Gov. Paul LePage is scheduled to appear in Belfast Tuesday, April 28, to talk about his comprehensive tax reform proposal.

The plan includes a sweeping set of changes that would cut income taxes, eliminate the estate tax, phase out municipal revenue sharing and replace it with a provision that allows towns to tax large nonprofits, broaden the sales tax base and make other changes to the tax code.

LePage is touting the plan as a $300 million tax break. The savings, he argues, will allow Mainers to keep more of their money and potentially spur new investment in a state that often comes out near the bottom of lists of states with business-friendly tax codes.

Critics say the breaks in the new tax plan, including a new upper income bracket, would disproportionately favor wealthy residents. Smaller municipalities that don't have large nonprofits to tax might also fare poorly under the revenue sharing trade-off. In those cases, lost revenue would need to made up by raising property taxes or cutting services.

Either way the plan would bring significant changes. LePage recently went one step further recently, announcing plans to introduce a constitutional amendment to eliminate the state income tax. But first things first.

Elements of the governor's proposed tax plan:

Income tax

The top income tax rate for individuals would drop from 7.95 percent to 6.95 percent in 2016, the first year of the plan. Maine's top income bracket for individuals starts at $50,000.

In 2019, a new top bracket would be added at $175,000 with a reduced tax rate of 5.75 percent.

Municipal revenue sharing – The program, through which the state returns a percentage of sales and other taxes would be flat-funded $62.5 billion in fiscal year 2016 and eliminated in 2017.

Taxing private nonprofits – Municipalities would be given the option to tax most private nonprofits for 50 percent of the value of their property with an exemption on the first $500,000 in value. This provision is intended to offset the cuts to municipal revenue sharing.

Telecommunications excise – Towns would be responsible for collecting this tax, valued at $9 million statewide, and would get to keep the proceeds.

Homestead exemption – The current $10,000 exemption would be eliminated for all homeowners younger than age 65 and doubled to $20,000 for those 65 and older.

Property tax credit – The plan would raise the maximum "Property Tax Fairness" credit (formerly the "Circuitbreaker" program) from $600 to $1,000 for filers younger than 65, and from $900 to $1,500 for those older than 65.

Estate tax – The 7.2-percent tax on the assets of a deceased person with a net worth of more than $2 million would be repealed.

Sales tax – General sales tax would go up, from 5.5 percent to 6.5 percent

Meals tax would go down, from 8 percent to 6.5 percent

Short term auto rental tax would go down, from 10 percent to 8 percent

Additionally, the sales tax base would be expanded to the retail transactions in these categories: amusement and recreation services; installation, repair and maintenance services (excluding automobile repair; personal services, domestic and household services; personal property services; and professional services).

Sales tax credit – A new provision would add a refundable $250-$500 credit for lower income taxpayers designed to offset the increase in sales tax.

The Town Hall meeting will be held from 6-7 p.m., April 28 at the University of Maine Hutchinson Center in Belfast.