LD 1089 would impose a 2% income tax surcharge on income above $1 million for single filers, $1.5 million for heads of households, and $2 million for married couples filing jointly. The revenue, projected at roughly $64 million per year, would go into a new fund earmarked for K‒12 education. The bill narrowly failed in the House 70-72, was revived by Sen. Mike Tipping, and carried over to 2026.
The promise is simple: tax the wealthy, fund our schools. But Maine has already increased per-pupil education spending by 71% since 2013, now exceeding $20,000 per student. In return, the 2024 NAEP found Maine had the largest decline in reading and math proficiency of any state in the country, dropping 10 percentage points since 2019. Only a third of 4th graders are proficient in math. Pouring more money into the same system with no accountability or reform attached is not a plan, it’s a blank check.
Also, its unlikely to bring in the revenue sponsors think. The Mills administration’s own associate commissioner warned that this surcharge targets “a small population of taxpayers who have considerable control over when, where and whether to spend.” They have the easiest path to avoid the new taxes altogether, by leaving our state. Maine families deserve results before Augusta asks for another dime.