22 May 2017 Maine bill would create a payroll tax to fund universal family care Two bills have been introduced for consideration by the Maine legislature that would establish a universal family care system funded by payroll taxes levied on employees and self-employed individuals earning in excess of the Social Security wage base (currently $127,200). One proposal extends eligibility only to parents with children ages 0 to three (L.D. 1618) while the other would also provide home care and community support benefits to senior citizens and those with disabilities. (L.D. 1612). (L.D. 1612; L.D. 1618.) Both proposals would create a payroll tax of 12.4% on Social Security covered wages or self-employment income in excess of the annual cap set by the Social Security Administration for the year. Employers would be allowed to withhold 6.2% of the payroll tax from employees' covered wages and self-employed persons would pay the full 12.4% on covered earnings. A tax would also be assessed against unearned income similar to the Net Investment Tax established under the Affordable Care Act. This flurry of activity by some Maine lawmakers to create a universal family care system comes as a result of a campaign launched earlier this year by the Maine People's Alliance. Given that the Maine legislature is currently set to adjourn on June 21, it is unlikely the bill will pass this year; however, with a goal of full implementation by 2021, there appears to be commitment to continue shepherding the proposal through subsequent legislative sessions.
Document ID: 2017-0839 | |||||||||||
