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On behalf of the Maine State Chamber of Commerce, thank you to Gov. Janet Mills for vetoing legislation that would have increased income tax rates in Maine. We strongly encourage the Legislature to sustain the governor’s veto.
The bill, LD 1231, would increase Maine’s top income tax rate from 7.15 percent to 8.45 percent. Today, as Maine is making much-needed progress in growing our population, our tax climate matters more than ever. We want to continue growing our population and economy by attracting new businesses, families, workforce and remote workers, too. Raising taxes could cause prospective new residents to be more likely to relocate to other states. Maine already ranks as having one of the highest tax burdens in the nation. We cannot afford to risk our economic attractiveness by raising taxes that make Maine less competitive.
The Maine State Chamber recognizes that LD 1231 aims to provide tax relief to some Mainers, and we welcome a comprehensive effort to provide tax relief for Maine taxpayers. However, LD 1231 represents a step backward for Maine. It would reverse the significant strides the Legislature has made to lower the top tax rate in 2011 from 8.5 percent to 7.95 percent and then to 7.15 percent in 2015, where it remains today, and would make Maine a less attractive state to live and work.
The Maine State Chamber appreciates Mills’ veto and her commitment to protecting Maine people and businesses from tax increases, particularly as our economy faces ongoing headwinds including high interest rates, inflation, workforce shortages and more.
We encourage the Legislature to sustain the governor’s veto of LD 1231.
Linda Caprara
Vice president of advocacy
Maine State Chamber of Commerce
Augusta
