259
1,775
5,037
9.54%
(480)
4,557
8.64% 35,560,700,000

9.75%
(2)

(366)

4,111

8.96%
(1)

30,617,700,000

(1) - THE BOTTOM 99% OF MAINE RESIDENTS PAY NET (AFTER FEDERAL TAX BENEFIT) AVERAGE STATE & LOCAL TAXES AT 35% HIGHER RATES THAN THE TOP 1%.
(2) - THE BOTTOM 99% OF MAINE RESIDENTS PAY NET (BEFORE FEDERAL TAX BENEFIT) AVERAGE STATE & LOCAL TAXES AT 18.2% HIGHER RATES THAN THE TOP 1%.
(A) - ALL NUMBERS ARE BASED ON THE MAINE REVENUE SERVICES REPORT PRESENTED BY DR. MICHAEL ALLEN TO THE TAXATION COMMITTEE ON AUGUST 15, 2011.

ATTACHMENT 3
GOV_TAX_PLAN_2015_ATTACHMENTS
ATTACHMENT 3
TAX CALCULATION FOR YEARS 2016 - 2019 GOVERNOR'S PROPOSAL

INCOME TAX CHANGES

MARRIED WITH TWO CHILDREN -TAX CAL


MAINE ADJUSTED GROSS INCOME
EXEMPTIONS
STANDARD DEDUCTION
MAINE TAXABLE INCOME
MAINE TAX
EFFECTIVE TAX RATE
TAX (REDUCTION) FROM YEAR 2016

ADDITIONAL
INCOME
TAX CUT FROM
2016
2017
2018
2019
2017 - 2019
-------------------- -------------------- -------------------- -------------------- -------------------------

129,000
(16,200)
(12,800)
--------------------100,000
4,635
4.63%

MAINE TAXABLE INCOME


MAINE TAX
EFFECTIVE TAX RATE
TAX (REDUCTION) FROM PRIOR 2016

256,200
15,491
6.05%

MAINE TAXABLE INCOME


MAINE TAX
EFFECTIVE TAX RATE
TAX (REDUCTION) FROM PRIOR 2016

287,450
17,663
6.14%

MAINE TAXABLE INCOME


MAINE TAX
EFFECTIVE TAX RATE
TAX (REDUCTION) FROM PRIOR 2016

350,000
22,010
6.29%

MAINE TAXABLE INCOME


MAINE TAX
EFFECTIVE TAX RATE
TAX (REDUCTION) FROM PRIOR 2016

500,000
32,435
6.49%

MAINE TAXABLE INCOME


MAINE TAX
EFFECTIVE TAX RATE
TAX (REDUCTION) FROM PRIOR 2016

1,000,000
67,185
6.72%

MAINE TAXABLE INCOME


MAINE TAX
EFFECTIVE TAX RATE
TAX (REDUCTION) FROM PRIOR 2016

2,000,000
136,685
6.83%

129,000
0
0
------------------------100,000
100,000
4,635
4.63%
0
0
=============

100,000
4,635
4.63%
0

100,000
4,635
4.63%
0

256,200
15,491
6.05%
0

256,200
15,179
5.92%
(312)

256,200
14,788
5.77%
(703)

287,450
17,522
6.10%
(141)

287,450
17,288
6.01%
(375)

287,450
16,819
5.85%
(844)

350,000
21,588
6.17%
(422)

350,000
21,041
6.01%
(969)

350,000
20,885
5.97%
(1,125)

500,000
31,338
6.27%
(1,097)

500,000
30,041
6.01%
(2,394)

500,000
29,510
5.90%
(2,925)

1,000,000
63,838
6.38%
(3,347)

1,000,000
60,041
6.00%
(7,144)

1,000,000
58,260
5.83%
(8,925)

2,000,000
128,838
6.44%
(7,847)

2,000,000
120,041
6.00%
(16,644)

2,000,000
115,760
5.79%
(20,925)

256,200

(1,015)
==============

287,450

(1,359)
=============

350,000

(2,516)
=============

500,000

(6,416)
=============

1,000,000

(19,416)
==============

2,000,000

(45,416)
=============

THE ABOVE ILLUSTRATES THAT A MARRIED TAXPAYER WITH TWO CHILDREN AND INCOME OF $129,000 WILL
HAVE NO ADDITIONAL INCOME TAX CUTS IN 2017-2019, WHILE HIGHER INCOME TAXPAYERS GET ADDITIONAL
INCOME TAX CUTS THROUGH 2019. FOR EXAMPLE A INDIVIDUAL WITH $2.0 MILLION INCOME WILL HAVE AN
ADDITIONAL TAX SAVINGS OF $45,416 FROM 2017-2019.
ESTATE TAX CHANGES
IN ADDITION TO THE ABOVE THE ESTATE TAX ELIMINATION APPLIES TO DEATHS IN YEAR 2017, WHICH WOULD
IMPACT 2018 ESTATE TAX COLLECTIONS, WHICH IS BEYOND THE TWO YEAR BUDGET.

