The Wall Street Journal reports that tax reform is coming from an unexpected place: Maine. A new law rids the state of its progressive tax system, which carried a top rate of 8.5 percent, to be replaced with a 6.5 percent rate applying to just about everyone. Those making above $250,000 will still have to pay slightly more—6.85 percent.
As a result, Maine, previously ranked seventh on the list of highest taxed states, will drop to 20th. Democratic Governor John Baldacci said of the new tax legislation: