Legislative Update: Millionaires Tax Public Hearing on Wed, March 26th

Across the state school districts are facing tough decisions, including laying off teachers and staff, budget shortfalls due to inflation and the ending of federal pandemic relief money. Increasingly, advocates are calling on the Legislature to repeal former Gov. Paul LePage’s 2011 tax cuts for the rich, which eliminated millions of dollars in revenue.

The Maine Legislature’s Taxation Committee will hold a public hearing on a measure to fund schools by taxing the very wealthy on Wednesday, March 26, at 10am. LD 1089, 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, sponsored by Rep. Cheryl Golek (D-Harpswell), would impose 4% on that portion of a taxpayer's Maine taxable income in excess of $1 million to fund public pre-K-12 education.

This is similar to a law passed by Maine voters in 2016 that imposed a 3 percent tax on individual state taxable income above $200,000. The voter-mandated measure was repealed by Gov. Paul LePage and the Legislature in 2017. The intent of that bill was to reverse some of the income tax cuts on high earners passed in 2011.