ATTACHMENT 2
GOV_TAX_PLAN_2015_ATTACHMENTS
ATTACHMENT 2

CALCULATION OF PROPERTY TAX REBATES UNDER THE MAINE CIRCUIT BREAKER TAX RELIEF PROGRAM - ELIMINATED IN 2013
COMPARED TO BUDGET TAX FAIRNESS CREDIT - STARTING IN 2016
SOUTH PORTLAND RESIDENTS

NOTE:
1). IN THE 80 EXAMPLES BELOW THE OLD CIRCUIT BREAKER PROGRAM WAS BETTER THAN THE PROPOSED 2016 LAW IN 70 OUT OF 80 SCENARIOS.
2). THE AVERAGE TAX REFUND BELOW UNDER THE OLD CIRCUIT BREAKER WAS $648, WHILE THE AVERAGE FOR THE NEW PROPOSED 2016 LAW WAS ONLY $310 AND THE CURRENT 2015 LAW IS ONLY $157.
3). THE MAINE REVENUE SERVICES REPORTED THAT UNDER THE OLD CIRCUIT BREAKER PROGRAM FOR REFUNDS FILED IN THE PERIOD 8/1/11-5/31/12 THERE WERE 88,864 REFUNDS TOTALING $42.6 MILLION OR AN AVERAGE OF $479. THIS NUMBER REPRESENTS ONLY 80%
OF THE FULL OLD CIRCUIT BREAKER REFUNDS AS THE LEGISLATURE CUT THE REFUNDS BY 20% IN THE FINAL BUDGET. PRIOR TO THE 20% BUDGET CUT THE CIRCUIT BREAKER PROGRAM REFUNDS WOULD HAVE TOTALED ABOUT $58 MILLION IN 2013 (MRS ESTIMATE).
4). IN 2013, A EARLIER VERSION OF THE TAX FAIRNESS CREDIT WAS BUDGETED TO PROVIDE $34 MILLION IN TAX CREDITS. THE ACTUAL ENDED UP TO BE ONLY ABOUT $21 MILLION. THE CURRENT VERSION OF THE TAX FAIRNESS CREDIT FOR 2014 (AND 2015) HAS BEEN
OVER ESTIMATED IN THE BUDGET. IT IS CLEAR THAT THE CREDITS WILL BE ABOUT $20 MILLION OR LESS, WHICH THE ABOVE EXAMPLES ILLUSTRATE. AT $20 MILLION THE 2015 LAW IS A DROP OF ABOUT $38 MILLION FROM THE $58 MILLION FROM THE CIRCUIT BREAKER LAW.
5). THE GOVERNOR OFFICE HAS ESTIMATED THAT THE PROPOSED 2016 TAX FAIRNESS CREDIT WILL BE ABOUT $90 MILLION IN 2016. THAT ESTIMATE IS CLEARLY WAY TOO HIGH, AS THE BELOW ILLUSTRATES IT WILL BE MORE LIKE $ 35 - $40 MILLION. IF THE 2016 BUDGET
HAS $90 MILLION FOR THE TAX FAIRNESS CREDIT, THEN WHY NOT JUST BRING BACK THE OLD CIRCUIT BREAKER PROGRAM LAW AND EXPAND IT AS IT HAS A KNOWN HISTORY AND A MORE ACCURATE ESTIMATE OF THE CREDITS. THE CREDIT IS OVERSTATED BY AT LEAST $50 MILLION.
SINGLE (UNDER AGE 65) INCOME OF
SP HOME TAXABLE ASSESSED VALUE
PROPERTY TAX ASSESSED ON APRIL 1, 2014

25,000
140,000
2,394

CALCULATION CIRCUIT BREAKER REFUND


INCOME X 8%
PROPERTY TAX (LIMITED TO 3,650)
EXCESS OVER 8% REFUND AT 100%

(A)

INCOME X 4%
PROPERTY TAX PAID UP TO 8%
DIFFERENCE
TAX REFUND AT 50%

(B)

2015 TAX FAIRNESS CREDIT (LIMITED TO $600)


CIRCUIT BREAKER REFUND 2013 LAW

(A) + (B)

25,000
150,000
2,565

25,000
160,000
2,736

25,000
170,000
2,907

40,000
150,000
2,565

40,000
160,000
2,736

40,000
170,000
2,907

40,000
180,000
3,078

50,000
170,000
2,907

50,000
180,000
3,078

50,000
190,000
3,249

50,000
200,000
3,420

65,000
200,000
3,420

65,000
210,000
3,591

65,000
220,000
3,762

65,000
230,000
3,933

2,000
2,000
2,000
2,000
2,394
2,565
2,736
2,907
------------------- ------------------- ------------------- ------------------394
565
736
907

3,200
3,200
3,200
3,200
2,565
2,736
2,907
3,078
------------------- ------------------- ------------------- ------------------0
0
0
0

4,000
4,000
4,000
4,000
2,907
3,078
3,249
3,420
------------------- ------------------- ------------------- ------------------0
0
0
0

5,200
5,200
5,200
5,200
3,420
3,591
3,650
3,650
------------------- ------------------- ------------------- ------------------0
0
0
0

1,000
1,000
1,000
1,000
2,000
2,000
2,000
2,000
------------------- ------------------- ------------------- ------------------1,000
1,000
1,000
1,000

1,600
1,600
1,600
1,600
2,565
2,736
2,907
3,078
------------------- ------------------- ------------------- ------------------965
1,136
1,307
1,478

2,000
2,000
2,000
2,000
2,907
3,078
3,249
3,420
------------------- ------------------- ------------------- ------------------907
1,078
1,249
1,420

2,600
2,600
2,600
2,600
3,420
3,591
3,650
3,650
------------------- ------------------- ------------------- ------------------820
991
1,050
1,050

500

500

500

500

483

568

654

739

454

539

625

710

410

496

525

447

533

600

600

83

168

236

196

525
0

894

1,065

1,236

1,407

483

568

654

739

454

539

625

710

410

496

525

525

TAX FAIRNESS CREDIT CALCULATION


PROPERTY TAXES (LIMITED TO 3,000)
6% OF INCOME

2,394
2,565
2,736
2,907
1,500
1,500
1,500
1,500
------------------- ------------------- ------------------- ------------------894
1,065
1,236
1,407

