Maura Pillsbury is a state and local tax policy analyst at Maine Center for Economic Policy, a nonpartisan research and advocacy organization working to improve the economic well-being of all Mainers.
In response to Sen. Bruce Bickford’s Dec. 18 op-ed, full state conformity to HR 1 — the Republican megabill also called the One Big Beautiful Bill Act — would be a costly mistake for Maine.
HR 1 is a massive windfall for the wealthy and big corporations, slashing health care and support programs to pay for tax giveaways to those who need it least.
The senator omits critical facts. Full conformity would cost Maine over $360 million per year, according to Maine Revenue Services. Two-thirds of this is tax giveaways primarily to big corporations, including millions in retroactive benefits for investments businesses made as far back as 2022.
He also fails to mention that Maine legislators already made the higher standard deduction permanent, reducing taxes by $300 million per year for Mainers.
Despite the senator’s claims, these policies don’t target those who need help most. In fact, they are regressive, providing greater benefits as income rises.
While HR 1 offers only small, time-limited benefits to a narrow slice of working-class Mainers, trillions in tax cuts for millionaires and large corporations are made permanent. Only 2% of Maine workers would benefit from the tip deduction, and only 5% would benefit from the overtime deduction.
While the ultra-wealthy enjoy an all-you-can-eat buffet, these are the table scraps thrown to working Mainers.
Consider the vehicle tax credit. HR 1 includes a tax credit for new vehicles, but it’s only available for cars purchased for personal use between 2025 and 2028 that are assembled in the United States. Most Mainers won’t qualify for this — especially those who need it most and can’t afford a brand-new car. Even worse, this provision could expose Maine to costly litigation. Unlike the federal government, states aren’t permitted to treat domestic and foreign commerce differently. Foreign manufacturers could sue Maine for adopting a tax credit that discriminates against their products.
These policies are poorly targeted and fundamentally unfair. Fair tax policy treats all income equally. Why should we tax bartenders’ income differently than child care workers’ or direct care workers’ income? If we want to help working people, we should pursue policies that benefit a broader range of workers — like expanding the salary threshold for overtime eligibility or strengthening labor protections for all workers in the gig economy.
Maine has the constitutional authority to chart its own path. Each time federal tax laws change, the Legislature — not the governor — must decide what to adopt or reject. Under Article IX, Section 9 of the Maine Constitution, “the Legislature shall never, in any manner, suspend or surrender the power of taxation” — not to the governor, and certainly not to the president of the United States. Conformity shouldn’t mean surrendering Maine’s fiscal sovereignty. The state’s tax code doesn’t have to mirror federal law if it isn’t right for Maine people.
Yes, Maine has more revenue than expected this year. But that doesn’t mean we should rush to give tax breaks that primarily benefit wealthier Mainers and big corporations while potentially jeopardizing our commitments to health care, education, infrastructure and other vital services. We also face the looming impact of federal cuts to the social safety net and many other unmet needs in our communities.
Instead of falling for simplistic calls for conformity, Maine should focus on tax policy that strengthens the economy and expands opportunity for all residents. Lawmakers can reject policies that undercut the state’s fiscal health or disproportionately benefit wealthy interests and selectively adopt provisions that serve the majority of working Mainers.
Mainers don’t need gimmicks. They deserve policies grounded in what actually helps working families get ahead.
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