Maine Citizens React to Tax Hike

Updated 1 year ago

So Congrees has avoided the fiscal cliff, for now.It means most Mainers won’t pay more in federal income taxes this year, but most of us will pay much, much more in social security taxes.Thousands of mainers are ringing in the new year, knowing they will now be paying out a little more.A rise in payroll taxes means the government will now collect close to $100 more from the average Maine family’s monthly paycheck.That’s more than a thousand dollars a year.”I think it is the uncertainty that goes through your mind, as you have three young kids 10, 9 and 6 and looking to spend on hockey, and skiing, we were just talking about that,” said Rene Smyth, a mother from Portland. “It just makes you question you don’t know going forward.”Some worry this could have a greater impact on the local economy, since many will have to tighten their belts even more.”A family making 50 thousand dollars a year doesn’t have a great deal of discretionary capital to spend, so that thousand dollars may represent a third of it, a quarter of it, 20% of it. So it is serious.” said John Everets, of Portland.That is a great deal of money.Others are not as concerned: however, they say this is what is best for economy in the long run so sacrifices have to be made.”We have got to do everything and everybody has got to kick in. So, I am not thrilled about paying two percent more, but I do realize everybody has got to contribute,” commented Bill Spears, also of Portland.News 8 Financial Analyst Kristin Guibord says the average person has no control over this tax hike, and the best advice is to now work it into a family budget. “So, we need to take a deep breath, and just figure out how to make it work within our budgets, and let it go as much as we can.”The federal payroll tax is returning to 6.2%.Last year’s rate of 4.2% cost the government 120 billion dollars a year in tax revenue.


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