TAXES IN EXCESS OF 6% OF INCOME


2016 TAX FAIRNESS CREDIT AT 100% (LIMITED TO $1,000)

CIRCUIT BREAKER GREATER (LESS) THAN TAX FAIRNESS

SINGLE (AGE 65 OR OLDER) INCOME OF


SP HOME TAXABLE ASSESSED VALUE
PROPERTY TAX ASSESSED ON APRIL 1, 2014
2015 TAX FAIRNESS CREDIT (LIMITED TO $900)
CALCULATION OF PROPERTY TAX REFUND
INCOME X 8%
PROPERTY TAX (LIMITED TO 3,650)
EXCESS OVER 8% REFUND AT 100%

(A)

INCOME X 4%
PROPERTY TAX PAID UP TO 8%
DIFFERENCE
TAX REFUND AT 50%
CIRCUIT BREAKER REFUND 2013 LAW

(B)
(A) + (B)

894

1,000

1,000

1,000

0
65
236
407
========== ========== ========== ==========

2,565
2,736
2,907
3,000
2,400
2,400
2,400
2,400
------------------- ------------------- ------------------- ------------------165
336
507
600
165

336

507

600

318
232
147
139
========== ========== ========== ==========

2,907
3,000
3,000
3,000
3,000
3,000
3,000
3,000
------------------- ------------------- ------------------- ------------------0
0
0
0
0

454
539
625
710
========== ========== ========== ==========

3,000
3,000
3,000
3,000
3,900
3,900
3,900
3,900
------------------- ------------------- ------------------- ------------------0
0
0
0
0

410
496
525
525
========== ========== ========== ==========

25,000
140,000
2,394

25,000
150,000
2,565

25,000
160,000
2,736

25,000
170,000
2,907

40,000
150,000
2,565

40,000
160,000
2,736

40,000
170,000
2,907

40,000
180,000
3,078

50,000
170,000
2,907

50,000
180,000
3,078

50,000
190,000
3,249

50,000
200,000
3,420

65,000
200,000
3,420

65,000
210,000
3,591

65,000
220,000
3,762

65,000
230,000
3,933

447

533

618

704

83

168

254

300

2,000
2,000
2,000
2,000
2,394
2,565
2,736
2,907
------------------- ------------------- ------------------- ------------------394
565
736
907

3,200
3,200
3,200
3,200
2,565
2,736
2,907
3,078
------------------- ------------------- ------------------- ------------------0
0
0
0

4,000
4,000
4,000
4,000
2,907
3,078
3,249
3,420
------------------- ------------------- ------------------- ------------------0
0
0
0

5,200
5,200
5,200
5,200
3,420
3,591
3,650
3,650
------------------- ------------------- ------------------- ------------------0
0
0
0

1,000
1,000
1,000
1,000
2,000
2,000
2,000
2,000
------------------- ------------------- ------------------- ------------------1,000
1,000
1,000
1,000

1,600
1,600
1,600
1,600
2,565
2,736
2,907
3,078
------------------- ------------------- ------------------- ------------------965
1,136
1,307
1,478

2,000
2,000
2,000
2,000
2,907
3,078
3,249
3,420
------------------- ------------------- ------------------- ------------------907
1,078
1,249
1,420

2,600
2,600
2,600
2,600
3,420
3,591
3,650
3,650
------------------- ------------------- ------------------- ------------------820
991
1,050
1,050

500

500

500

500

483

568

654

739

454

539

625

710

410

496

525

525

894

1,065

1,236

1,407

483

568

654

739

454

539

625

710

410

496

525

525

TAX FAIRNESS CREDIT CALCULATION


PROPERTY TAXES (LIMITED TO 3,000)
6% OF INCOME
TAXES IN EXCESS OF 6% OF INCOME
2016 TAX FAIRNESS CREDIT AT 100% (LIMITED TO $1,500)

2,394
2,565
2,736
2,907
1,500
1,500
1,500
1,500
------------------- ------------------- ------------------- ------------------894
1,065
1,236
1,407
894

1,065

1,236

1,407

2,565
2,736
2,907
3,000
2,400
2,400
2,400
2,400
------------------- ------------------- ------------------- ------------------165
336
507
600
165

336

507

600

2,907
3,000
3,000
3,000
3,000
3,000
3,000
3,000
------------------- ------------------- ------------------- ------------------0
0
0
0
0

3,000
3,000
3,000
3,000
3,900
3,900
3,900
3,900
------------------- ------------------- ------------------- ------------------0
0
0
0
0

ATTACHMENT 2
CIRCUIT BREAKER GREATER (LESS) THAN TAX FAIRNESS

MARRIED NO KIDS (UNDER AGE 65) INCOME OF


SP HOME TAXABLE ASSESSED VALUE
PROPERTY TAX ASSESSED ON APRIL 1, 2014
2015 TAX FAIRNESS CREDIT (LIMITED TO $600)
CALCULATION OF PROPERTY TAX REFUND
INCOME X 8%
PROPERTY TAX (LIMITED TO 4,750)
EXCESS OVER 8% REFUND AT 100%

(A)

INCOME X 4%
PROPERTY TAX PAID UP TO 8%
DIFFERENCE
TAX REFUND AT 50%

CIRCUIT BREAKER REFUND 2013 LAW

0
0
0
0
========== ========== ========== ==========

318
232
147
139
========== ========== ========== ==========

454
539
625
710
========== ========== ========== ==========

410
496
525
525
========== ========== ========== ==========

40,000
170,000
2,907

40,000
180,000
3,078

40,000
190,000
3,249

40,000
200,000
3,420

55,000
180,000
3,078

55,000
190,000
3,249

55,000
200,000
3,420

55,000
210,000
3,591

65,000
200,000
3,420

65,000
210,000
3,591

65,000
220,000
3,762

65,000
230,000
3,933

85,000
230,000
3,933

85,000
240,000
4,104

85,000
250,000
4,275

85,000
275,000
4,703

254

339

425

510

60

146

17

3,200
3,200
3,200
3,200
2,907
3,078
3,249
3,420
------------------- ------------------- ------------------- ------------------0
0
49
220

