Democrats Add Millionaire Tax to Mills' Final Budget Over GOP Objections
The 2% tax on income over $1 million would hit about 2,600 filers and raise $150 million as the governor's $300 relief checks survive a GOP fight.
Democrats on the Legislature's budget committee voted late on March 31 to add a tax on millionaires to Gov. Janet Mills' two-year spending plan over Republican objections, the Bangor Daily News reported.
The 2% tax on income above $1 million would reach just over 2,600 filers and bring in $150 million over two years, Democrats said. It mirrors a bill from Rep. Cheryl Golek, D-Harpswell, backed by progressive groups, among them the Maine Center for Economic Policy. Mills' tax office opposed that bill in 2025, and the governor has long resisted raising taxes on high earners.
The committee also kept Mills' $300 relief checks, projected to cost $218 million and reach 725,000 Mainers. Republicans have called the checks a political stunt, and Sen. Cameron Reny, D-Bristol, joined them in voting against that piece. Democrats do not need Republican votes to pass the budget, but the House is split 75-72 with three unenrolled members, so a few defections could sink it.
Mills' original plan called for $275 million in new spending, bringing the two-year budget to nearly $12 billion, plus about $290 million from reserves for the checks and housing programs. On March 30, appropriators followed her plan to not adopt some provisions of President Donald Trump's One Big Beautiful Bill Act, such as no tax on tips and overtime.
It is the final major spending plan of Mills' tenure as she runs in a Democratic U.S. Senate primary against Graham Platner.
This story was first reported by Bangor Daily News.
