Maine: Democrats

AUGUSTA, Maine — Democratic leaders in the State House are gearing up for a major debate over tax reform next week on their proposal to collect fewer taxes from Maine residents and more from out-of-staters.

Lawmakers are considering a variety of tax-reduction measures this session dealing with everything from levies on new cars and trucks to the amount the state treasury skims from individuals’ paychecks.

At 1 p.m. Thursday, the Legislature’s Taxation Committee will hear public comments on a plan to replace Maine’s four-tier income tax structure, which has a top tax rate of 8.5 percent, with a flat tax of 6.5 percent. The bill’s authors predict that with the numerous tax credits built into the proposed system, most Mainers would pay substantially less than 6.