Maine Legislature Overturns Question 2's 3% Income Tax Surcharge

July 19, 2017 Alerts and Newsletters

Verrill Dana and its affiliate Maine Street Solutions were pleased to serve as legislative and grassroots consultants to support the Maine State Chamber of Commerce and the Keep Maine Competitive Coalition's effort to repeal Question 2. As you recall, Question 2 increased Maine's top income tax rate by 3% on individuals or households who report taxable income of more than $200,000. Our collective efforts to eliminate the tax hike were successful.

The Chamber and the Coalition strongly believed that increasing the State's marginal income tax rate to 10.15% (nearly the highest in the nation) would have a devastating impact on Maine. The rate hike would have undermined Maine small businesses' ability to compete, and posed a significant disincentive for recruiting and retaining professionals.

Question 2 was tied to the goal of increased funding for K-12 education. By its terms, proceeds from the 3% surtax were supposed to be set aside for public schools. From the beginning, the Chamber adopted the objective of honoring the goal of increased education funding without damaging the Maine economy.

After months of negotiations, the Legislature successfully repealed Question 2, while providing over $160 million in additional state funds to public education.

Throughout this lengthy process, numerous clients and friends of Verrill Dana expressed their concerns to legislators about the many ways that a 10.15% income tax rate could undermine Maine's economy. Those efforts made a difference, and helped erode arguments and lobbying by Question 2's proponents. Thanks to those of you who took action.

Please contact us if you'd like further information or have any questions about this repeal or about Maine's new budget.

Firm Highlights

News

Massachusetts Insurers Receive $100M from Obamacare

On March 11, 2021 Boston Business Journal published an article, "Feds have paid Mass. insurers over $100M from Obamacare settlement," discussing that the cash influx could reduce premium increases in the third quarter of...

Matter

Government Relations: Preserving Legal Right of Private Company to Acquire a Maine Company

Some transactions go smoothly. But when they don’t, Verrill is ready. The proposed acquisition of a publicly traded company in Maine by large multinational corporation was just such a transaction. For months, the multinational...

Matter

Energy: Omnibus Energy Legislation

Verrill represented Emera as part of Omnibus Energy Legislation authorizing the State of Maine to procure up to $75 million of natural gas capacity in New England. Our goal was to ensure that the...

Matter

Government Relations: Verrill Helps Neighborhood Group in Dispute Over Proposed Ferry Legislation

In 2013, Jim Cohen helped a group of Yarmouth, Maine residents in a state legislative dispute involving the private ferry service serving the Town of Chebeague Island. In early 2013, the ferry service proposed...

News

First Meeting on Climate Equity Panel

On February 24, the Governor’s Office of Policy Innovation and the Future sent out a press release regarding the panel on climate equity to hold first meeting on February 26. During the meeting, experts...

News

Advice from Former Portland Charter Commission

On June 23, Portland Phoenix published an article, "Those who have been there predict Portland Charter Commission faces steep learning curve," discussing the organizational meeting with Portland's newly elected Charter Commission. In the meeting...

Contact Verrill at (855) 307 0700