FOR IMMEDIATE RELEASE

AUGUSTA, ME (April 7, 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 urging lawmakers not to include a 2% surtax on millionaires, raising the top Maine tax rate to 9.15%, which would be the highest in New England. The state Appropriations Committee added the provision in a late-night vote last week and is expected to report out the Supplemental Budget bill (LD 2212) on a partisan vote. NFIB and business allies are holding a press conference at the capitol this morning underscoring the importance of this issue.

If included in the final state budget that is signed into law by Gov. Mills, Maine would in fact have the third highest top tax rate in all of the Northeast, behind New York (9.65% to 10.9%) and New Jersey (10.75%). Worse still and most unfairly, Maine’s new 9.15% rate will be higher than the top corporate income tax rate (8.93%) for the state’s largest business taxpayers. That means small business owners could be hit harder than the very largest corporations with operations in Maine.

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. NFIB State Director Clough has already heard from small business members who are thinking of moving their business to a lower-taxed state. The loss to the state of such moves would be income taxes and significant estate tax levies, as well. As one NFIB member has written: “We are a third-generation business and are disgusted with the business climate here!”

“The unwise tax does nothing to bolster 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 ‘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. Many small business owners do not fund retirement plans because they plow cash flow back into their businesses. They are relying on the selling price of their business to be the assets on which they will get their retirement income. Small business owners across Maine do not take high wages, rather investing their cash flow back into the business, so they do not get higher payments from Social Security when they retire.”

“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,” continued Clough. “Small business owners see this as 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.