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Home - Contacts - Collaborators
Assuring Public Resources for Women's Needs
As citizens and taxpayers, women want adequate and high-value goods and services from government. Because women's incomes, on average, are lower than men's, they rely more heavily on government services. Women's economic well-being all along the age spectrum is often heavily reliant on the Medicaid, welfare, Social Security, and public education systems. Women also recognize that significant public investment is needed in education, social welfare, and environmental protection to ensure a sustainable future for families, communities, and the natural world.
Women are also concerned that government revenue is raised equitably so as not to place an undue burden on those with low incomes. This is assured through a tax system that is progressive rather than regressive. A progressive tax system requires higher income households to pay a larger proportion of their income in taxes than lower income households do with the understanding that lower income households are less able to contribute without cutting into their basic needs.
The Issues
Ensuring equal opportunities for women of all ages and incomes requires a commitment to adequate public goods and services and a tax structure that raises needed revenues fairly.
- Adequate public revenues:Public services are needed in all kinds of economic times and often more so in economic downturns when women are most likely to lose their jobs, health insurance, or educational opportunities. Women and children's needs must be represented in state budget decisions.
- Tax relief: Overall, Maine has a modestly progressive tax system, which is more progressive than most states. Still, the lowest 20% of households pay a larger share of their income in state and local taxes than higher income households do. Women are more likely to benefit from tax policies that target relief to lower income households rather than middle and upper-income taxpayers.
Priority Recommendations
- Reduce the property tax burden by expanding the Maine Homeowners and Renters Property Tax Relief Program and increasing state revenue sharing to high mil rate municipalities.
- "Export" more of Maine's tax revenue generation by increasing the meals and lodging tax.
- Target tax relief to the lowest income households by expanding the state earned income tax credit and making it refundable.
- Build on Maine's progressivity by creating a new top bracket of 10% for incomes over $100,000.
- Modernize Maine's tax system and ensure adequate revenue over the long term by broadening the sales tax base to services.
- Ensure a sustainable future for Maine families by creating tax policy that encourages economic development while also promoting livable wages and environmental protection.
Facts You Should Know
- In 2001, Maine spent about $500 million in General Funds on the Medicaid program, about 18% of the state budget. Women and girls make up a majority of Maine's Medicaid caseload.
- In 2001, Maine spent approximately $38 million in state dollars on TANF, or welfare, program in addition to the $78 million in federal TANF block grant funds. In 2001, female-headed households made up over 90% of the TANF caseload.
- In 2001, about one-third of the Maine state budget was spent on K-12 education for a total of approximately $950 million. This is in addition to local property taxes which accounted for about $900 million in additional spending.
- In 2001, the state invested over $200 million in public higher education.
- In 2001, Maine spent over $50 million in the Business Equipment Tax Reimbursement (BETR) program provided to businesses operating in Maine-a figure that is substantially growing each year. The program has no requirements for the provision of livable wage jobs or environmental protection by the receiving companies.
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