Augusta, Maine — Today, Americans for Prosperity (AFP) calls on the Maine Legislature to reject the supplemental state budget proposal that includes a new income tax surcharge that punishes success and discourages investment. The Appropriations and Financial Affairs Committee advanced the measure to the full Maine Legislature for debate.
AFP Northeast Region Director Ross Connolly said:
“Maine lawmakers are doubling down on the same failed playbook used by neighboring states that have led to higher taxes and more spending with little to nothing to show for it. The so-called “millionaires’ tax” would slap a new 2% surcharge on income over $1 million. Maine should focus on attracting investment and jobs, not penalizing residents.
“High-performing states are lowering taxes to broaden their base, increase revenue, and encourage economic growth. If the Pine Tree State does not want to risk generating an exodus of residents like Massachusetts, they must do the same to ensure families and businesses can stay, invest, and thrive.”
According to a recent Pioneer Institute study, Massachusetts residents are fleeing the state following a 4% surtax, causing the state to lose roughly $4.18 billion in adjusted gross income due to net out-migration. If implemented, Maine could face similar out-migration trends, weakening its economy and reducing the very revenue lawmakers are hoping to generate.
