Committee Advances Millionaire’s Tax Legislation to Fund Schools

Demonstrators at a rally in Augusta. Photo by Maine People's Alliance.

Last week, the Maine Legislature’s Taxation Committee voted 7-5 to advanceLD 1989, An Act to Permanently Fund 55 Percent of the State's Share of Education by Establishing a Tax on Incomes of More than $1,000,000, which would add a 2 percent tax on income over $1 million for individuals or $2 million for couples to help fund public education in Maine. The measure would generate $100 million in revenue over the next biennium to help fund our schools.

“The wealthy should pay their fair share,” said Maine AFL-CIO Legislative and Political Director Adam Goode. “Right now, Maine’s tax code treats someone earning over $61,600 the same as a millionaire. That’s absurd. Someone making over $1 million should pay a higher rate than a plumber, a nurse or a firefighter.”

If passed, the bill would help several school districts around the state that have been forced to choose between laying off staff and raising property taxes to fill budget holes. Recent polling from the Maine People’s Resource Center found that a vast majority (81 percent) of Maine voters support increasing income taxes on earnings over $1 million. A majority of Mainers also opposed the funding cuts to housing, health care and child care programs included in Gov. Janet Mills’ initial budget proposal.

During the public hearing on the bill, Lucas St. Claire, whose foundation owns 125,000 acres of timberland in Northern and central Maine, expressed support for the bill.

"My family is very wealthy and we would be required to pay more in taxes if these bills pass. I also work full time and, along with my wife, are raising two young kids here in Maine. We care about the future of this state,” he said. “The inequitable tax structure of today may be perceived to benefit my family and me. What is really true is that this unfair tax undermines the overall health of our communities. The wealthy should pay our fair share in taxes. Period."

LD 1879 and a companion bill LD 1879, which would apply a 1.07% additional corporate income tax on annual corporate income exceeding $3,500,000 to fund agricultural programs, are headed to the House and Senate for further votes.