Report: Richest Mainers benefited from tax overhaul, poor will pay more in 2027

When Sen. Susan Collins cast her vote for the 2017 Tax Cuts and Jobs Act, she said the corporate tax cuts would “provide significant relief to lower- and middle-income taxpayers.” However, two years after the passage of that bill, a new analysis shows that while the wealthiest one percent of Mainers saw significant tax breaks, the state’s poorest will see their taxes increase in 2027.

Marking the two-year anniversary of the passage of the Republican tax plan, the progressive 16 Counties Coalition issued the report on Thursday to highlight the local impact of the overhaul.

“Senator Collins said this law would provide tax relief to lower- and middle-income families, but Mainers aren’t feeling it. Instead, it was big corporations and pharmaceutical companies who gained the most,” said 16 Counties executive director Willy Ritch.

“Collins said it would create more jobs and economic growth, but it hasn’t. She said the law would make the tax simpler, but it’s as complicated as ever. She said the corporate tax cuts would pay for themselves instead of adding to our nation’s debt, but our debt has continued to skyrocket,” Ritch continued. “Honestly, I don’t know how you look at this as anything other than a scam designed to benefit corporations and the wealthy.”

The first year after passage of the tax plan, which reduced tax rates for corporations and wealthy individuals, the richest one percent of Mainers, those earning more than $506,560, saw an average tax cut of $31,900.

According to the report, in 2027, when the individual tax cuts phase out and the tax law is fully implemented, “Maine’s poorest will actually see a tax increase from the law.” Twenty five percent of Maine’s population are expected to see their taxes go up that year.

In comparison, corporations are already showing significant tax savings. The report notes that in 2018, “at least 60 Fortune 500 companies, including Amazon, MGM Resorts, Chevron, and Eli Lilly paid no federal income tax due to the new tax law. In total, they avoided paying taxes on about $79 billion in collective profits.”

Collins, who announced her decision to seek re-election this week, has come under fire for accepting thousands of dollars in contributions from many of those same companies who benefited from her vote on the tax bill.

Photo: Protesters in Bangor call on Sen. Susan Collins to vote against the Republican’s 2017 Tax Cuts and Jobs Act. | Beacon