4,400
4,400
4,400
4,400
3,078
3,249
3,420
3,591
------------------- ------------------- ------------------- ------------------0
0
0
0

5,200
5,200
5,200
5,200
3,420
3,591
3,762
3,933
------------------- ------------------- ------------------- ------------------0
0
0
0

6,800
6,800
6,800
6,800
3,933
4,104
4,275
4,703
------------------- ------------------- ------------------- ------------------0
0
0
0

1,600
1,600
1,600
1,600
2,907
3,078
3,200
3,200
------------------- ------------------- ------------------- ------------------1,307
1,478
1,600
1,600

2,200
2,200
2,200
2,200
3,078
3,249
3,420
3,591
------------------- ------------------- ------------------- ------------------878
1,049
1,220
1,391

2,600
2,600
2,600
2,600
3,420
3,591
3,762
3,933
------------------- ------------------- ------------------- ------------------820
991
1,162
1,333

3,400
3,400
3,400
3,400
3,933
4,104
4,275
4,703
------------------- ------------------- ------------------- ------------------533
704
875
1,303

(B)

654

739

800

800

439

525

610

696

410

496

581

667

267

352

438

651

(A) + (B)

654

739

849

1,020

439

525

610

696

410

496

581

667

267

352

438

651

TAX FAIRNESS CREDIT CALCULATION


PROPERTY TAXES (LIMITED TO 4,000)
6% OF INCOME

2,907
3,078
3,249
3,420
2,400
2,400
2,400
2,400
------------------- ------------------- ------------------- ------------------507
678
849
1,020

TAXES IN EXCESS OF 6% OF INCOME


2016 TAX FAIRNESS CREDIT AT 100% (LIMITED TO $1,000)

CIRCUIT BREAKER GREATER (LESS) THAN TAX FAIRNESS

MARRIED NO KIDS (AGE 65 OR OLDER) INCOME OF


SP HOME TAXABLE ASSESSED VALUE
PROPERTY TAX ASSESSED ON APRIL 1, 2014
2015 TAX FAIRNESS CREDIT (LIMITED TO $900)
CALCULATION OF PROPERTY TAX REFUND
INCOME X 8%
PROPERTY TAX (LIMITED TO 4,750)
EXCESS OVER 8% REFUND AT 100%

(A)

INCOME X 4%
PROPERTY TAX PAID UP TO 8%
DIFFERENCE
TAX REFUND AT 50%
CIRCUIT BREAKER REFUND 2013 LAW

507

678

849

1,000

147
61
0
20
========== ========== ========== ==========

3,078
3,249
3,420
3,591
3,300
3,300
3,300
3,300
------------------- ------------------- ------------------- ------------------0
0
120
291
0

120

291

439
525
490
405
========== ========== ========== ==========

3,420
3,591
3,762
3,933
3,900
3,900
3,900
3,900
------------------- ------------------- ------------------- ------------------0
0
0
33
0

33

410
496
581
634
========== ========== ========== ==========

3,933
4,000
4,000
4,000
5,100
5,100
5,100
5,100
------------------- ------------------- ------------------- ------------------0
0
0
0
0

267
352
438
651
========== ========== ========== ==========

40,000
170,000
2,907

40,000
180,000
3,078

40,000
190,000
3,249

40,000
200,000
3,420

55,000
180,000
3,078

55,000
190,000
3,249

55,000
200,000
3,420

55,000
210,000
3,591

65,000
200,000
3,420

65,000
210,000
3,591

65,000
220,000
3,762

65,000
230,000
3,933

85,000
230,000
3,933

85,000
240,000
4,104

85,000
250,000
4,275

85,000
275,000
4,703

254

339

425

510

60

146

17

3,200
3,200
3,200
3,200
2,907
3,078
3,249
3,420
------------------- ------------------- ------------------- ------------------0
0
49
220

4,400
4,400
4,400
4,400
3,078
3,249
3,420
3,591
------------------- ------------------- ------------------- ------------------0
0
0
0

5,200
5,200
5,200
5,200
3,420
3,591
3,762
3,933
------------------- ------------------- ------------------- ------------------0
0
0
0

6,800
6,800
6,800
6,800
3,933
4,104
4,275
4,703
------------------- ------------------- ------------------- ------------------0
0
0
0

1,600
1,600
1,600
1,600
2,907
3,078
3,200
3,200
------------------- ------------------- ------------------- ------------------1,307
1,478
1,600
1,600

2,200
2,200
2,200
2,200
3,078
3,249
3,420
3,591
------------------- ------------------- ------------------- ------------------878
1,049
1,220
1,391

2,600
2,600
2,600
2,600
3,420
3,591
3,762
3,933
------------------- ------------------- ------------------- ------------------820
991
1,162
1,333

3,400
3,400
3,400
3,400
3,933
4,104
4,275
4,703
------------------- ------------------- ------------------- ------------------533
704
875
1,303

(B)

654

739

800

800

439

525

610

696

410

496

581

667

267

352

438

651

(A) + (B)

654

739

849

1,020

439

525

610

696

410

496

581

667

267

352

438

651

TAX FAIRNESS CREDIT CALCULATION


PROPERTY TAXES (LIMITED TO 4,000)
6% OF INCOME
TAXES IN EXCESS OF 6% OF INCOME
2016 TAX FAIRNESS CREDIT AT 100% (LIMITED TO $1,500)

CIRCUIT BREAKER GREATER (LESS) THAN TAX FAIRNESS

MARRIED PLUS KIDS (UNDER AGE 65) INCOME OF


SP HOME TAXABLE ASSESSED VALUE
PROPERTY TAX ASSESSED ON APRIL 1, 2014
2015 TAX FAIRNESS CREDIT (LIMITED TO $600)
CALCULATION OF PROPERTY TAX REFUND
INCOME X 8%

