FOR IMMEDIATE RELEASE

AUGUSTA, ME (April 1, 2026) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, released the following statement by NFIB State Director David Clough in reaction to the state Appropriations Committee’s vote last night to add a 2% surtax on millionaires, raising the top Maine tax rate to 9.15%, which would be the highest in New England. The legislative committee is expected to vote today to report out the Supplemental Budget bill (LD 2212) on a partisan vote.

If included in the final state budget that is signed into law by Gov. Mills, Maine would in fact have the third highest in all of the Northeast, behind New York (9.65% to 10.9%) and New Jersey (10.75%). This tax hike could lead to unintended consequences for Maine budget and economy, making the state more vulnerable to the swings in income of a very narrow segment of taxpayers.

“The unwise tax passed last night creates state revenue expectation based on a handful of taxpayers instead of the broad strength of our economy, which should be the main focus of our lawmakers in Augusta,” said Clough. “This significant tax hike unfairly places an extra ‘nest egg penalty’ or ‘sweat equity penalty’ on small business owners who retire after having sacrificed for years to create jobs and build up the value of their business. Raising our top income tax rate to the highest in New England and joining the likes of New York and New Jersey diverts attention from making the Maine economy stronger and helping small businesses survive stiff competition and be successful. Small business owners worry that this is just another shortsighted grab for more revenue for politicians to spend that compounds the perception of Maine as ‘Taxationland.’”

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For over 80 years, NFIB has been the voice of small business, advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit www.NFIB.com.