Governor Janet Mills has released her FY26- FY27 supplemental budget and now lawmakers have important decisions to make about how they will allocate state funds to meet Maine’s needs and priorities.
For years, the state has underfunded important priorities, leaving infrastructure crumbling and inadequate systems struggling to keep up with demands. But last session, lawmakers passed two bills that would allow the state to make major new investments by raising taxes on the wealthy and big corporations. And the Legislature was just one vote shy of passing a third — a millionaire tax, like the one passed by Massachusetts that has allowed them to make major investments in schools and transportation infrastructure.
The Legislature carried these bills over from last session to this year due to veto threats from the Governor, who has been resistant to raising taxes on people with wealth and big corporations, while proposing and signing other laws raising taxes on everyday Mainers.
At a time when costs for housing, heating, electricity, groceries, and other necessities have become increasingly unaffordable, and thousands of Mainers face losing their health care and food assistance due to federal cuts, it is past time to act.
Corporate profits are at an all-time high. Extreme wealth inequality continues to worsen at a staggering rate.
The answer is clear: stop asking for more from working Mainers and ask more of those who have the most. These three bills could pave the way and altogether would raise over $200 million:
- Tax increase on high earners. LD 229 would create two new top brackets on high earners while lowering the bottom bracket, cutting taxes for almost 70% of Mainers and raising $85 million per year.1
- Millionaire tax. LD 1089 would create an additional 2% tax on income over $1 million for single tax filers, and over $2 million for those married filing jointly, raising $70 million per year for prek-12 education.
- Tax increase on big businesses. LD 1879 would increase the top tax rate for corporations making over $3.5 million per year by just over 1%, the current proposal raises $50 million per year with $30 million to support the agriculture industry.
Maine lawmakers have a choice: continue allowing state infrastructure and services to crumble and the wellbeing of Mainers to suffer — or raise revenue and invest in Maine’s future.
Notes:
[1] After passing, LD 229 was referred back to committee for possible additional changes or revisions.