Maine Democratic Governor Janet Mills has reversed her previous opposition to a new tax on millionaires, announcing her support for the measure shortly after Democrats on the legislature’s budget committee included it in a proposed two-year budget.
What The Tax Would Do
The proposed 2% surcharge would apply to taxable income above $1 million for single filers and above $1.5 million for heads of households and joint filers. According to the Maine Legislature’s nonpartisan budget office, the tax would affect approximately 2,600 filers and generate an estimated $150 million over two years.
Democrats on the budget panel also voted to increase the state’s property tax fairness credit, though a final draft of the budget bill has not yet been released, leaving open whether a specific portion of millionaires tax revenue will be formally directed toward property tax relief.
Mills’ Reversal
Mills had opposed the tax when it was first proposed last year as a mechanism to fund local education costs. Her associate commissioner for tax policy testified on the administration’s behalf that it would be a volatile source of revenue.
Her position has now shifted. In a statement, Mills framed the reversal as a necessary step to protect recent state investments in education and health care — and to deliver relief to property taxpayers.
“It is crucial that we maintain these important investments for Maine people into the future, especially as we face such economic uncertainty because of actions of the Trump Administration,” Mills said. “So, when the Senate President and the House Speaker asked me whether I would support a surcharge on the very wealthiest in the supplemental budget in order to continue funding these investments, I agreed, and I requested that that revenue be used in part to provide property tax relief for hardworking Maine people who are feeling the pinch.”
Political Context
Mills is currently running in a competitive Democratic primary for U.S. Senate. Critics may note the timing of her reversal — coming amid a primary race in which progressive voters tend to favor higher taxes on the wealthy — raises questions about whether the shift is driven by policy or politics.
The budget bill remains in development, and its final form has yet to be determined by the full Maine Legislature.
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