Maine House Bill LD1047

Maine 2025-2026 Regular Session

• Introduced: 3/12/25
• Refer: 3/12/25
• Failed: 5/28/25

Caption

An Act to Impose an Additional Tax on Certain Unearned Income

Summary

LD 1047 proposes to impose an additional 4% tax on capital gains income, which the bill describes as certain unearned income, beginning with tax years on or after January 1, 2025. The surtax would apply only to capital gains above specified thresholds: $250,000 for individuals filing separately, $375,000 for heads of household, and $500,000 for married couples filing jointly. In effect, the bill creates a higher tax rate on high-income investment gains while leaving gains below those thresholds subject to existing tax law. The measure is aimed at taxpayers with substantial capital gains and would operate as an add-on to Maine’s current income tax structure. Because it targets investment income rather than wages or salaries, it would primarily affect higher-wealth individuals, investors, and households realizing large asset sales. The bill would amend state tax law by adding a new tax layer for qualifying capital gains beginning in 2025.

Impact

If enacted, LD 1047 would change Maine’s tax code by adding a new 4% surtax on capital gains above the stated filing-status thresholds. This would increase the tax liability of taxpayers with large amounts of investment income and could raise additional state revenue. The bill does not alter the taxation of ordinary earned income, but it would directly affect individuals, households, and possibly business owners or investors who realize significant gains from the sale of assets.

Sentiment

No committee transcript or vote record is provided, so there is no documented debate or recorded sentiment in the materials supplied. Based on the bill text alone, the proposal appears to reflect a policy preference for taxing high levels of investment income more heavily. The absence of recorded votes or testimony means support and opposition cannot be reliably characterized from the available record.

Contention

The main point of contention likely concerns whether capital gains should be taxed more heavily than other forms of income and whether the thresholds are set appropriately. Supporters would likely view the bill as a progressive tax measure focused on high-income taxpayers, while opponents may argue it could discourage investment, affect business owners selling assets, or increase Maine’s tax burden on capital formation. Because no hearing testimony or vote history is included, specific arguments from legislators or stakeholders are not available.