Maine has always been a place where we care about each other and our communities. So as the federal government slashes taxes for the wealthy and corporations, we face a fundamental choice: Will we continue an upside-down tax system that favors the privileged few, or will we demand that the wealthiest among us pay their fair share so everyone in our state can thrive?

Republicans in Washington are doubling down on favoring billionaires over everyday Americans, so now is the time for Maine to lead by enacting progressive revenue reforms that protect working families, fund our schools and ease the pressure of rising property taxes on middle-class homeowners.

The truth is, Maine’s tax system is rigged in favor of wealth over work. A nurse or teacher pays the same tax rate on their hard-earned wages that a wealthy investor pays on stock market gains. Meanwhile, most working- and middle-class Mainers have the majority of their wealth tied up in their homes — and as income and capital gains taxes for the richest have been cut, property taxes have soared. Towns struggle to fund schools and basic services, older Mainers are priced out of their homes and young families can’t find affordable child care.

This isn’t an accident. It’s the result of decades of policies that reward passive wealth over hard work. Since the 2017 federal tax cuts, the income threshold for Maine’s top 1% has skyrocketed from $473,000 to nearly $790,000, an increase of over $316,000 a year, while wages for the bottom 20% of Mainers rose only $6,000, representing a net loss when taking into account the increase in the cost of living. At the same time, Congress has failed to close loopholes like the stepped-up basis, allowing dynastic wealth to grow tax-free and inequality to accelerate.

But Maine doesn’t have to wait for Washington to act. We have a Clean Elections system designed to free our politics from the influence of wealthy donors. Now we need tax policies that reflect those same values.

LD 1047 and LD 1089, which would modestly increase taxes on capital gains and income over $1 million, are key steps toward fairness. These bills wouldn’t affect 99% of Mainers, but they would generate hundreds of millions to invest in education, infrastructure and housing — the foundations of a strong economy. These are popular proposals with broad public support, but politicians in Augusta continue to wring their hands and worry about attack ads funded by billionaires like Leonard Leo and Elon Musk.

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Opponents will claim these taxes hurt growth, but the evidence proves otherwise. States with millionaire taxes have seen strong economic performance while funding vital services. Capital gains tax breaks don’t create jobs — they simply reward existing wealth. What does grow our economy is investing in people: well-funded schools, affordable health care and reliable infrastructure.

Maine voters have already shown they support tax fairness. In 2016, they overwhelmingly approved a surcharge on incomes over $200,000, only to see lawmakers repeal it. Now, with federal tax cuts draining resources from our state, we must try again.

This is about more than revenue — it’s about who we are as a state. Do we believe a lobsterman should pay higher taxes than a Wall Street speculator? Do we accept a system where teachers and firefighters struggle while the wealthy exploit loopholes? Maine has always been a place where hard work means something. It’s time our tax code reflected that.

The federal government may keep cutting taxes for the rich, but Maine can choose a different path. Let’s stand up for working families, fund our future and build a tax system that works for everyone — not just the privileged few.

 

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