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LD 1047

An Act To Impose An Additional Tax On Certain Unearned Income

132nd Legislature (2025-2026) Introduced by Matt Beck and 9 co-sponsors

Failed Maine bill would have added state tax on unearned investment income; rejected by committee May 2025.

Pursuant to Joint Rule 310.3 Placed in Legislative Files (DEAD)
#4percenttax #capitalgainstax #miscellaneoustaxes
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WeVote Research Nonpartisan
Bill Summary · LD 1047

Legislative bill overview

LD 1047 proposed imposing an additional tax on certain types of unearned income in Maine. The bill was introduced by five legislators but failed to advance, receiving an "Ought Not to Pass" (ONTP) recommendation from committee in May 2025 and ultimately being placed in legislative files without enactment.

Why is this important

Unearned income taxation—affecting investment returns, dividends, capital gains, and similar sources—directly impacts how different income types are treated under state tax code. Such proposals influence wealth distribution, investment incentives, and state revenue generation, making them significant for both individual taxpayers and state budgets.

Potential points of contention

  • Definition and scope: Which specific types of unearned income would be targeted (capital gains, dividends, interest, rental income) and whether exemptions would apply
  • Economic competitiveness: Concerns that higher taxes on investment income could drive investors or businesses to neighboring states with lower rates
  • Regressivity considerations: Questions about whether the tax primarily affects wealthy individuals or inadvertently impacts middle-class retirement savings, pension funds, and endowments

Compiled from official sources — confirm details with the bill’s official record.

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