AUGUSTA — Supporters of three bills to increase taxes on the wealthy are continuing to push lawmakers to pass the measures with just weeks left in the legislative session.
The Maine People’s Alliance filled the State House halls last week with volunteers who pulled legislators aside for one-on-one lobbying.
“We need a state government that has the revenue it needs to fund essential services to respond to the massive federal cuts to health care to food assistance to education that we’ve been seeing out of this current presidential administration in DC,” said Gus Dunn-Hindle, a legislative strategist with the alliance.
One bill currently under consideration would add a 2% tax on incomes over $1 million to provide a permanent funding stream for local education. It would generate an estimated $75 million a year.
Another would raise the corporate tax rate on profits over $3.5 million by about 1%. That could draw $50 million a year.
The final bill would increase state income taxes on those with high incomes to bring in about $90 million a year.
On Friday, a coalition of 21 business groups, led by the Maine Association of Realtors, said they are urging lawmakers to reject the 2% tax on incomes over $1 million and the measure to increase taxes on individual high earners.
“The taxpayers already paid their share of the state’s fiscal burden through existing income and property taxation,” the statement reads. “Charging an additional surcharge or increase on income to support state programming is an over-reaching and inequitable proposal.”
The statement also warns that changes to Maine’s tax brackets will hurt the housing industry and notes that wages in Maine are “more than 20% below the U.S. benchmark.”
The lobbying efforts by both sides come as the Legislature’s Appropriations Committee looks to finish work on a budget proposal. The final product is likely to look quite different from what Gov. Janet Mills put forward earlier this year.
Her proposal included taking more than $200 million out of the state’s rainy-day fund to pay for $300 checks to be sent to Mainers who make less than $75,000 a year. She also wants to make free community college permanent for high school graduates.
Last week, the budget committee put out a bond package proposal with more than $200 million in borrowing requests. That includes $20 million for housing, $64 million for transportation and $45 million to support the agriculture industry.
“Bonding allows us to make smart, targeted investments now that will save money over time and reduce pressure on the General Fund,” Sen. Peggy Rotundo (D-Lewiston) said in a statement. “This package is carefully structured to address urgent needs while maintaining Maine’s strong fiscal footing.”
The tax and spending measures are just some of the hundreds of bills lawmakers will consider before adjourning for the year in mid-April.
