PORTLAND, ME — In a wide-ranging interview on WGAN’s Inside Maine, U.S. Senator Susan Collins issued a sharp critique of Governor Janet Mills’ administration, accusing the state’s executive branch of “blocking” critical tax relief for Maine’s working families and seniors.
The Senator argued that while federal laws have been updated to provide relief on tips, overtime, and Social Security, the state of Maine has moved in the opposite direction by refusing to align the state tax code with these federal changes.
A Growing Tax Gap for Maine Workers
During the discussion with host Shawn Moody, Senator Collins highlighted three specific federal provisions designed to combat the rising cost of living—provisions she says Governor Mills chose not to adopt at the state level:
- Tax-Free Tips: New federal rules allow workers to deduct up to $25,000 in tips from their federal income taxes.
- Overtime Relief: Measures to reduce the federal tax burden on hourly employees working extra shifts.
- Social Security Protections: Efforts to end the “double tax” on Social Security benefits for all but the highest income earners.
“It is absolutely appalling that Governor Mills blocked provisions of the federal law from going into effect in the state of Maine,” Collins said. “If you are a server in a restaurant or you’re in another tipped job, you can deduct it at the federal level, but you’re still going to be paying taxes on those tips at the state level.”
Protecting Maine’s “Backbone”
Collins, whose family has operated a retail lumber business in Northern Maine for six generations, emphasized that Maine’s economy relies heavily on small businesses. According to the Senator, 90% of Maine businesses employ fewer than 20 people.
She argued that by failing to parallel federal tax breaks, the state is effectively penalizing the very people—hourly workers, tradespeople, and retirees—who form the state’s economic foundation.
“I just cannot figure out why the governor decided to block this tax relief… Imagine, seniors could have gotten tax relief on their Social Security at the state level that they won’t get now due to her decision.”
A Focus on Community and the Trades
The conversation also pivoted to the importance of vocational training and the “strong sense of community” that defines Maine. Collins pointed to her work securing funding for welding, plumbing, and nursing programs at Maine’s community colleges as a vital path toward a “comfortable life” in the trades.
“You can have a terrific life in the trade… it gives a lot of options to people,” Collins noted, sharing anecdotes from her recent visits to the Fisherman’s Forum in Rockland and sled dog races in Fort Kent.
As Maine continues to grapple with affordability and a shrinking workforce, the Senator’s comments signal a deepening divide between federal and state tax priorities heading into the next legislative cycle.