2,907
3,078
3,249
3,420
2,400
2,400
2,400
2,400
------------------- ------------------- ------------------- ------------------507
678
849
1,020
507

678

849

1,020

147
61
0
0
========== ========== ========== ==========

3,078
3,249
3,420
3,591
3,300
3,300
3,300
3,300
------------------- ------------------- ------------------- ------------------0
0
120
291
0

120

291

439
525
490
405
========== ========== ========== ==========

3,420
3,591
3,762
3,933
3,900
3,900
3,900
3,900
------------------- ------------------- ------------------- ------------------0
0
0
33
0

33

410
496
581
634
========== ========== ========== ==========

3,933
4,000
4,000
4,000
5,100
5,100
5,100
5,100
------------------- ------------------- ------------------- ------------------0
0
0
0
0
0

267
352
438
651
========== ========== ========== ==========

40,000
170,000
2,907

40,000
180,000
3,078

40,000
190,000
3,249

40,000
200,000
3,420

40,000
170,000
2,907

40,000
180,000
3,078

40,000
190,000
3,249

40,000
200,000
3,420

65,000
200,000
3,420

65,000
210,000
3,591

65,000
220,000
3,762

65,000
230,000
3,933

85,000
230,000
3,933

85,000
240,000
4,104

85,000
250,000
4,275

85,000
275,000
4,703

254

339

425

510

254

339

425

510

17

3,200

3,200

3,200

3,200

3,200

3,200

3,200

3,200

5,200

5,200

5,200

5,200

6,800

6,800

6,800

6,800

ATTACHMENT 2
PROPERTY TAX (LIMITED TO 4,750)
EXCESS OVER 8% REFUND AT 100%

(A)

INCOME X 4%
PROPERTY TAX PAID UP TO 8%
DIFFERENCE
TAX REFUND AT 50%
CIRCUIT BREAKER REFUND 2013 LAW

2,907
3,078
3,249
3,420
------------------- ------------------- ------------------- ------------------0
0
49
220

2,907
3,078
3,249
3,420
------------------- ------------------- ------------------- ------------------0
0
49
220

3,420
3,591
3,762
3,933
------------------- ------------------- ------------------- ------------------0
0
0
0

3,933
4,104
4,275
4,703
------------------- ------------------- ------------------- ------------------0
0
0
0

1,600
1,600
1,600
1,600
2,907
3,078
3,200
3,200
------------------- ------------------- ------------------- ------------------1,307
1,478
1,600
1,600

1,600
1,600
1,600
1,600
2,907
3,078
3,200
3,200
------------------- ------------------- ------------------- ------------------1,307
1,478
1,600
1,600

2,600
2,600
2,600
2,600
3,420
3,591
3,762
3,933
------------------- ------------------- ------------------- ------------------820
991
1,162
1,333

3,400
3,400
3,400
3,400
3,933
4,104
4,275
4,703
------------------- ------------------- ------------------- ------------------533
704
875
1,303

(B)

654

739

800

800

654

739

800

800

410

496

581

667

267

352

438

651

(A) + (B)

654

739

849

1,020

654

739

849

1,020

410

496

581

667

267

352

438

651

TAX FAIRNESS CREDIT CALCULATION


PROPERTY TAXES (LIMITED TO 5,000)
6% OF INCOME
TAXES IN EXCESS OF 6% OF INCOME
2016 TAX FAIRNESS CREDIT AT 100% (LIMITED TO $1,000)

CIRCUIT BREAKER GREATER (LESS) THAN TAX FAIRNESS

2,907
3,078
3,249
3,420
2,400
2,400
2,400
2,400
------------------- ------------------- ------------------- ------------------507
678
849
1,020
507

678

849

1,000

147
61
0
20
========== ========== ========== ==========

2,907
3,078
3,249
3,420
2,400
2,400
2,400
2,400
------------------- ------------------- ------------------- ------------------507
678
849
1,020
507

678

849

1,000

147
61
0
20
========== ========== ========== ==========

3,420
3,591
3,762
3,933
3,900
3,900
3,900
3,900
------------------- ------------------- ------------------- ------------------0
0
0
33
0

33

410
496
581
634
========== ========== ========== ==========

3,933
4,104
4,275
4,703
5,100
5,100
5,100
5,100
------------------- ------------------- ------------------- ------------------0
0
0
0
0

267
352
438
651
========== ========== ========== ==========

GOV_TAX_PLAN_2015_ATTACHMENTS
IRS TABLE
THE BELOW IRS TABLE OF 2012 FEDERAL INCOME TAX RETURNS FILED BY MAINE RESIDENTS WAS USED TO ESTIMATE THE FEDERAL INCOME TAX INCREASE FROM REDUCING MAINE INCOME TAXES
And Size of Adjusted Gross Income, Tax Year 2012
[Money amounts are in thousands of dollars]

Size of adjusted gross income


Item

All returns

Under
$1 [1]

