An Act To Restore Some Progressivity and Fairness to the State Income Tax
Maine Legislature, Session 127, LD 1269
Committee: Taxation
Sponsors: STUCKEY, HASKELL, GATTINE, GOODE, HAMANN, MOONEN, TIPPING-SPITZ
Amends: 36 MRSA §5111

Legislative Document 
No. 1269 
H.P. 869 
House of Representatives, April 7, 2015 
An Act To Restore Some Progressivity and Fairness to the State 
Income Tax 
Reference to the Committee on Taxation suggested and ordered printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative STUCKEY of Portland. 
Cosponsored by Senator HASKELL of Cumberland and 
Representatives: GATTINE of Westbrook, GOODE of Bangor, HAMANN of South Portland, 
MOONEN of Portland, TIPPING-SPITZ of Orono. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  36 MRSA §5111, sub-§1-D, as enacted by PL 2013, c. 368, Pt. Q, §4, is 
amended to read: 
1-D.  Single individuals and married persons filing separate returns; tax years 
beginning 2014 and 2015.  For tax years beginning on or after January 1, 2014 but not 
later than December 31, 2015, for single individuals and married persons filing separate 
returns: 
Sec. 2.  36 MRSA §5111, sub-§1-E is enacted to read: 
1-E.  Single individuals and married persons filing separate returns; tax years 
beginning 2016.  For tax years beginning on or after January 1, 2016, for single 
individuals and married persons filing separate returns: 
For the purposes of this subsection the top threshold amount and the top incremental 
amount are set pursuant to subsection 6. 
Sec. 3.  36 MRSA §5111, sub-§2-D, as enacted by PL 2013, c. 368, Pt. Q, §6, is 
amended to read: 
2-D.  Heads of households; tax years beginning 2014 and 2015.  For tax years 
beginning on or after January 1, 2014 but not later than December 31, 2015, for 
unmarried individuals or legally separated individuals who qualify as heads of 
households: 
Sec. 4.  36 MRSA §5111, sub-§2-E is enacted to read: 
2-E.  Heads of households; tax years beginning 2016.  For tax years beginning on 
or after January 1, 2016, for unmarried individuals or legally separated individuals who 
qualify as heads of households: 
If Maine Taxable income is: 
The tax is: 
At least $5,200 but less than $20,900 
6.5% of the excess over $5,200 
$20,900 or more 
$1,021 plus 7.95% of the excess over 
$20,900 
If Maine Taxable income is: 
The tax is: 
At least $5,200 but less than $20,900 
6.5% of the excess over $5,200 
$20,900 but less than the top threshold 
amount 
$1,021 plus 7.95% of the excess over 
$20,900 
The top threshold amount or more 
The top incremental amount plus 10% of 
the excess over the top threshold amount 
If Maine Taxable income is: 
The tax is: 
At least $7,850 but less than $31,350 
6.5% of the excess over $7,850 
$31,350 or more 
$1,528 plus 7.95% of the excess over 
$31,350 
For the purposes of this subsection the top threshold amount and the top incremental 
amount are set pursuant to subsection 6. 
Sec. 5.  36 MRSA §5111, sub-§3-D, as enacted by PL 2013, c. 368, Pt. Q, §8, is 
amended to read: 
3-D.  Individuals filing married joint return or surviving spouses; tax years 
beginning 2014 and 2015.  For tax years beginning on or after January 1, 2014 but not 
later than December 31, 2015, for individuals filing married joint returns or surviving 
spouses permitted to file a joint return: 
Sec. 6.  36 MRSA §5111, sub-§3-E is enacted to read: 
3-E.  Individuals filing married joint return or surviving spouses; tax years 
beginning 2016.  For tax years beginning on or after January 1, 2016, for individuals 
filing married joint returns or surviving spouses permitted to file a joint return: 
For the purposes of this subsection the top threshold amount and the top incremental 
amount are set pursuant to subsection 6. 
Sec. 7.  36 MRSA §5111, sub-§6 is enacted to read: 
6.  Top bracket calculations.  Beginning October 15, 2015 and every 3 years 
thereafter, the State Tax Assessor shall calculate the top threshold amount and the top 
incremental amount for tax years beginning in the succeeding 3 calendar years for each 
bracket structure under subsections 1-E, 2-E and 3-E as provided in this subsection. 
If Maine Taxable income is: 
The tax is: 
At least $7,850 but less than $31,350 
6.5% of the excess over $7,800 
$31,350 but less than the top threshold 
amount 
$1,528 plus 7.95% of the excess over 
$31,350 
The top threshold amount or more 
The top incremental amount plus 10% of 
the excess over the top threshold amount 
If Maine Taxable income is: 
The tax is: 
At least $10,450 but less than $41,850 
6.5% of the excess over $10,450 
$41,850 or more 
$2,041 plus 7.95% of the excess over 
$41,850 
If Maine Taxable income is: 
The tax is: 
At least $10,450 but less than $41,850 
6.5% of the excess over $10,450 
$41,850 but less than the top threshold 
amount 
$2,041 plus 7.95% of the excess over 
$41,850 
The top threshold amount or more 
The top incremental amount plus 10% of 
the excess over the top threshold amount 
A.  To determine the top threshold amount for the bracket structure under subsection 
3-E for the first calculation year, the State Tax Assessor shall determine the taxable 
income threshold that separates the top 2% of individuals filing married joint returns 
or surviving spouses permitted to file joint returns in the previous calendar year.  The 
top threshold amount under subsection 1-E is 50% of the amount determined for 
subsection 3-E.  The top threshold amount for subsection 2-E is 75% of the amount 
determined for subsection 3-E. 
B.  The top incremental amount is the amount of tax that would be paid on the top 
threshold amount. 
C.  The top threshold amount for the first calculation year must be indexed for the 
2nd and 3rd calculation years in the same manner as other bracket amounts under 
section 5403. 
SUMMARY 
This bill adds a new marginal income tax rate of 10% on income tax filers with 
taxable income in the top 2% of all taxpayers beginning with 2016 tax years.  The State 
Tax Assessor is directed to determine the top taxable income threshold amount 
establishing the top 2% of taxpayers every 3 years.  Bracket amounts are indexed for 
inflation in the years in which a new calculation is not made.