Maine: Wealth Taxes Are Spreading
The Wall Street Journal reports:
Maine has one of the nation’s smaller economies, rooted in timber, lobster, manufacturing and tourism.
But it also has growing pockets of wealth, which have caught the attention of state bean counters. Maine this month joined a growing list of blue states exploring or adopting new taxes on the highest earners, enacting a new 2% surcharge on annual income over $1 million.
The state’s new levy shows that wealth taxes aren’t just for states groaning with tech founders and hedge-fund billionaires. Even small or midsize economies see opportunity to raise revenue through new income-tax levies on top earners.
These Democratic-led states say the extra revenue is badly needed to fund state services in the wake of federal cuts to healthcare and food assistance from President Trump’s tax and spending bill. Republicans and state chambers of commerce generally oppose the taxes, warning they will undermine entrepreneurship and potentially lower state revenue by driving away well-off residents.