AUGUSTA — Groups representing union workers, teachers, children and families are calling on lawmakers to raise taxes on the wealthy, rather than cut services for others.
Mainers for Tax Fairness, led by the left-leaning Maine Center for Economic Policy, highlighted three bills Thursday from Democrats that seek to rebalance the income tax brackets and raise taxes on high earners and corporations.
The groups say a 2011 tax cut primarily benefitted the wealthy and it’s time to ask those who can afford it to pay more.
“Maine can avoid harmful budget cuts that leave vital workers undervalued and under paid and that make it harder for Mainers to find affordable childcare and health care by asking the wealthiest residents to pay their fair share in taxes,” said Maura Pillsbury, tax policy analyst with the economic policy center.
Those proposed cuts are part of Gov. Janet Mills’ $11.6 billion, two-year budget, which reduces state funding for Head Start and payments to childcare workers as one way to close a budget gap.
The budget also includes an array of what Mills describes as targeted tax increases: a $1 per pack increase in the cigarette tax, increased sales taxes on recreational cannabis and a new tax on streaming services.
Pillsbury said the economic policy center believes Mills is open to some of their proposals as well.
“We think the governor has opened the door to the conversation about new sources of revenue,” Pillsbury said. “We are hoping that that’s the start of a conversation about other revenue sources in addition to the ones that she’s looking at. We’re encouraged she is considering that.”
In response, Mills' spokesman Ben Goodman referred Spectrum News to the governor's budget address in which she said she doesn't like "revenue increases." In a statement, he added that her budget proposal rejects increases to the sales or income tax.
During a State House news conference, the coalition highlighted bills that would:
- Raise Maine’s top tax rate on corporations with taxable income over $3.5 million. It would bring in an estimated $5 million a year that would go to support farmers. Bill sponsor Rep. Bill Pluecker, an independent from Warren, said he’s looking to get revenue from big businesses like Amazon, Apple, Walmart and Coke.
- Institute a 4% surcharge on income over $1 million. The so-called “millionaires’ tax” would provide a permanent stream of revenue for the state to continue to fund 55% of the cost of local education, said Rep. Cheryl Golek (D-Harpswell). It’s estimated to generate $200 million over the next two years.
- Expand the number of tax brackets from three to six to shift more of the tax burden to high earners. With just three brackets, the current system is “upside down,” said Rep. Ann Matlack (D-St. George). As an example, she said the current system means someone making $50,000 a year is paying the same 7.15% tax rate as someone making $150,000 a year or more.
Rep. Anne Graham (D-North Yarmouth) said she is co-sponsoring Matlack’s bill because she wants to support the middle class. She said a similar bill — sponsored by a Republican — was vetoed by Mills last year and she thinks rebuilding the system could get bipartisan support.
“We have a missing middle, a middle class that has not been paid attention to,” Graham said. “We’re losing them.”