AUGUSTA, Maine (April 10, 2026) – Absent a national policy, the Maine State Chamber of Commerce has consistently called for a balanced, uniform approach to data privacy—one that provides consumers with clear protections and input on how their data is used, while ensuring Maine employers remain competitive in an increasingly digital economy. Despite legislation brought forward that would have aligned Maine with seventeen other states’ data privacy laws, the Legislature instead advanced a far more restrictive bill--LD 1822: An Act to Enact the Maine Online Data Privacy Act—which would have made Maine an outlier by significantly limiting businesses’ ability to grow their customer base through cost-effective digital marketing, now a cornerstone of modern advertising.
 
In a rare and powerful show of unity, nearly 400 Maine businesses representing tourism, hospitality, retail, arts, and sports spoke out in opposition to LD 1822, raising concerns about the real-world impact the proposal would have on their operations and the broader economy. These businesses were joined by the Maine State Chamber of Commerce, HospitalityMaine, Maine Tourism Association, Retail Association of Maine, and regional chambers across the state.
 
The Maine State Chamber of Commerce thanks the bipartisan group of legislators who listened to the employers and employees in their districts, took the time to understand how Maine businesses reach new customers, and ultimately stood with the business community in opposing LD 1822. Their decision protects the ability of businesses to innovate, grow, and compete—not just here in Maine, but in the global economy.
 
The Maine State Chamber remains committed to working with legislators and partners to advance a balanced data privacy law in the future.

The letter below was sent to the Maine State Legislature last evening as the House took up the supplemental budget bill. 

AUGUSTA, Maine — The Maine State Chamber of Commerce today joined business and community leaders at the State House to voice strong opposition to the supplemental budget proposal advanced by the Legislature’s Appropriations and Financial Affairs Committee, warning it would undermine Maine’s economic competitiveness and long-term growth.

The proposal includes a $150 million income tax increase through a new 2% surtax on income over $1 million, which would raise Maine’s top marginal income tax rate to 9.15%—the highest in New England. Speakers emphasized that the proposal would have immediate and far-reaching impacts on Maine businesses, particularly small and family-owned companies that rely on pass-through income to reinvest, grow, and hire.
“This budget proposal represents a major step backwards for our state’s competitiveness,” said Patrick Woodcock, President and CEO of the Maine State Chamber of Commerce. “At a time when we should be focused on growing our economy, this proposal puts up barriers and sends the wrong signal to employers, investors, and people considering Maine as a place to live and work.”

Woodcock outlined several key concerns, including the proposed surtax, the use of $324 million from the state’s Budget Stabilization Fund, and policies that could discourage investment and economic growth. He noted that Maine’s economic trajectory is already uncertain, with recent data showing the state returning to average growth levels and at risk of falling further behind.

Brian Langley, former owner of Union River Lobster Pot, spoke to the real-world impact on small business owners, particularly those planning to transition or sell their businesses after decades of work.
“When a Maine business owner finally sells after 30 years of hard work, we shouldn’t punish that moment of success,” Langley said. “This new surcharge isn’t hitting Wall Street—it’s hitting the sale of local businesses that have kept people working for decades. Instead of supporting the next generation, we’re putting a tax speed bump at the point of takeoff.”

Langley warned that such policies could lead to fewer locally owned businesses and more sales to out-of-state buyers, reducing opportunities for Maine families and entrepreneurs.

Marty Grohman, former Maine legislator and former mayor of Biddeford, emphasized that the proposal could unintentionally impact small businesses structured as pass-through entities, including those owned by individuals or families.

“What you’re really doing… is taxing businesses that do a lot of volume and are maybe owned by just one or two people,” Grohman said. “We need to be careful not to undermine the economic growth that helps us address affordability challenges. The most sustainable way to support our communities is through growth and expanding opportunity across the state.”

Grohman noted that Maine families are already grappling with rising costs and that policies which discourage business growth risk making those challenges worse over time.

Quincy Hentzel, President and CEO of the Portland Regional Chamber of Commerce, highlighted the broader implications for Maine’s business climate and workforce competitiveness.

“Employers consistently tell me that talent is their number one issue,” Hentzel said. “We’re competing with other states that are working to lower barriers and create a more welcoming environment for growth. Proposals like this send a signal… that Maine may be moving in the opposite direction.”

Hentzel added that businesses evaluate the full policy landscape when making decisions about where to invest and grow, and that increasing costs or complexity can make Maine less competitive.

Woodcock concluded by noting that Maine already ranks 44th in the nation for business competitiveness and warned that the proposal could further erode the state’s position.

“This is a crossroads for our state’s economy,” Woodcock said. “We urge the Legislature to reject this budget proposal, avoid policies that discourage investment, and instead focus on a pro-growth agenda that strengthens Maine’s competitiveness and signals that our state is open for business.”

The Maine State Chamber emphasized that there is still time for policymakers to pursue a forward-looking approach that supports economic growth, workforce development, and long-term prosperity for Maine businesses and communities.

AUGUSTA, Maine — The Maine State Chamber of Commerce today expressed strong opposition to the supplemental budget proposal advanced by the Legislature’s Appropriations and Financial Affairs Committee that would catapult Maine’s marginal income tax to the highest level in New England.

According to the state’s Consensus Economic Forecasting Commission, Maine’s employment outlook has weakened, with projections revised from modest growth to a decline in 2025 and little to no job growth expected through the end of the decade.