$1
under
$10,000

$10,000
under
$25,000

$25,000
under
$50,000

$50,000
under
$75,000

$75,000
under
$100,000

$100,000
under
$200,000

$200,000
under
$500,000

$500,000
under
$1,000,000

$1,000,000
or
more

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

MAINE
Number of returns

631,380

9,430

100,980

146,880

158,760

91,460

54,940

11,550

1,770

800

Number of single returns

306,030

5,720

82,750

94,290

81,540

26,450

7,950

5,740

1,250

220

130

Number of joint returns

254,360

3,030

9,180

27,570

52,940

57,400

44,570

47,610

9,940

1,490

640

Number of head of household returns


Number with paid preparer's signature
Number of exemptions
Number of dependent exemptions
Adjusted gross income (AGI) [2]
Total income: [3] [4] Number
Amount
Salaries and wages in AGI: Number
Amount
Taxable interest: Number
Amount
Ordinary dividends: Number
Amount
Qualified dividends: [5] Number
Amount
State and local income tax refunds: Number
Amount
Business or profession net income (less loss): Number
Amount
Net capital gain (less loss) in AGI: Number
Amount
Taxable individual retirement arrangements distributions: Number
Amount
Taxable pensions and annuities in AGI: Number
Amount
Number of farm returns
Unemployment compensation: [6] Number
Amount
Taxable social security benefits in AGI: Number
Amount
Partnership/S-corp net income (less loss): Number
Amount
Total statutory adjustments: [7] Number
Amount
Educator expenses: Number
Amount
Self-employed (Keogh) retirement plans: Number
Amount
Self-employed health insurance deduction: Number
Amount
Individual retirement arrangement payments: Number
Amount
Student loan interest deduction: Number
Amount
Tuition and fees deduction: Number
Amount
Domestic production activities deduction: Number
Amount
Total itemized deductions: [8] Number
Amount
State and local income taxes: Number
Amount
State and local general sales taxes: Number
Amount
Real estate taxes: Number
Amount

60,900

22,120

20,430

6,460

54,820

380

7,910

280

40

304,790

6,590

38,150

62,330

73,740

49,300

30,490

32,790

9,030

1,610

760

1,152,530

13,680

94,720

225,410

287,700

204,030

139,200

1,920

148,740

1,350

32,090

4,890

2,070

310,000

1,840

19,930

57,760

76,330

55,210

39,830

46,230

10,620

1,630

640

-408,590

522,331

2,537,783

5,726,403

5,623,870

4,725,591

7,195,324

3,291,876

1,187,682

2,034,538

629,880

7,930

100,980

146,880

158,760

91,460

54,820

54,940

11,550

1,770

800

33,011,379

-400,323

541,997

2,590,277

5,823,070

5,710,685

4,792,028

7,315,928

3,370,575

1,211,891

2,055,250

524,240

2,550

77,970

115,700

136,760

80,690

49,150

49,340

10,000

1,480

620

22,779,316

54,068

402,221

1,842,757

4,436,064

4,261,785

3,587,643

5,242,016

1,995,201

550,315

407,246

216,570

3,610

18,090

32,130

46,940

39,350

28,800

35,430

9,740

1,680

790

325,984

14,276

9,609

28,046

42,154

39,861

34,767

59,590

40,315

17,783

39,584

126,250

2,620

10,240

17,010

24,700

21,830

16,910

23,330

7,470

1,450

710

835,579

10,958

15,208

39,335

69,170

77,377

75,625

173,603

149,820

81,255

143,228

114,820

2,380

9,070

15,070

22,090

19,770

15,460

21,760

7,120

1,420

690

651,084

7,717

9,150

24,947

46,137

53,696

55,283

133,401

123,798

69,746

127,208

107,800

350

1,350

5,420

23,070

26,860

21,000

25,330

3,720

380

340
8,413

109,802

677

835

3,183

16,198

21,854

18,841

28,083

9,218

2,501

108,390

4,060

14,680

21,760

24,160

17,080

10,820

11,900

3,230

510

220

1,331,291

-43,476

55,862

188,808

244,829

193,980

141,938

266,831

174,332

58,704

49,482

97,260

3,300

7,920

11,860

17,550

15,700

12,480

19,060

7,190

1,480

740

1,482,746

20,041

-1,446

9,622

31,935

48,493

57,419

188,173

254,704

187,824

685,981

68,000

820

5,030

12,830

16,040

12,290

8,590

9,570

2,270

380

190

967,161

9,084

18,725

80,000

137,397

145,054

145,590

256,429

109,589

24,044

41,250

125,600

1,070

8,730

25,580

31,860

23,780

15,620

15,730

2,740

340

160

2,519,295

9,545

38,177

271,745

546,732

547,167

420,526

535,307

124,703

17,975

7,417

4,690

410

440

790

1,040

790

520

520

140

30

10

49,840

200

4,520

16,980

14,860

7,210

3,560

2,270

230

** 20

264,317

1,225

15,551

93,273

80,381

39,723

18,975

13,641

1,436

** 111

**

85,520

10

200

9,930

29,630

20,120

11,880

10,780

2,380

390

190

162,969

257,798

202,470

216,214

119

54,684

9,433

**

736

15,397

36,940

1,700

1,420

3,040

5,840

5,720

4,720

8,490

4,290

1,130

580

1,469,123

-93,805

-2,696

5,574

32,368

51,381

62,388

246,496

375,252

218,995

573,170

178,980

2,390

16,650

32,450

44,410

31,840

20,940

23,750

5,110

960

490

574,569

8,267

19,666

52,494

96,667

86,815

66,437

120,604

78,699

24,209

20,712

17,860

4,809

390

20

10

40

160

940

4,000

4,380

3,740

4,180

4,450

11

31

202

928

1,091

987

1,099

94

4,120

10

50

170

410

550

520

1,260

910

180

70

5,518

19,609

24,542

6,524

67,589

883

3,241

4,525

130

206

20,580

620

1,420

2,860

4,150

3,160

2,130

3,650

1,920

430

230

126,392

2,881

5,007

12,289

20,377

18,256

13,446

28,116

18,725

4,716

2,577

16,940

70

290

1,730

4,580

4,270

2,800

2,790

320

60

20

74,088

277

828

5,512

17,114

18,666

13,094

14,982

2,896

535

183

62,060

350

2,600

11,130

19,140

12,920

8,570

7,350

61,395

392

2,273

10,083

18,807

12,567

9,470

7,803

6,960

340

1,500

1,050

990

950

460

1,670

16,750

1,220

4,573

2,552

2,154

1,896

953

3,402

2,420

30

50

100

240

340

280

650

420

160

160

25,665

245

111

155

489

944

799

2,622

4,779

3,944

11,577

2,411

188,670

3,980

12,180

36,090

39,780

34,790

47,960

11,350

1,750

790

4,180,384

60,073

180,227

515,143

661,034

663,958

1,176,962

525,169

166,157

231,661

171,920

1,270

6,740

31,340

37,820

33,920

47,170

11,150

1,730

780

1,144,462

1,784

7,755

61,146

120,690

156,358

373,935

215,597

80,239

126,958

14,070

2,090

4,490

4,160

1,710

750

660

170

10

10

1,606

795

17

34.11%
(A)

