New state guidance is intended to prevent negative tax consequences for Maine commuters who have been working from home during the COVID-19 pandemic, as well as assuring tax credits still apply to those making student loan payments.
“Governor Mills should be commended for ensuring Mainers are not subject to double taxation of their income amidst the pandemic when many Mainers, who would otherwise be working at their place of employment in another state, are actually working from home in Maine,” Jacob Posik, director of communications at the Maine Policy Institute, told The Center Square by email.
“It's also prudent to ensure the Opportunity Maine tax credit is still available for Mainers who continue to make payments on their student loans despite them being subject to deferment or forbearance during the pandemic,” he said.
The Administration has said it will work to pass legislation to solidify such measures when lawmakers go back into session in January.
“Equally important when the legislature returns is keeping taxes low so that we don't prolong our recovery by inflicting more economic harm on hardworking Mainers,” he told The Center Square.
“The governor and the legislature cannot make up for the revenues lost during the pandemic by increasing taxes. Attempts to tax and spend our way out of the pandemic recession will be unsuccessful.”
The Maine Department of Administrative and Financial Services provided additional details about the tax changes in a news release.
“Maine people who have been able to work remotely, along with the businesses that have encouraged and supported teleworking efforts, are doing their part to protect us from the spread of this dangerous virus,” the governor said in the news release.
“It is my hope that my Administration’s actions will provide a measure of certainty and relief for now, and I look forward to working with the Legislature in January to ensure Mainers avoid unintended tax burdens caused by COVID-19.”
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