“This tax increase represents a major step backwards for Maine’s competitiveness. Maine has very little margin for error to attract investment, grow jobs, and alter our state’s economic trajectory,” said Patrick Woodcock, President and CEO of the Maine State Chamber of Commerce. “This is not the time to impose additional taxes on our entrepreneurs, small businesses, and disincentivize attracting new businesses and residents to our state.”
Early this morning, the Committee advanced legislation that includes a 2% surtax on an individual’s income over $1 million, raising Maine’s top marginal income tax rate to 9.15%, as well as a proposal to deplete $324 million from the Budget Stabilization Fund to finance one-time payments. For many Maine small businesses, this proposal would directly impact the capital they rely on to reinvest in their operations and workforce.

“These changes send the wrong signal to employers, investors, and entrepreneurs, and the depletion of our Budget Stabilization Fund is fiscally irresponsible,” Woodcock said. “Many Maine businesses — particularly small and family-owned companies, would feel the direct impact of higher income taxes, reducing their ability to reinvest, grow, and hire.

“At a time when our economic outlook is uncertain, those resources should be focused on strengthening Maine’s long-term growth potential,” Woodcock said. “Investments in research and development, housing-enabling infrastructure, and workforce growth will deliver far greater returns for Maine people and businesses.”

The Maine State Chamber emphasized that there is still time for policymakers to align around a forward-looking, pro-growth strategy as the budget process continues.

“We remain committed to working with lawmakers on both sides of the aisle to advance policies that support Maine’s economy, strengthen our competitiveness, and create opportunity across the state,” Woodcock said.

Momentum continues to grow as Maine businesses push back on LD 1822. At a well-attended press conference in Portland, a broad coalition of employers came together—both to share their concerns and to visibly demonstrate the depth of opposition across the state’s business community. The event quickly drew television and print coverage, bringing further attention to the potential impacts of the proposal. Below, you’ll find the full press release and the signed letter from businesses and organizations urging policymakers to take a different path forward.

​For Immediate Release                                                                                        
Tuesday, March 31, 2026                               
                                                    
Maine Businesses Intensify Opposition to LD 1822 Ahead of Final Votes
Business leaders say “data minimization” provisions would undercut key marketing tools

PORTLAND, Maine — Businesses from around Maine gathered at the Cross Insurance Arena in Portland on Tuesday to speak out in opposition to LD 1822, An Act to Enact the Maine Online Data Privacy Act. The bill’s “data minimization” requirements would restrict the ability for small businesses to use targeted digital marketing in Maine.

“For many small businesses in Maine, every marketing dollar matters,” said Maine State Chamber of Commerce President & CEO, Patrick Woodcock. “Targeted digital advertising provides businesses the ability to compete by focusing on likely customers, not casting an overly broad and costly net. The data minimization provision in LD 1822 evaporates that data, leaving Maine businesses at a competitive disadvantage to find new customers. That’s a step in the wrong direction for businesses already operating on tight margins.”

L.D 1822, which has passed both the Maine House and Maine Senate in close preliminary votes, would create a data privacy bill that would restrict the ability to collect online data unless “reasonably necessary and proportionate to provide or maintain a specific product or service requested by the consumer.”  This section, which the vast majority of states do not include in their data privacy laws, would prevent consumers from consenting to share data with third parties, which is the foundation of how profiles of interested customers are developed for retailers, restaurants, and music venues.  It would make Maine an outlier in how we treat online data and prohibit actions rather than requiring consumer consent. 

“We support protecting consumer privacy, but this bill goes beyond that—it risks limiting Maine businesses’ ability to compete, grow, and participate in an increasingly digital economy,” said Laura Hnatow, Vice President of Marketing and E-commerce for Sea Bags.

Business leaders from across Maine—representing tourism, hospitality, retail, arts, and sports—spoke about the real-world impact the proposal would have on their operations and the broader economy.

“Maine businesses are already operating in a challenging environment, with workforce shortages and a heavy reliance on a short seasonal window. Adding additional burdens through legislation like this discourages investment, limits job creation, and sends the wrong message – that Maine is not a place where businesses can grow and thrive,” said Jill Moses, owner of Three Dollar Deweys and several Maine restaurants.

“LD 1822 would significantly restrict our ability to reach those out-of-state audiences. For an organization that depends on visitors, that creates a real challenge in maintaining attendance and sustaining operations,” said Curt Dale Clark, Artistic Director of Maine State Music Theater.

“The Maine Mariners are a small business. We employ 19 full-timers and about 50 part-timers during the season. Our goal financially every year is to break even, so every expense is scrutinized. Our finances are on a knife-edge every season, and this will not only affect expenses with the need to spend more to get in front of the same amount of interested customers, but it can also affect revenues by not getting in front of the right people and resulting in smaller crowds,” said Adam Goldberg, CEO of the Maine Mariners.

There is widespread opposition to the bill in the business community, including from the Maine State Chamber of Commerce; several local Chambers of Commerce including those in Bangor, Portland, Kennebec Valley, mid-Maine and Oxford Hills; dozens of business associations, and hundreds of Maine businesses.

“We support the objective of protecting consumer data, but it is equally important to ensure that policies are grounded in the realities facing Maine employers,” said Woodcock. “LD 1822, as written, goes too far and could hinder the ability of businesses to operate, grow, and create jobs. We remain focused on finding a path that achieves both strong protections and a competitive business environment.”  

​###
 
About the Maine State Chamber of Commerce:
Founded in 1889, the Maine State Chamber of Commerce is Maine’s largest business association, serving as The Voice of Maine Business on behalf of thousands of employers of all sizes and sectors across the state. The Maine State Chamber focuses on three pillars - Advocacy, Access, and Awareness - to advance a positive business climate and secure a strong state economy in which Maine businesses can compete and succeed. For more information, please visit www.mainechamber.org.