20

32,436,809

924,630

215,340

8,857

634

1,811

2,595

990

390

175,820

3,040

10,060

32,530

37,450

33,160

46,250

10,900

1,680

760

674,513

10,177

31,865

91,478

114,813

113,897

201,287

78,009

19,318

13,670

21

29.88%

1,073,777

93.82%
(A)

Total taxes paid: Number


Amount
Home mortgage interest paid: Number
Amount
Charitable contributions: Number
Amount
Taxable income: Number
Amount
Income tax before credits: Number
Amount
Alternative minimum tax: Number
Amount
Total tax credits: [9] Number
Amount
Foreign tax credit: Number
Amount
Child care credit: Number
Amount
Nonrefundable education credits: Number
Amount
Retirement savings contributions credit: Number
Amount
Child tax credit: Number
Amount
Residential energy tax credit: Number
Amount
Self-employment tax: Number
Amount
Total tax payments: [10] Number
Amount
Earned income credit: [11] Number
Amount
Excess earned income credit (refundable): [12] Number
Amount
Additional child credit: Number
Amount
Refundable education credit: [13] Number
Amount
Income tax: [14] Number
Amount
Total tax liability: [15] Number
Amount
Tax due at time of filing: [16] Number
Amount
Overpayments refunded: [17] Number
Amount However, the data are combined with data in an adjacent
taxpayers.
size class, as appropriate, and included in the appropriate totals.

188,050

3,840

11,940

35,960

39,730

34,770

47,940

11,340

1,750

790

1,904,369

13,321

44,513

164,520

249,640

285,444

601,333

302,344

101,779

141,474

149,930

2,140

7,420

27,760

32,620

29,550

40,240

8,660

1,150

410

1,135,599

14,031

45,525

168,167

221,668

221,147

334,863

104,988

18,245

6,966

141,920

2,080

7,300

22,640

28,640

27,120

41,230

10,500

1,660

760

424,979

1,984

10,466

35,152

52,118

56,759

114,219

71,333

28,638

54,310

489,080

12,840

106,960

154,560

91,070

54,700

54,860

11,530

1,770

800

21,574,560

21,092

714,618

3,088,581

3,637,729

3,300,721

5,372,249

2,643,065

1,001,571

1,794,933

484,070

10

12,040

104,920

153,150

90,650

54,470

54,740

11,520

1,770

800

3,729,510

72

2,079

75,438

377,209

496,169

467,882

914,248

642,784

280,362

473,267

13,410

10

2,200

9,060

1,500

340

101,102

72

24

14

39

108

331

5,199

60,068

22,515

12,731

189,800

20

680

10

29,090

10

58,190

39,740

26,650

28,320

5,390

1,130

600

224,362

35

38

9,796

46,924

54,224

42,178

39,632

13,330

5,133

13,072

33,030

400

1,760

5,440

5,990

5,140

8,860

3,960

970

530

26,320

16

86

449

763

833

3,665

7,976

2,558

9,975

26,420

**

** 1,960

6,130

6,210

5,350

5,760

890

100

20

13,861

**

** 719

3,209

3,315

3,014

3,108

437

48

11

38,660

160

7,850

9,920

7,850

6,420

6,460

43,183

16

4,363

9,714

10,035

8,896

10,158

37,670

40

11,000

20,590

6,050

6,907

1,745

4,132

1,028

90,000

**

** 10

7,540

29,680

24,040

16,530

12,180

10

111,311

**

** 6

2,671

28,040

36,804

27,280

16,506

15,220

**

** 10

740

3,630

3,880

2,960

3,350

580

60

20

6,309

**

** 16

133

946

1,250

938

1,649

951

111

315

12,400

18,340

20

70

190

84,620

1,440

18,430

12,630

7,860

9,380

3,240

610

280

196,973

2,071

8,452

27,714

38,110

30,073

21,947

39,074

21,182

5,166

3,185

596,170

4,160

88,120

136,370

154,750

90,190

54,230

54,400

11,410

1,760

790

4,563,418

11,280

73,389

349,815

633,030

617,801

550,222

995,082

627,986

265,022

439,791

105,710

1,200

32,160

43,630

28,700

30

205,791

1,042

32,282

120,688

51,778

87,950

720

27,300

37,260

22,650

20

178,117

677

28,260

107,773

41,406

60,200

340

8,530

28,000

20,340

2,690

250

60

71,288

439

5,063

34,824

27,242

3,312

333

75

34,810

470

3,730

7,190

6,930

5,740

4,710

6,030

32,592

448

3,166

5,997

6,158

5,545

4,818

6,460

443,230

10

11,780

88,430

132,540

87,700

54,110

54,590

11,510

1,770

790

441,945

425,708

874,616

629,455

275,229

460,195

3,505,153

37

2,041

65,643

330,285

477,900

1,630

24,750

100,400

139,300

88,790

54,280

54,690

11,510

1,770

790

3,731,007

2,737

10,965

94,794

372,914

477,111

452,021

922,252

653,649

280,758

463,806

105,700

990

23,280

20,030

12,330

17,800

5,480

890

380

418,832

1,137

3,649

15,449

35,673

42,026

34,748

88,009

85,616

37,960

74,564

491,460

3,350

81,820

8,900

125,290

15,630

132,170

68,930

40,670

34,220

4,420

440

150

1,137,818

8,956

65,700

268,974

291,324

177,121

127,651

143,719

36,637

8,495

9,243

Size of adjusted gross income


All returns

NOTE: AMOUNTS IN 1,000's

State and local income taxes: Number


Amount
TAX INCOME TAX DEDUCTION PER TAX FAMILY

FEDERAL TAX SAVINGS RATE


FEDERAL TAX BENEFIT
WEIGHTED AVERAGE % FEDERAL TAX SAVINGS

TOTAL MAINE INCOME ALL ME RESIDENTS - 2012


ITEMIZED DEDUCTIONS AS % OF TOTAL

$1
under
$10,000

Under
$1 [1]

