Want another reason to be grateful you don’t live in Connecticut?
It has the distinction of being dead last in the Tax Foundation’s annual ranking of Tax Freedom Day – the day on which residents have collectively worked long enough to pay all tax obligations at the federal, state and local levels. Connecticut residents don’t hit that milestone until May 13, nearly a full month later than we recognize it here in Maine. Today, April 14, marks the day when our tax obligation is behind us and we’re keeping what we earn from this point forward.
Our Tax Freedom Day puts us at No. 11 in the country, 10 spots behind the first state to hits its tax milestone, Louisiana, which hit its Tax Freedom Day on April 2. Nationally, the average is April 24.
Most folks know of the Tax Foundation through its annual business climate ranking. This year, Maine placed 33rd based on an analysis of its corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property.
We got ranked low in corporate tax rates (45), unemployment insurance tax (42) and property taxes (40), but ranked better in individual income taxes (22) and sales taxes (9).
The right-leaning foundation likes to present a host of other tax-related data.
Some other choice bits:
• In 2014, Maine’s standard deduction is $5,200 for an individual and $10,450 for a couple and $3,900 per individual exemption. Ten years ago, it was $4,750 and $7,950 and $2,850, respectively.
• The foundation estimates 2012 property tax collections per capita in Maine at $1,789, the 11th highest in the country.
• This year, our gas tax of 30.01 cents puts us at No. 18 in the country.
• Our per-pack cigarette tax rate in 2015 of $2 is the 11th highest in the country.
Next year it’s anyone’s guess as to when our 2016 Tax Freedom Day will fall. Everything tax-related could be turned on its head depending on what happens with Gov. Paul LePage’s budget and efforts to repeal income taxes.
Stay tuned.
Carol Coultas, business editor, can be contacted at791-6460 or at:
ccoultas@pressherald.com
Twitter @carolacoultas
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