A proposal for an income tax surcharge on Mainers with the highest incomes, to fund public education, failed in the Maine Senate by just one vote — and three Democratic lawmakers were among those who opposed it. This happened just one day after the bill also failed to pass in the House of Representative by two votes with six Democrats voting against it. The bill is currently being held in the Senate, as it may be reconsidered.
The bill, LD 1098, would add a 2% surtax on individual income over $1 million and household income over $2 million. The tax would generate more than $50 million annually for education funding.
Thursday’s final Senate vote was 17 in favor and 18 opposed. Democrats Jill Duson of Cumberland, Teresa Pierce of Cumberland, and Craig Hickman of Kennebec voted no.
In the House, the vote was 70 in favor and 72 opposed. Democrats Allison Hepler of Woolwich, Holly Sargent of York, Christin Mitchell of Cumberland, Dani O’Halloran of Brewer, Tiffany Roberts of South Berwick, and Walter Gerard Runte of York all voted no.
Currently, someone earning $1 million pays the same percentage of their income in taxes as someone earning $61,000, which advocates point out leaves tens of millions in potential revenue untapped.
In voting against the bill, the Senators were going against popular opinion on such a tax: polling from the Maine People’s Resource Center (which is affiliated with Maine People’s Alliance, of which Beacon is a project) found that 81% of Maine voters support increasing taxes on income over $1 million. Supporters included 65% of Republicans and 65% of voters who identify as “very conservative”.
Maine Center for Economic Policy tax analyst Maura Pillsbury previously called LD 1098 a necessary step. “The programs families rely on are under threat because our tax code asks too little of those at the top — and LD 1089 starts to fix that,” she said. “The public is ready. The math works.”
Maine lawmakers did pass two major tax reform bills yesterday that now head to Gov. Janet Mills, who has previously opposed similar efforts. LD 229 would restructure Maine’s income tax system by expanding from three to five brackets and adding higher rates of 7.75% and 8.95% for top earners.
The second bill, LD 1879, raises the top corporate tax rate to 10% on income over $3.5 million starting in 2026, with new revenue earmarked for agricultural and economic resilience programs. Despite initial disagreement between the chambers, the Senate ultimately reversed its stance and voted to agree with the House.
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