$10,000
under
$25,000

$25,000
under
$50,000

$50,000
under
$75,000

$75,000
under
$100,000

$100,000
under
$200,000

$200,000
under
$500,000

$500,000
under
$1,000,000

$1,000,000
or
more

171,920

1,270

6,740

31,340

37,820

33,920

47,170

11,150

1,730

780

1,144,462

1,784

7,755

61,146

120,690

156,358

373,935

215,597

80,239

126,958

1,405

1,151

1,951

3,191

4,610

7,927

19,336

46,381

162,767

0.1
178.40

0.1
775.50

0.15
9,171.90

0.15
18,103.50

0.15
23,453.70

0.21
78,526.35

0.25
53,899.25

0.2
16,047.80

6,657

247,131

0.37 (1)
46,974.46

21.6% (A1)
==========
1,325,000
86.4%
(A2)

(1,350,000 / 1,144,462)

(1) - THE FEDERAL TOP INCOME TAX RATE HAS INCREASED FROM 35% TO 39.5% FOR YEARS AFTER 2013.
(A) - MAINE RESIDENTS WITH INCOME OVER $50,000 REPRESENT ONLY 34% OF THE TAX FAMILIES BUT THEY ALSO REPRESENTED 94% OF THE TAXPAYERS WHO DEDUCTED MAINE INCOME TAXES.
NOTE: MAINE REVENUE SERVICES ESTIMATED THAT 91% OF INCOME TAXES ARE PAID BY TAX FAMILIES WITH INCOME OVER $51,872 FOR THE YEAR 2014..

ATTACHMENT 1
GOV_TAX_PLAN_2015_ATTACHMENTS
ATTACHMENT 1
CALCULATION OF THE FEDERAL INCOME TAX INCREASE TO MAINERS AND OTHER ISSUES THAT IMPACT 2019 TAX REDUCTION

FEDERAL
ITEMIZERS
---------------------

TOTAL
-------------------GENERAL MAINE INCOME TAX CUT FOR RESIDENTS IN 2019
INCOME TAX CUT FROM PROPERTY TAX FAIRNESS CREDIT
INCOME TAX CUT RELATED TO SALES TAX FAIRNESS CREDIT
TOTAL ESTIMATED INCOME TAX CUT IN 2019
OVERSTATED TAX FAIRNESS CREDIT
ACTUAL INCOME TAX REDUCTION

NON
ITEMIZERS
---------------------

483,500,000 (A2)
417,744,000 86.4%
65,756,000 13.6%
55,100,000
5,510,000 10.0%
50,000,000 90.0%
66,200,000
0 0.0%
66,200,000 100.0%
------------------------------------------------------------604,800,000
423,254,000 70.0% 181,956,000 30.1%
(50,000,000)
--------------------554,800,000

WEIGHTED AVERAGE FEDERAL TAX BENEFIT MAINE INCOME TAXES

(5,000,000)
--------------------418,254,000
(A1)

FEDERAL INCOME TAX INCREASE TO MAINERS


ROUNDED

(45,000,000)
--------------------136,956,000

21.6%
--------------------90,316,210
===========
90,315,000

TOTAL OVERSTATED 2019 TAX CUT ESTIMATED BY THE GOVERNOR


GOVERNOR'S ESTIMATED 2019 NET INCOME TAX REDUCTION
LESS: OVERSTATED PROPERTY TAX FAIRNESS CREDIT
FEDERAL INCOME TAX INCREASE
NET SALES TAX INCREASE
NET HOMESTEAD EXEMPTION CHANGE
FEDERAL INCOME TAX REDUCTION RELATED TO HOMESTEAD
NET TAX REDUCTION EXCLUDING REVENUE SHARING IMPACT

604,800,000
(50,000,000)
(90,315,000)
(288,800,000)
(28,800,000)
3,024,000
-------------------149,909,000
==========

(1)

(1) - THE GOVERNOR CLAIMS THAT HIS BUDGET WILL CREATE A $300 MILLION TAX CUT TO MAINERS. AT MOST IT IS ONLY $150 MILLION.
ALSO THAT IGNORES THAT PROPERTY TAXES WILL GO UP DUE TO LOSS OF REVENUE SHARING AND THAT OTHER TAXES WILL NEED TO
BE RAISED TO COVER THE REVENUE SHORTFALL IN 2019 THAT HAS NOT BEEN ADDRESSED.

(A1) AND (A2) - THE 86.4% OF TAXES PAID BY ITEMIZERS AND THE 21.6% WEIGHTED AVERAGE FEDERAL TAX RATE
COMES FROM THE ATTACHED IRS DATA ON 2012 MAINE TAXPAYERS. SEE IRS TABLE TAB.
(A3) - THE VAST MAJORITY OF THE PROPERTY TAX FAIRNESS CREDIT WILL BENEFIT NON ITEMIZERS.
(A4) - IT IS VERY UNLIKELY ANY TAXPAYERS WHO RECEIVE THE SALES TAX CREDIT WILL ITEMIZE DEDUCTIONS, ASSUMED NONE.

(A3)
(A4)

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