Governor Mills rejects conformity with federal tax relief measures

Augusta - Today, Governor Janet Mills issued a Determination and Direction to the State Tax Assessor declining to conform the administration of 2025 Maine tax returns with several provisions passed in the federal "One Big Beautiful Bill Act" (OBBBA). The provisions Maine will not adopt include no tax on tips, no tax on overtime and an increase in the standard deduction. Mainers will still pay state taxes on these earnings, limiting the relief.

"It's never enough for Maine Democrats. Instead of taking this opportunity to provide much-needed relief to Maine citizens, our Governor has chosen to continue with her unsustainable tax-and-spend mentality," said Senate Republican Leader Trey Stewart, R-Aroostook. "Democrats' angry obsession with opposing anything President Trump touches is going to continue to hurt Maine people. They continue to choose benefits for people who don't work over tax relief for people that do. Legislative Republicans will not support any budget bill that doesn't provide broad-based tax relief."

"Hard-working Mainers deserve no tax on tips and no tax on overtime - relief that was promised in President Trump's Big Beautiful Bill. But Janet Mills refuses to deliver. Earlier this year, she even tried to jack up taxes on pharmacies and ambulances to keep up with out-of-control spending. And now she and the Democrats are cutting off more than $425 million in direct tax relief," said House Republican Leader Billy Bob Faulkingham, R-Winter Harbor. "That money belongs to Mainers, plain and simple. The folks hauling traps, waiting tables and swinging a hammer see it plain as day: Republicans have their backs while Augusta Democrats continue to show they're out of touch with everyday Mainers trying to make ends meet."

"Mainers experience some of the highest tax burdens in the country. This was an opportunity for substantive tax relief for Maine's low and middle-income families," said Assistant Republican Leader Matt Harrington, R-York. "Now, at the direction of Governor Mills, our tax burden will only increase relative to other states. I suppose ranking in the top five for highest tax burden wasn't enough for the Governor and Augusta Democrats - they want to be number one."

"Maine citizens are burdened with excessive taxation brought on by overspending," said Assistant House Republican Leader Katrina Smith, R-Palermo. "It is unconscionable that working families, seniors and young people just getting started will be denied relief. This out-of-touch mentality is why Maine has one of the highest tax burdens in the country -and why our state continues to fail its citizens on so many fronts."

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