For years, Maine’s tax system has asked too much of working families and too little of those at the very top. Teachers, nurses, tradespeople and countless others who power our state’s economy often pay a tax rate that is as high as, or even higher than, the rate paid by people earning millions of dollars each year. At a time when many Mainers are juggling multiple jobs just to keep up with rising costs, that imbalance is hard to justify. A fair tax system should reflect a person’s ability to contribute, and for too long, ours has not.
Since 2016, I have joined policy advocates and legislators who have been fighting for a more equitable tax structure in calling for the richest in our state to finally pay their fair share. In a referendum that year, Maine voters approved a 3% surcharge on incomes over $200,000, sending a clear message that they supported a fairer tax structure. At the time, we were up against the Paul LePage administration, who was determined to pass tax breaks for the wealthiest in our state. Although voters approved the measure, the Legislature later repealed it.
Opponents to a more equitable tax structure often argue that any attempt to address this disparity would be financially disastrous to Maine. They argue that even the smallest surcharge on wealthy residents’ income would become a catalyst for a so-called “tax flight” — meaning that wealthy residents would rather uproot their homes and leave the state entirely than stay here to pay a modest tax.
Research from the Center on Budget and Policy Priorities has completely debunked this fearmongering tactic. Data from states like Massachusetts show that wealthy residents are not fleeing as predicted. In fact, Massachusetts saw no mass exodus of high‑income households after they passed a 4% surcharge back in 2022. As a result, the added revenue allowed the state to invest in infrastructure, education and childcare initiatives.
This year, the Maine Legislature finally took action to correct a longstanding injustice by creating a new 2% surcharge on annual incomes over $1 million. This new tax, which was inspired by a measure that I introduced, is expected to be applicable to only 2,600 Mainers — less than 0.4% of our population — but the benefits for our entire state will be substantial. The new law officially took effect on July 29.
The millionaire’s tax is projected to generate up to $150 million in revenue in as little as two years. That money will go into the state’s general fund and can be used to support a wide variety of initiatives that can benefit all Mainers, not just a select few.
This tax isn’t about punishing anyone for being successful, it’s about creating a fairer balance. For far too long, the responsibility for funding our public schools, healthcare, and energy programs has fallen more heavily on working families than on those who can most afford to contribute. This modest tax is one small step toward correcting that imbalance.
No teacher grading papers late into the night, nurse working a double shift, or electrician restoring power during a winter storm should shoulder the same tax burden as someone earning millions of dollars a year. This modest tax is unlikely to change the lifestyle of Maine’s wealthiest residents, but it can make a meaningful difference for the communities we all depend on. It is a small but significant step toward a stronger, fairer Maine.
Rep. Cheryl A. Golek, D-Harpswell, is a member of the Legislature’s Joint Standing Committee on Housing and Economic Development as well as the Marine Resources Committee. She is serving her second term in the Maine House representing Harpswell and part of Brunswick.