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LD 1089

An Act To Permanently Fund 55 Percent Of The State'S Share Of Education By Establishing A Tax On Incomes Of More Than $1,000,000

132nd Legislature (2025-2026) Introduced by Bill Bridgeo and 9 co-sponsors

Maine would tax incomes exceeding $1 million to create permanent, stable funding for 55% of public school costs, replacing variable annual state appropriations with dedicated revenue.

The Bill was in the possession of the House when the Legislature adjourned Sine Die and was placed in the Legislative Files. (DEAD)
#brackets #incometax #rate
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Bill Summary · LD 1089

Legislative bill overview

LD 1089 establishes a new income tax on Maine residents earning over $1 million annually, with revenue dedicated to permanently funding 55% of the state's share of K-12 education costs. The bill aims to create a stable, long-term funding mechanism for public schools rather than relying on annual appropriations.

Why is this important

Education funding directly affects school resources, teacher salaries, and student outcomes across Maine. A permanent funding structure could provide schools with predictable budgets for multi-year planning, while a high-income tax introduces a significant policy shift that affects Maine's tax competitiveness and revenue distribution. This represents a major structural change to how the state funds one of its largest budget items.

Potential points of contention

  • Tax burden and economic impact: Critics argue a millionaire tax may discourage high earners from relocating to or remaining in Maine, reducing overall tax base, while supporters contend it targets only the wealthiest 1-2% and increases fairness
  • Constitutional questions: Maine's uniformity clause in its tax code may face legal challenges regarding whether a tax applied only to incomes above $1 million violates equal protection principles
  • Funding adequacy: Debate over whether revenue from this narrow tax base reliably generates 55% of education costs or if it creates vulnerability if economic conditions change and millionaire income fluctuates

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

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