AUGUSTA — A new report by Republican Gov. Paul LePage’s office says the surtax on Maine’s highest earners that voters approved last November will negatively impact the state economy.

The surtax makes Maine have one of the nation’s highest tax rates on top of earners with a 10.15 percent tax on earnings over $200,000.

Supporters at a Monday hearing said the surtax helps the state reach its annual target of providing 55 percent of school funding.

But the Maine State Chamber of Commerce said it’s making it tougher to attract talent and retain high earners.

Republican Rep. Joel Stetkis’s bill would repeal the surtax, while Republican Sen. Dana Dow’s bill would provide school funding through other ways.

Republican Rep. Heather Sirocki’s legislation would put the initiative on the November 2018 ballot.

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