URGE YOUR LEGISLATOR TO REJECT THE SUPPLEMENTAL BUDGET!
Late last week, the Legislature’s Appropriations and Financial Affairs Committee advanced what can only be described as one of the most consequential supplemental budgets in years—a proposal that raises serious concerns for Maine’s business community and our state’s economic trajectory. If enacted, it would represent a major step backward in our state’s competitiveness.
This 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.
At its core, this proposal will have broad and immediate implications for Maine businesses—particularly small and family-owned companies that rely on pass-through income to reinvest, grow, and hire.
We ask you to contact your legislator and urge them to reject this supplemental budget.
The Budget Supplemental not only enacts a major tax increase, it also proposes to raid our state’s budget stabilization fund and fails to include pro-growth policies. Key provisions include:
CLICK HERE NOW TO CONTACT YOUR LEGISLATOR!
Recent IRS data shows Maine gained a net $252 million in adjusted gross income from new residents earning more than $200,000 in 2023—momentum that is critical to strengthening our economy and tax base. At the same time, high-tax states like California, New York, and Massachusetts have experienced significant outmigration, losing $11.9 billion, $9.9 billion, and $4 billion in adjusted gross income, respectively. Policies that increase the cost of living and doing business risk reversing that progress.
As business leaders, you understand that economic growth depends on predictability and competitiveness. Increasing marginal tax rates—particularly in a state already facing demographic and workforce challenges—signals to employers, investors, and prospective residents that Maine is becoming a more difficult place to do business.
We are risking the growth of the Maine economy. We will be paying the consequences of this for years if it is passed.
We ask you to take action today:
CLICK HERE NOW TO CONTACT YOUR LEGISLATOR!
Late last week, the Legislature’s Appropriations and Financial Affairs Committee advanced what can only be described as one of the most consequential supplemental budgets in years—a proposal that raises serious concerns for Maine’s business community and our state’s economic trajectory. If enacted, it would represent a major step backward in our state’s competitiveness.
This 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.
At its core, this proposal will have broad and immediate implications for Maine businesses—particularly small and family-owned companies that rely on pass-through income to reinvest, grow, and hire.
We ask you to contact your legislator and urge them to reject this supplemental budget.
The Budget Supplemental not only enacts a major tax increase, it also proposes to raid our state’s budget stabilization fund and fails to include pro-growth policies. Key provisions include:
- Imposes a Surtax on Income Over $1 million. This replicates a failed experiment in Massachusetts, which has significantly lost population since this was imposed by referendum. This would increase our highest marginal income tax from 7.15 percent to 9.15 percent – the highest level in New England. This takes effect for this current tax year. Ironically, Maine has benefited from some of the exodus of high-tax states as the Governor has stated in the past.
- Raids the Budget Stabilization Fund. The proposal to use $324 million from Maine’s Budget Stabilization Fund is fiscally imprudent and prioritizes short-term relief over long-term economic growth. A significant portion of these funds would be distributed as $300 “affordability” checks—an approach that provides only temporary benefit without addressing the underlying drivers of high costs.
- Eliminates the Business Equipment Tax Reimbursement for Some Businesses. The elimination of the BETR program for some businesses is contradictory to a promise made to businesses who made investments in equipment. Many states simply do not allow property taxes on equipment as this creates a disincentive to continue to modernize. This will cost individual businesses hundreds of thousands of dollars this year.
- Fails to Enact Tax Conformity. The bill fails to fully conform with federal tax law changes. Most notably, the bill does not allow full expensing of Research & Development expenditures in the year they are placed in service. Prior to 2022, Maine had been in alignment with the federal tax code on this provision since the inception of the Maine tax code in 1969.
CLICK HERE NOW TO CONTACT YOUR LEGISLATOR!
Recent IRS data shows Maine gained a net $252 million in adjusted gross income from new residents earning more than $200,000 in 2023—momentum that is critical to strengthening our economy and tax base. At the same time, high-tax states like California, New York, and Massachusetts have experienced significant outmigration, losing $11.9 billion, $9.9 billion, and $4 billion in adjusted gross income, respectively. Policies that increase the cost of living and doing business risk reversing that progress.
As business leaders, you understand that economic growth depends on predictability and competitiveness. Increasing marginal tax rates—particularly in a state already facing demographic and workforce challenges—signals to employers, investors, and prospective residents that Maine is becoming a more difficult place to do business.
We are risking the growth of the Maine economy. We will be paying the consequences of this for years if it is passed.
We ask you to take action today:
- Contact your legislators and urge them to oppose this supplemental budget proposal. Click here to message them directly.
- Share how this policy would impact your business, your employees, and your ability to invest in Maine.
- Encourage your peers and networks to engage as well.
CLICK HERE NOW TO CONTACT YOUR LEGISLATOR!
