Proposed LePage budget includes income tax hike


The Portland Press Herald reported 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.

Michael Allen, LePage’s associate commissioner of tax policy, said if the plan is approved , average Mainers who pay income taxes will pay $49 more over the next two years.