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Maine Enacts 2 Percent Surcharge On Income Above $1 Million

Maine has enacted a 2 percent surcharge on individual taxable income above $1 million, effective for the coming tax year. The measure targets the state's highest earners and seeks to boost revenue for state programs and services. Lawmakers approved it this year.

The Wall Street Journal framed the change as part of a broader trend of wealth-tax ideas moving into less-wealthy states. Earlier coverage mainly linked high-end surtaxes to larger, more affluent states; newer reporting notes that budget pressures and political shifts have broadened the debate. The Journal's piece helped highlight that evolution by pointing out moves beyond the usual blue-state examples.

Public response has been mixed, mirroring national divides over taxes on top earners. Supporters say the surcharge promotes fairness and funds services, while critics warn it could drive wealthy taxpayers and complicate state business climates. Policymakers will likely watch revenue results and legal challenges as the surcharge takes effect.

State Tax Policy U.S. Economy and Inequality
This story is compiled from 1 source using AI-assisted curation and analysis. Original reporting is attributed below. Learn about our methodology.

📌 Key Facts

  • Maine enacted a 2 percent income-tax surcharge on annual income over $1 million
  • The policy was approved this month in a state with a relatively small, resource-based economy
  • Maine joins a growing list of Democratic-led states exploring or adopting higher taxes on top earners

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April 19, 2026
1:00 AM
Wealth-Tax Fever Is Spreading to Less-Wealthy States
The Wall Street Journal by Jeanne Whalen