AUGUSTA – House Democrats voted Friday to give final approval to a bill sponsored by Rep. Ann Matlack, D-St. George, that would restructure Maine’s tax brackets to give middle-class Mainers a tax cut while ensuring the wealthy pay more of their fair share. The vote was 76-71.
“Working class Mainers shouldn’t pay the same tax rates as those at the top, but that’s how our tax brackets are structured. As a result, our tax code is upside down, with those at the top actually paying a lower share of their income in taxes than the middle class,” said Rep. Matlack. “It shouldn’t be this way. Many Maine people are struggling, yet we keep asking for more from those who have the least. Instead, we should ask for more from those who have the most.”
As amended, LD 229 would provide a tax cut for more than 400,000 Mainers. Under Maine’s current tax structure, an individual making $60,000 per year pays the same tax rate as someone making $6 million per year. The bill would increase the current number of Maine’s state income tax brackets from three to five and increase the tax rates for the top two brackets. It would also lower the tax rate for the lowest bracket from 5.8% to 5.5%. If the bill becomes law, it would also lead to a projected state revenue increase of over $65.5 million in fiscal year 2026-27.
“Right now, Maine families earning between $50,000 and $240,000 a year pay a higher percentage of their income in state and local tax than millionaires,” said Rep. Dan Sayre, D-Kennebunk, who serves on the Taxation Committee. “This bill would cut taxes for the vast majority of middle-class families while increasing the tax rates on the top 5% of earners, generating revenue that will be reinvested in health, education, and public safety.”
The bill faces further votes in the Senate.
Matlack is serving her fourth term in the Maine House and represents the communities of St. George, Cushing, Thomaston, South Thomaston and part of Owls Head. She serves on the State and Local Government Committee, the Taxation Committee and the Government Oversight Committee.
Contact:
Brian Lee (Matlack, Sayre) | 305-965-2744