Gov. Janet Mills (D) proposed a new one-dollar-per-pack tax increase on cigarettes Friday. The tax proposal comes as Mills attempts to stabilize the 2026-2027 budget in the face of an impending half-billion-dollar budget shortfall, plus a shorter-term $118 million Medicaid deficit.
“This was a difficult budget to put together. Our economy is strong, but our revenues are leveling-off, and while prior legislatures have made many important and worthwhile investments, we have to consider what we can sustain in this budget cycle,” said Mills, commenting on her biennial budget proposal.
In a memo released last week, the governor’s office claimed that the new proposal “rejects broad-based tax changes,” but it appears income tax increases are the only tax increase or fee increase Mills is totally ruling out.
The budget proposed by Mills contains the first cigarette excise tax increase in the state since 2005.
[RELATED: Maine Faces $949.2 Million Budget Shortfall for 2026-2027…]
Gov. Mills’ proposal would increase the tax per pack from two dollars to three, a massive 50 percent increase.
This tax hike proposal follows the implementation of Maine’s largest tax increase in decades: the new one-percent paid leave payroll tax that took effect on Jan. 1.
While taxes on tobacco — some times referred to as “sin taxes” — have have often been proposed by left-wing politicians as a means of reducing smoking and boosting public health, Mills has dropped that pretense altogether. Instead, her proposal is a naked attempt to harvest tax revenue to Maine’s smokers
The biennial budget would also raise the excise tax on non-cigarette nicotine products by the same percentage, increase taxes on popular vapes and nicotine pouches.
The governor hopes the revenue generated by the new tax will help fix the massive budget shortfall created by spending under her administration, especially spending within the state’s medical welfare program, MaineCare.
“Increasing Maine’s cigarette and other tobacco products taxes would generate approximately $80 million in revenue to the General Fund over the biennium,” said Mills’ office.
An $80 million revenue increase will do little to make up for the billion-dollar predicted shortfall — especially if price-sensitive smokers quit, smoke less, or purchase cigarettes in New Hampshire, thereby forgoing the tax altogether.
Mills tax proposal is at odds with modern progressive values, which typically focus on raising taxes on the wealthy.
The tax increase, as with other tobacco taxes, is set to disproportionately affect low-income Mainers, with nearly three-quarters of smokers nationwide coming from lower-income communities.
The new tax comes after Mills allowed a new law to go into effect in April, imposing a massive tax increase on non-tobacco-based nicotine pouches such as Zyn.
[RELATED: Zynflation: Nicotine Pouches to Soar in Maine Thanks to 42% Excise Tax Hike…]
The new budget proposal also promises to reduce the shortfall by making a variety of cuts to Department of Health and Human Services (DHHS) programs.
One cut removes Supplemental Nutrition Assistance Program (SNAP a.k.a. Food Stamp) eligibility from non-citizens with work authorization who are nevertheless unemployed, possibly saving the state $7.8 million over a two-year period.
That’s the closest Mainers have come to getting information from the Mills Administration about the extent to which non-citizens are consuming welfare benefits.
The state will, nevertheless, continue using taxpayer funds to grant food stamps to other non-citizens.
Mills bragged that her new budget proposal does not increase the state income tax, but she declines to mention that she oversaw a massive one percent payroll tax increase as a result of the Democrat-led push for a paid family leave program.
Much as she promised not to change Maine’s pre-2022 abortion laws, Mills promised during her campaign that she would not increase taxes if she were re-elected.
<span class="dsq-postid" data-dsqidentifier="34000 https://www.themainewire.com/?p=34000">19 Comments
Squeeze them for every drop you can get Janet and then squeeze them some more .
They can’t afford to smoke um now, so add another buck a pack .
Add another kid who will need breakfast at school cause Mom had to buy her smokes .
Janet Mills you are such a turd . Such an absolute turd .
Smooth move exlax, this’ll be the one that gets her and her evil henchpersons kicked off the island. Meanwhile no tax increases on marijuana, which seems odd. Anyway, come to the free state of NH, we have all the tobacco you want. Since your genius running maine increased the cigar tax 43% and banned on line smoking paraphernalia our smoke shop right across the border has seen revenue triple. Keep em coming you beautiful retard.
The economy is strong?
Does she say that because the hospitals aren’t getting paid or because the state has over 1/2 billion 4 shortfall or because every week more businesses are either closing or leaving the state or because there are so many illegals?
I mean does she really think we’re that stupid?
Our electric bill doubled a bit over a year ago from about $75 mo to $150 mo and now because of her subsidies and a new delivery fee grabbed out of thin air our bill in a small house w/ 2 adults jumped to over $216.
Is that a sign of a strong economy or stupidity on the part of our politicians?
lol…typical liberal politicians. They cannot even consider cutting the budget to fix the deficit only increases to taxes of all kinds to pass the burden to the citizens. The bigger the government the smaller the citizens
Tax the weed Janet. You know, the illegally produced poisoned weed your homicidal Chinese military operations are distributing all over the country. Tax those dirt bags. They have plenty of the dirty filthy money you desire.
Hey Janet !
Why just pick on the poor old nicotine addicted cigarette smokers ?
What about the pot smokers ?
What about the alcohol drinkers ?
How about those donut eaters ? Those Starbucks Coffee drinkers ?
How about a tax on dirty girly magazines ….. violent video games …snow machines ?
WHO CAN WE TAX to cover UP YOUR over spending on TOO MANY social service give aways ?
It’s time to close some doors and send some people home . We can fund a few less of your NGOs .
It’s called FISCAL RESPONSIBILITY ….and You democrats obviously just don’t get it !
Anybody miss Governor LePage yet ?
Juan Marchan is the judge who over saw the conviction trial of the felon
Donald Trump. Judge Marchan was born in Columba, South America.
And his Dougher works for the Democratic Party. The trial is said by some to have been carried out in the style of just of his former country, Columba.
While he came to America, he could not leave his old style of justice at home.
How can we get rid off this old bag of fleas?
Purely anecdotal, but here in Bangor I smell pot being smoked a lot more than tobacco. I quit 30 years ago and can smell a cigarette a long way off.There’s a stigma attached to smoking cigarettes that doesn’t seem to include pot.
Raising taxes on the poor, to help bail the democrats out of the mess they made.
F U Czarina Mills.
Stop referring to the tax increase passed last year as a 1% payroll tax, makes it sound minimal. Since Maine’s base income tax rate is 5%, adding 1% to it is a 20% tax increase. So please call it the 20% paycheck tax increase from now on.
Best way to get people to pay attention. Go ahead and raise the TAX. see what happens…
Governor to expand GEO by making it a cabinet department. The GEO is made up of offshore wind zealots and EV pushers. Should be abolished.
What happened to that petition to impeach her?
Now would be a great time to follow through.
She and her administration will be the death of Maine as we know it.
Just as Newscum is doing to California.
They both sold out to the CCP.
I have read that Governess Mill’s Brother does legal work for the illegal Chinese run pot growers that are now all over the State. Does that explain why this tax increase is just on tobacco and does not extend to marajuana?
Mills and the progressives need to help Maine citizens first, how in the world are Maine taxpayers footing the bill for so called new arrivals! Paying rent, heat, telephone and uber rides, the do-gooders are sticking it to me and mine, c’mon man!!
I wanted 5 stars for the rating. I mistyped.
INVEST IN DEPORTATION!!