Bill Requiring Supermajority Approval for Any Tax Hikes on Mainers Set for Public Hearing on Monday

A proposed constitutional amendment requiring at least two-thirds support to increase Mainers’ taxes is up for a public hearing early next week.

On Monday, April 28 at 11am, the Taxation Committee will hold a public hearing on LD 1553 in Room 214 of the Cross Building, located directly across from the State House.

Mainers looking to make their voices heard on whether Maine’s constitution should require a supermajority vote in the legislature to raise taxes may either appear in person to testify, speak virtually at the hearing over Zoom, or submit written testimony online.

To sign up to give virtual testimony or to submit written testimony, individuals may use the online form found here: www.mainelegislature.org/testimony.

LD 1553 — sponsored by Rep. Rachel A. Henderson (R-Rumford) — seeks to require the Legislature to obtain two-thirds support in both chambers for any tax increases imposed on the people of Maine. Given the political breakdown of the state, such a measure would ensure bipartisan support of any hikes.

Taxes may also be increased directly by Mainers themselves through the direct initiative process.

Because this resolution seeks to amend the state’s constitution, it would, if successful, largely guarantee that its terms remain effective for the foreseeable future.

In order to amend the Maine Constitution, a proposal must in itself be approved by at least two-thirds of lawmakers and be ratified by a majority of voters at the ballot box.

As the resolution is currently written, the ratification question presented to voters would read: “Do you favor amending the Constitution of Maine to require that the rate of taxation imposed by the State with regard to any tax may not be increased and a new tax may not be imposed by the State unless by consent of the people by exercise of their right of direct initiative or by a 2/3 vote of the members of each House?”

Cosponsoring this bill are Sen. Bruce Bickford (R-Androscoggin), Rep. Donald J. Ardell (R-Monticello), House Minority Leader Billy Bob Faulkingham (R-Winter Harbor), Rep. Randall Adam Greenwood (R-Wales), Rep. Thomas A. Lavigne (R-Berwick), Rep. Mathew David McIntyre (R-Lowell), Rep. Arthur Kevin Mingo (R-Calais), Rep. Tracy L. Quint (R-Hodgdon), and Rep. Shelley Rudnicki (R-Fairfield).

Click Here for More Information on LD 1553

This resolution comes as lawmakers consider several other bills that would raise taxes on some of Maine’s highest earners.

For example, Rep. Grayson B. Lookner (D-Portland) is hoping to impose an additional four percent tax on capital gains earned by residents over a certain threshold.

[RELATED: Maine Dems Looking to Impose Additional 4% Capital Gains Tax on Earnings Over Certain Threshold]

Currently, Maine taxes capital gains alongside all other forms of income. Under the existing structure, this means that they are taxed at a rate of 7.25 percent at most.

Under this proposal, however, the additional four percent surcharge would bring the maximum tax rate on this portion of Mainers’ income to 11.25 percent.

[RELATED: Maine Dems Look to Tax Income Over $1 Million to Increase Funding for Public Schools]

Another bill would levy an additional four percent tax on income earned over $1 million to fund public education.

The four percent tax would only be applied to the portion of a Mainer’s income that is above the $1 million threshold, meaning that everything up to that point would not be subject to this additional fee.

As the law is currently written, revenue collected from this tax could only be used to fund public pre-kindergarten through grade 12 education.

[RELATED: Tax the Rich — Democrat Lawmakers Look to Restructure Maine’s Income Tax Brackets, Raise Taxes on Top Earners]

Democrat lawmakers have also proposed restructuring Maine’s income tax brackets in such a way that those earning more than $144,500 per year will be subject to a higher tax rate.

To accomplish this, three new tax brackets would be added to encompass individuals earning over $144,500, heads of household earning more than $216,750, and married couples making over $289,000.

The proposed law would also nearly double the upper threshold for the state’s lowest income tax bracket, allowing a broader swath of Mainers to qualify for it.

[RELATED: Should Maine Be Charging Residents Income Tax? These Lawmakers Don’t Think So]

Some Republican legislators, however, have introduced proposals that would do away with the state’s income tax entirely, beginning in January of 2026.

The state would also be directed to develop a zero-based budgets for fiscal years 2026-27 and 2028-29. From that point on, all departments and agencies in the Executive, Legislative and Judicial Departments of State Government would be required to create a zero-based budget at least once every eight years.

In other words, all corners of the state government would regularly be required to reconsider all aspects of their spending and rebuild their budgets from the ground up.

During off-years, departments and agencies would need to undertake “targeted budgeting or a similar alternative” that include, at a minimum, recommendations for five percent and 10 percent spending reductions.

Public hearings have already been held for all of these proposals, but official recommendations have yet to be reported out to the Legislature.