Appropriations committee passes landmark tax fairness legislation
Late Tuesday, the Legislature’s Committee on Appropriations and Financial Affairs approved a proposal to add a millionaire tax to the FY26-FY27 supplemental budget. The measure is based on LD1089, introduced by Rep. Cheryl Golek, which passed the Senate last session.
The proposal establishes a 2% surcharge on income over $1 million for single filers and over $1.5 million for married couples and other filers. Legislative analysts estimate the tax will generate $96 million in FY27 and $150 million in the next biennium. The surcharge is expected to impact about 2,600 filers — just 0.4% of Maine taxpayers.
The move positions the state to meet existing obligations, invest in new priorities, and maintain balanced budgets amid uncertainty and potential reductions in federal funding.
Recent polling shows broad support among Mainers for increasing taxes on high earners. Other states have taken similar steps: Washington recently passed a millionaire tax, and Massachusetts adopted a 4% millionaire tax in 2022.
Following an expected vote on the full budget on Wednesday, the bill will move to the House and Senate floors before heading to the governor’s desk.
“For too long, Maine’s tax code has asked the most of those with the least. Now, we’re on track to change that. This surcharge will generate hundreds of millions of dollars for workers, families, and students,” said MECEP State and Local Tax Policy Analyst Maura Pillsbury. “Mainers have been clear: they want a tax system that’s fair, and they want that money invested in their kids and their communities. The appropriations committee delivered on that promise. Now we call on every member of the House and Senate to do the same.”
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