FOX Business' Gerri Willis Joins 'Varney & Co.' reporting on South Hadley, Massachusetts, residents vote for a 50% property tax hike as retirees warn of price gouging and a broader tax revolt grows across the country.
Maine has officially joined the ranks of high-tax states as Democratic Gov. Janet Mills signed a new billionaire tax into law, prompting immediate warnings that the measure would penalize local business owners and discourage investment.
From 1 Jan. 2026, this new law bypasses general Republican opposition to implement a permanent income tax levy as included in the supplemental budget bill. The law, titled LD 2212, allows for a 2% tax on income exceeding $1 million and $1.5 million for joint filers.
It pushes Maine's top marginal rate from 7.15% to 9.15% and affects about 2,600 filers, as the new tax is expected to bring in $160 million over the next two years.
Progressive lawmakers and Gov. Mills, who has opposed such increases, says the tax is a necessary response to government policies and a way to fund “Free Community College.”
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“This budget will bring significant relief to Maine residents who are facing rising prices as a result of the Trump Administration's reckless actions,” Mills said in a press release. “The additional budget returns money directly to Maine people, builds on my Administration's historic investment in housing, keeps Free Community College alive, brings more property tax relief and child care funding and most importantly, preserves critical funding for schools and health care for years to come.”
A view of the harbor in Bernard, Maine. (Getty Images)
“Those who benefit most from our economy do so because of the people, infrastructure and communities that support that success,” said State Rep. Cheryl Golek, D-Harpswell, told the Michigan Advance. “Requesting a small additional contribution from the wealthiest in our state is a reasonable and widely supported step toward a fairer system.”
However, in the weeks following the law's passage, the Maine State Chamber of Commerce warned that it was acting as a tax on local businesses and retirees.
“This new fine doesn't hit Wall Street – it hits the sale of local businesses that have kept people working for decades. When a Maine business owner finally sells after 30 years of hard work, we shouldn't punish that moment of success,” said former Maine president and business owner Brian Langley at a news conference.
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“Many Maine businesses, especially small and family-owned companies, would feel the direct impact of higher taxes, reducing their ability to reinvest, grow and hire,” said Maine State Chamber of Commerce President and CEO Patrick Woodcock. “At a time when our economic outlook is uncertain, those resources should be focused on strengthening Maine's long-term growth potential.”
Additionally, conservative fiscal watchers argue that Maine is moving to another state, where many states are currently lowering rates to attract residents.
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FOX Business anchor David Asman analyzes green states' push for higher wealth and property taxes on 'The Bottom Line.'
“Twenty-three states have cut their lowest income tax rates since 2021, and six states have reversed, giving a widening gap between high and low tax states. The small amount Maine could collect from the high income tax is not worth the damage to the state's economic competitiveness,” Tax Walczaks wrote recently.
Maine joins the blue states of Washington, Massachusetts and New Jersey in passing taxes related to millionaires. States such as New York, Illinois and Michigan are evaluating proposals or facing suspended efforts.
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