Included in the supplemental budget advanced by the Democratic majority in Augusta was a “millionaire tax” that would charge residents an additional 2 percent on all income earned over $1 million.
Maine’s current highest tax bracket caps out at 7.15 percent, the most wealthy Mainers may soon be subject to a total of 9.15 percent income tax on a portion of their earnings.
The threshold at which this surcharge applies would be $1.5 million for heads of household and those filing jointly.
According to WGME, this new tax can be expected to impact roughly 2,400 households.
A similar idea had previously been floated by lawmakers this past summer under LD 1089, sponsored by Rep. Cheryl A. Golek (D-Harpswell). That proposal would have seen the imposition of a 4 percent added tax, the revenue from which would have been set aside to fund public pre-kindergarten through grade 12 education.
[RELATED: Extra 4% Tax on Income Over $1 Million on Track for Adoption After Committee Dems Recommend Hike]
Republicans at the State House have accused their Democratic counterparts of moving “under the cloak of darkness” to push this and other amendments through as part of the supplemental budget.
“This is the same sort of craziness that you’re seeing in places like Washington that are literally causing people to flee those states in droves,” Senate Minority Leader Trey Stewart said earlier this month.
[RELATED: Maine Democrats Push Late-Night ‘Millionaire’s Tax’ in Budget Move, Drawing Sharp GOP Backlash]
Business interests have also expressed opposition to the new tax.
“When the outlook of our population growth is stagnant and we should be attracting people to Maine, it puts a disincentive to people to call Maine home,” said Patrick Woodcock, president and CEO of the Maine State Chamber of Commerce, during a press conference on earlier this week.
On the floor of the House, Democratic lawmakers defended the move.
“Today, I have heard people express concern about attacks on millionaires,” Rep. Michael Brennan (D-Portland). “I’ve heard almost no concern for the 30 to 40,000 people that may lose their health insurance in the state of Maine. Fortunately, this budget is crafted in a way and a responsible way to respond to those unfunded mandates that came from the federal government to the state of Maine.”
[RELATED: Supplemental Budget Includes $5M for “Reproductive Health Care” and “Family Planning” Providers]
Also included in the proposed supplemental budget is a $5 million allocation for “reproductive health care” and “family planning” providers.
Gov. Janet Mills (D) announced her intention to support such a measure in January, explaining that she wanted to “offset the impacts of Federal funding cuts implemented by the Trump Administration and Congressional Republicans.”
In the biennial budget approved by lawmakers last year, $6 million in state funds were allocated for reproductive health care providers.
Most small private businesses that use the corporate form file as “ Subchapter-S” Corporations which means their corporation’s income is included on their form 1040 and taxed as ordinary income. As usual, the Dems are attacking small business owners as to the Dems, all businesses are enemies of the almighty state!
The producers who pay taxes want to pay less and the parasites who contribute little want them to pay more. I think I’ve heard that one before.
The stupid leftists who vote for this will be wondering why their taxes increase once the millionaires leave.
I am not sure who is dumber the Marxist-DemocRATs or the Maine citizens who vote these evil people into office. The people with money will up and leave so the idiots who think this is great are about to find out the cost to their wallets. Maryland tried this and it cost them money,same with Washington and the Starbucks CEO bailed from Washington as fast as he could.
The more I watch this I truly think Maine citizens love this way of life. What a bunch of morons.
Mills is the WORST!
Never, ever any talk of cutting, eventually just like some other blue states{NY} there will be an exit tax. A virtual wall, just like the Berlin Wall
May work for us. Get some of those in the southern part of the state to go elsewhere like back to mass.
When this 2% new tax on the “rich” at $1,000,000 dollars a year does not bring in very much, because many of those citizens move away, hold on to your wallets. The new definition of “rich” will become a Family with an income of $50,000 dollars a year. If that still does not float the demorat boat, be prepared to be called “rich” at $25,000 year. Socialism never changes….until it becomes full blown Communism.
Unfunded mandates? Again, Mills and the foolish democrats jumped at a temporary funding from the feds a few years back. They also look at “Covid funds” as permanent.
Once you throw temporary money at people the democrats think they need it permanent.
Good deal ! Mainer’s taxes will be going through the roof, and they deserve it. People in this state are extremely ignorant, and hate anyone “from away” as they put it. What they don’t bother to see is that the lion’s share of those millionaires are from Mass, and they pay taxes. Mainer’s will get their way now and those folks will just leave, with their tax dollars. Now Mainers can support all the Somalis themselves. I guess they don’t realize that Somali’s are also “from away”. Also funny that the highest earners in the state are from China, and don’t pay ANY taxes on their marijuana grows….and are also “from away”. Lol…good luck Maine. You’re gonna need it.
Well those people from away are the ones who voted for this. They ruined Mass and are now ruining Maine. And then they will move and ruin another state.
It is not Maine voters but Democrat voters, most of whom depend on tax dollars for their livelihood. You look at the Non Profits, education, public sector jobs almost all are democrats.
Democrats passing bills that will drive out their financial base, Excellent! The rich carpetbaggers will go elsewhere and the power will shift back to some sanity. Though there is a portion of their base that is locked on stupid. This could be the opportunity Maine needs to get back on track.