Republican members of the Maine Legislature’s Appropriations and Taxation Committees on Friday called for a November public hearing to consider adopting recent federal tax changes aimed at easing the burden on workers, seniors and families.
The federal provisions, included in the “Working Families Tax Cut Act” passed by Congress and now in effect for 2025, give states the option to align their tax codes with the new measures.
Provisions Republicans are highlighting include eliminating state taxes on tips and overtime pay, increasing the Maine standard deduction, adding a new $6,000 deduction for seniors, and creating a new deduction for car loan interest.
“Maine has the fourth highest tax burden in the country, and workers, seniors and families are finding it increasing hard to live here,” said committee Republicans in a statement. “Congressional Republicans and President Trump have provided Maine with an opportunity to make life a little easier for citizens struggling to pay bills
“The public should be given a chance to voice their opinions on how eliminating state taxes on overtime and tips, increasing the standard deduction and allowing car loan interest deductions would impact their daily lives,” the added.
The Mills’ administration pushed back at this call, however:
“It’s just not as easy as, we see that something’s happening at the federal level — should we apply it?” Department of Financial and Administrative Services Director Kristen Figueroa told legislators on Friday.
Representatives Ken Fredette (R-Newport) and Amy Arata (R-New Gloucester) asked why the governor hadn’t called for a special session to address the lack of conformity between state and federal tax provisions earlier and insisted the matter be addressed before the legislature returns to session in January.
“It’s never enough for Maine Democrats. Instead of taking this opportunity to provide much-needed relief to Maine citizens, our Governor has chosen to continue with her unsustainable tax-and-spend mentality,” Senate Minority Leader Trey Stewart (R-Aroostook) stressed. “Democrats’ angry obsession with opposing anything President Trump touches is going to continue to hurt Maine people.”
