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AUGUSTA, Maine

Proposed Maine budget includes income tax hike

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Governor Paul LePage’s proposed state budget includes a change that would increase the tax bill of the average Mainer by $39 over the next two years. The Portland Press Herald reported that the increase would result from a two-year suspension of the state’s indexing of the individual tax rate. Indexing takes inflation into account in calculating taxes. The proposal in the governor’s two-year, $6.3 billion budget for the two fiscal years beginning July 1 would bring a projected increase of more than $8.6 million in state income tax collections during that span, and an estimated $1.5 million in subsequent years.

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