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Rep. Sally Cluchey represents Maine House District 52, including Richmond, Bowdoin, and Bowdoinham. Rep. Matthew Beck represents House District 122, part of South Portland.
As lawmakers begin debating Maine’s supplemental budget, some politicians are once again calling for Maine to automatically adopt recent federal tax changes. While the idea is often promoted as tax relief for working people, the reality is far more complicated and far more costly for Maine.
Every year, Maine lawmakers review federal changes to the tax code and decide which ones make sense for our state and which do not. This process is called “tax conformity.” Our state’s careful, deliberate approach has served Maine well, and it matters more than ever right now.
Some legislators are pushing to automatically adopt the full federal tax package, which would tie Maine to a set of policies that are deeply unpopular nationwide and heavily tilted toward the wealthiest individuals and large corporations. Analysts estimate that doing so would reduce Maine revenue by roughly $360 million every year. To put that in perspective, that is more than the state spends annually on its entire public university system.
About two-thirds of that lost revenue, roughly $240 million, would flow to large corporations, including retroactive tax breaks for equipment purchases going back to 2022. And those losses would be permanent, locking in long-term revenue losses that Maine would struggle to absorb.
Supporters of automatically adopting federal tax changes often point to narrowly targeted provisions and argue that they would help working people. But in reality, only a small share of Maine workers benefit from this — while the ones who gain the most are the wealthiest individuals and corporations. With so many already struggling to keep up with rising costs, it’s critical that we not replicate those harmful changes here in Maine.
These revenue losses would also come at an especially dangerous time. Federal funding has already been slashed for programs Mainers rely on every day, including health care, nutrition assistance, housing support, energy assistance, childcare, and education. More cuts are likely. But when federal dollars disappear, the burden does not vanish. It shifts to states and municipalities, and Maine will be expected to fill the gaps.
At the same time, property taxes have risen sharply across the state. Families in small towns and cities alike are struggling to keep up with higher bills, while counties face growing costs to provide core services like public safety, emergency response, and the operation of county jails. Maine’s current budget surplus provides flexibility to respond to these challenges, but only if we use it wisely.
Instead of automatically adopting a deeply flawed federal tax package that dramatically favors the wealthy and corporations, we should focus on stabilizing property taxes, protecting essential services and preserving the state’s ability to respond when federal funding falls short. Fortunately, Maine lawmakers have already advanced solutions that would deliver exactly this kind of relief to working families.
Last year, the Legislature passed LD 229, a working-class tax cut that lowers income taxes for all Mainers earning under $300,000 a year by adjusting tax brackets and rates. This approach delivers broad-based, permanent relief to the people most affected by rising costs, while preserving the state’s long-term fiscal health. Many of our colleagues supported this measure because it prioritizes working families and responsible budgeting.
The Legislature has also passed LD 599, which would expand overtime protections by raising the annual salary threshold for overtime exemptions from $45,300.32 to $58,656. This change ensures that more salaried workers are fairly compensated when they work long hours, strengthening paychecks across the workforce
If we are serious about helping Mainers who are struggling with high property taxes, rising prices, and economic uncertainty, these are the sorts of measures we should support. We believe we should use Maine’s surplus to expand the Property Tax Fairness Credit, fund broad-based income tax relief, support fair compensation for workers, and help local governments meet rising costs.
Maine people deserve policies that are fair, fiscally responsible, and focused on those who need help the most. As budget negotiations move forward, residents should reach out to their state legislators and Gov. Janet Mills, urge them to reject costly federal tax changes, and encourage them to invest in solutions that truly support working families.