Maine Business Leaders Urge Lawmakers to Reject Supplemental Budget Proposal at State House Press Conference

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.