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Mills: State can’t afford to waive taxes on pandemic aid

She contends the state cannot afford to fully mirror federal tax cuts on CARES ACT funding funneled into Maine, saying it would cost $100 million to do so.
Mills contends the state cannot afford to fully mirror federal tax cuts on CARES ACT funding...
Mills contends the state cannot afford to fully mirror federal tax cuts on CARES ACT funding funneled into Maine, saying it would cost $100 million to do so.(Gray tv)
Published: Jan. 25, 2021 at 6:54 PM EST
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AUGUSTA, Maine (AP) - Democratic Gov. Janet Mills contends the state cannot afford to fully mirror federal tax cuts on CARES ACT funding funneled into Maine, saying it would cost $100 million to do so.

Billions of dollars of federal pandemic relief flowed into Maine, and the federal government opted against taxing the forgivable loans under the Paycheck Protection Program and other grants to businesses. It also allowed businesses to deduct expenses.

Kirsten Figueroa, the state’s budget commissioner, said the state cannot afford to mirror those tax breaks because without congressional funding to help.

Legislative Republicans said the governor should find a way to avoid further harm to struggling businesses.

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