PRESS RELEASE
FOR IMMEDIATE RELEASE
January 10, 2025
Contact: Jacob Posik
Director of Legislative Affairs
Office: 207.321.2550
Release: Maine Policy’s Initial Response to Gov. Mills’
Biennial Budget Proposal
Increasing sin taxes under current law amounts to regressive, backwards public health policy and further breaks Gov. Mills’ promise not to raise taxes
PORTLAND, Maine – Maine Policy Institute CEO Matthew Gagnon issued the following statement today in response to Gov. Janet Mills’ biennial budget proposal:
“No Mainer should have to pay higher taxes of any kind to make up for Gov. Mills and the Legislature’s irresponsible spending over numerous majority budget cycles. The proposal put forward by Gov. Mills today shows that she does not take seriously the promise she made numerous times not to raise Mainers’ taxes.
“While some of the proposed cuts within Maine DHHS are appropriate and welcome, Gov. Mills is balancing the budget on the backs of some of Maine’s poorest and most disadvantaged citizens and households by raising $80 million in new sin taxes. Sin taxes on tobacco products are regressive and disproportionately impact low-income Mainers. According to the U.S. Centers for Disease Control and Prevention, low-income households use tobacco products at rates much higher than middle and high-income households.
“Because Maine has changed the legal definition of tobacco to include nicotine products of any kind, in addition to equalizing the tax on these products with the tax on cigarettes, our state will continue down the path of backwards public health policy under the governor’s proposed budget. Tobacco and nicotine products should be taxed on a continuum of risk, meaning Mainers should have financial incentive to use less harmful products – like nicotine pouches and vapes – over traditional and more harmful cigarettes. That is how we responsibly reduce the health risks and corresponding healthcare costs of tobacco consumption.
“Instead of raising $80 million through increased sin taxes, lawmakers should work to find an additional $80 million in waste to cut from Maine’s next budget.
“Maine Policy will review and analyze the entirety of the Mills administration’s biennial budget request when it becomes available on the Bureau of the Budget website and provide additional comment and analysis in the coming days.”
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Maine Policy Institute is a nonprofit, nonpartisan organization that works to expand individual liberty and economic freedom in Maine. Learn more about our work at www.mainepolicy.org.