A new state surtax on income over $1 million made it into Maine’s proposed supplemental budget last week — and Gov. Janet Mills surprised many people, and impressed this editorial board, by saying she approves of the proposal.
What began as a legislative bill is now on track to deliver an estimated $96 million in revenue next year. According to the Maine Center for Economic Policy, the surtax is expected to apply to roughly 2,600 filers — or 0.4% of Maine taxpayers.
This measure is fair and appropriately limited in scope. It’s a very sensible new revenue stream that, if substantial analysis that says intra-state “tax flight” by wealthy individuals is a myth is borne out — other places, sure, but you’re going to leave Maine? – is also a robust and safe one.
A small bit of polling released last week suggests voters agree. The results of a poll by the Maine People’s Resource Center showed 69% of voters in support of the tax (party to party, 94% of Democrats, 70% of independents and 46% of Republicans).
Mills’ preliminary expression of support — in the form of a single, casual statement — carries more weight because it was not expected. Raising tax of any kind is something another governor who’s running for U.S. Senate in 2026 might be swift to shut down.
Responding to an op-ed published here last Sunday (“Taxation in Maine needs to follow the money,” March 29), many of our readers expressed concerns about driving people out of Maine. Others expressed dissatisfaction about any more cash going to a government in which they say they feel limited trust. Some said they were in favor of a wealth tax in theory, but that this wasn’t the right time, politically, for it to be put into practice.
It appears Mills is not concerned about the timing point and it’s hard to imagine Democratic legislators will be, either. The point about trust, however, should be looked upon almost as a caveat.
If Maine is going to do this, it has a duty to get it right. If the budget is passed, the administration responsible for administering the new revenue would be wise to go to lengths to show the taxpaying public what a difference the pulling of this lever made, and where. Without that, skepticism will not only continue; it will deepen.
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