Maine has officially joined the ranks of high-tax blue states after Democratic Governor Janet Mills signed a new millionaire tax into law, effective January 1, 2026. The legislation, titled LD 2212, imposes a 2% tax on individual incomes exceeding $1 million and $1.5 million for joint filers, raising the state's top marginal tax rate from 7.15% to 9.15%. This measure is expected to impact approximately 2,600 filers and generate about $160 million in revenue over the next two years. Supporters, including Mills and progressive lawmakers, argue that the tax is a necessary response to federal policies and will fund vital services such as Free Community College. However, critics, including the Maine State Chamber of Commerce, warn that the tax could stifle local entrepreneurship and investment, particularly affecting small and family-owned businesses. They argue that this move is contrary to trends in other states, where many are reducing tax rates to attract residents and businesses. As Maine joins states like Washington, Massachusetts, and New Jersey in implementing millionaire taxes, the debate continues over the potential economic implications.