To: Committee on Taxation
From: Marianne Hill, Ph.D., Sierra Club Maine
Date: March 22, 2023
Re: Testimony for LD 843: An Act to Improve Income Tax Progressivity by Establishing a New Top Individual Income Tax Rate
Senate Chair Nicole Grohoski, Representative Chair Joe Perry, and members of the Taxation Committee, I am testifying on behalf of Sierra Club Maine, representing over 22,000 supporters and members statewide. Founded in 1892, Sierra Club is one of our nation’s oldest and largest environmental organizations. We work diligently to amplify the power of our 3.8 million members nation-wide as we work towards combating climate change and promoting a just and sustainable economy. To that end, we,
Sierra Club Maine, support the call for greater tax fairness in Maine — a need recognized by Mainers for Tax Fairness. We urge you to support LD 843 and report “ought to pass”.
LD 843 would add an additional income tax bracket at higher income levels for those paying income taxes to Maine. This would provide much needed additional revenues and do so in a way that increases tax fairness in our state.
As federal pandemic funds run out, Maine will be returning to its longer term revenue trajectory. This means the state will face additional shortfalls in funding for the transition from fossil fuels to clean energy sources, including for manufacturing, buildings and vehicles. Other urgent unmet needs exist in: mental health; housing; education; protection of the environment; and more — think of dealing with the opioid crisis and the effects of climate change.
Increased reliance on the progressive income tax is critical to equity in taxation as the state meets future challenges. More tax brackets at higher income levels are necessary if revenues are to keep pace with Maine’s needs.
We urge you to support LD 843 and report “ought to pass”. Thank you for your time and consideration.
Sincerely,
Marianne Hill, Ph.D.
Sierra Club Maine
LD 843 This bill establishes an additional income tax bracket with a tax rate of 11.15% for taxable income exceeding $125,000 for single individuals and married persons filing separately, $150,000 for heads of households and $250,000 for married persons filing jointly and surviving spouses