LARGE Tax Increase Now In Effect

Democrats rejected a voluntary Republican proposal for paid family medical leave and imposed a mandatory $448 million tax increase on Maine workers

Hey Maine, this is Representative Alicia Collins of Sidney your Weekly Republican Address. 

Paid family medical, if done properly, is a goal worthy of support.

Many Maine businesses currently offer it as an incentive to attract and keep valued employees.

Republicans favored a voluntary program that allowed employees and employers the choice of whether or not to participate.

New Hampshire has a voluntary program. It is possible that Maine could be part of that program and ultimately lower costs for employees and businesses.

Instead of taking that approach, Maine Democrats have created an expensive, expansive, mandatory program that includes an estimated $448 million dollar tax increase.    

Affected worker paychecks were lower beginning January 1, even though workers cannot use the program until May 1, 2026.

Workers and businesses must pay the new tax regardless of whether or not they ever use the program.

The new tax was passed over the objections of Republicans by inserting it into a supplemental budget bill that Republicans opposed.

Since its passage, it has become increasingly apparent that the program is poorly thought out and ripe for potential abuse.

Workers will be eligible to take 3 months of paid leave for almost any reason. This includes being caregiver for a friend, roommate, or neighbor with emotional or mental health issues.

After the duration of paid leave, employers are required to hire the employee back, if they come back at all.  During that period, businesses would have to leave a position unfilled or hire an additional employee.

Public hearings have identified many other problems beyond the $448 million dollar tax increase.

Rep. Josh Morris of Turner has introduced legislation to repeal the tax increase with the hope of exploring a voluntary paid family medical leave program that does not hurt workers, close more small businesses, or wreck our economy.

With a $1 billion dollar budget shortfall and one of the highest tax burdens in the country, Maine cannot afford yet another expensive, poorly thought out government program that imposes higher taxes on workers and small businesses.

We can have a voluntary, low cost, paid family medical leave program that achieves the same objectives for families without putting more burdens on Mainers struggling to survive.

This has been Representative Alicia Collins with the Weekly Republican Radio Address.

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