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What is the Income Growth Factor and how is it calculated?

April 26, 2017calculated Factor growth income

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What is the Income Growth Factor and how is it calculated?

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The Income Growth Factor reflects growth in Maine’s tax base. The State Planning Office is responsible for calculating it. The current Income Growth Factor is 2.28%. That equals the statewide average personal income growth from 1997 to 2007, adjusted for inflation. The State Planning Office will release a new Income Growth Factor in September 2009, when the U.S. Bureau of Economic Analysis releases its revised estimates for 2008 income growth. Until that time, SPO will consider 2007 the most recent year for which data is available.