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US Treasury's new Direct File system advances tax fairness. Maine should opt in. • Maine Morning Star

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US Treasury's new Direct File system advances tax fairness. Maine should opt in. • Maine Morning Star


For years, advocates have called for a free tax filing system to allow Americans to directly file their taxes with the IRS. But the powerful lobby of tax prep corporations prevented and delayed the IRS from being adequately funded to allow a Direct File system to be developed, until now. The Inflation Reduction Act increased funding for the IRS and finally gave the IRS the capacity to develop this system.

Now, after a successful Direct File pilot program in 12 states, the U.S. Department of Treasury and the IRS have announced their new Direct File system will be a permanent free option for electronically filing tax returns directly with the IRS. This is a huge opportunity for U.S. taxpayers but states need to opt in to save residents time and money when it comes to filing their taxes.

Tax prep companies misled and exploited consumers

While Direct File is not intended to fully replace the for-profit tax preparation industry, it will help some filers avoid paying fees and provide a reliable, easy tax preparation method. The IRS has always required the big tax preparation software companies to offer free filing options, but these companies often ended up charging users for filings that should have been free, and their deceptive marketing practices led other users to believe filing would be free and then steered them toward paid options.

Free direct filing of federal taxes may be offered soon throughout the U.S.

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Research shows that the for-profit tax preparation industry specifically targeted the most vulnerable taxpayers, especially low-income and Black and brown communities. An estimated 70% of tax filers are eligible to file for free, but less than 3% do so. The U.S. Government Accountability Office found paid tax preparation services made frequent errors and often employed people who were unqualified. Several states, including Maine, sued and settled with these companies for deceiving and charging consumers who were eligible for free services.

Recently completed Direct File pilot saved taxpayers time and money

The federal Direct File system was piloted in 12 states, including Massachusetts and New Hampshire. The pilot was very successful, helping 140,000 filers save time and money, including millions in tax filing costs. Participants praised the interview-style format as user-friendly, featuring a mobile option and chat function to make it easy for any taxpayer to use. The new system supports most common tax situations, and also streamlines the process by prepopulating forms with information the IRS already has on filers. With the success of the pilot, the federal government has invited all 50 states and Washington, D.C., to participate.

Direct File will advance tax fairness in Maine – if we opt in

The Mills administration should take advantage of this opportunity to allow Mainers to participate in Direct File. Maine will need to sign an MOU with the federal government and agree to integrate its state tax filing system with the federal Direct File system to allow Mainers to file their taxes using the new system (residents of states that do not opt in are ineligible for federal direct filing). Maine Revenue Services has recently been working on a complete overhaul of their IT system, and now is the time to take advantage of the Direct File opportunity.

What would this mean for Mainers? Easier and cheaper tax filing and also potentially greater tax savings. The Economic Security Project estimated Mainers could save up to $33 million dollars in filing fees spent on tax preparation software, and between $19 million and $49 million in federal tax credits that are left on the table by Mainers who don’t realize they are eligible for programs like the Child Tax Credit and the Earned Income Tax Credit. These refunds are missed by vulnerable taxpayers who need them most, including Mainers with low-income who may not realize they are eligible. In Maine, almost a quarter of eligible taxpayers do not file for the EITC.

Direct File would help advance tax fairness by ensuring more Mainers get the refunds they are entitled to and providing a dependable, free tax filing option. But only if we opt in.

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This commentary was originally published at the Maine Center for Economic Policy blog. 



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Maine legalized iGaming. Will tribes actually benefit?

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Maine legalized iGaming. Will tribes actually benefit?


Clarissa Sabattis, Chief of the Houlton Band of Maliseets, foreground, and other leaders of Maine’s tribes are welcomed by lawmakers into the House Chamber in March, 2023 in Augusta. (Robert F. Bukaty, /Associated Press)

Maine’s gambling landscape is set to expand after Gov. Janet Mills decided Thursday to let tribes offer online casino games, but numerous questions remain over the launch of the new market and how much it will benefit the Wabanaki Nations.

Namely, there is no concrete timeline for when the new gambling options that make Maine the eighth “iGaming” state will become available. Maine’s current sports betting market that has been dominated by the Passamaquoddy Tribe through its partnership with DraftKings is evidence that not all tribes may reap equal rewards.

A national anti-online gaming group also vowed to ask Maine voters to overturn the law via a people’s veto effort and cited its own poll finding a majority of Mainers oppose online casino gaming.

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Here are the big remaining questions around iGaming.

1. When will iGaming go into effect?

The law takes effect 90 days after the Legislature adjourns this year. Adjournment is slated for mid-April, but Mills spokesperson Ben Goodman noted it is not yet known when lawmakers will actually finish their work.

2. Where will the iGaming revenue go?

The iGaming law gives the state 18% of the gross receipts, which will translate into millions of dollars annually for gambling addiction and opioid use treatment funds, Maine veterans, school renovation loans and emergency housing relief.

Leaders of the four federally recognized tribes in Maine highlighted the “life-changing revenue” that will come thanks to the decision from Mills, a Democrat who has clashed with the Wabanaki Nations over the years over more sweeping tribal sovereignty measures.

But one chief went so far Thursday as to call her the “greatest ever” governor for “Wabanaki economic progress.”

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3. What gaming companies will the tribes work with?

DraftKings has partnered with the Passamaquoddy to dominate Maine’s sports betting market, while the Penobscot Nation, the Houlton Band of Maliseet Indians and the Mi’kmaq Nation have partnered with Caesars Entertainment to garner a smaller share of the revenue.

Wall Street analysts predicted the two companies will likely remain the major players in Maine’s iGaming market.

The partnership between the Passamaquoddy and DraftKings has brought in more than $100 million in gross revenue since 2024, but the Press Herald reported last month that some members of the tribe’s Sipayik reservation have criticized Chief Amkuwiposohehs “Pos” Bassett, saying they haven’t reaped enough benefits from the gambling money.

4. Has Mills always supported gambling measures?

The iGaming measure from Rep. Ambureen Rana, D-Bangor, factored into a long-running debate in Maine over gambling. In 2022, lawmakers and Mills legalized online sports betting and gave tribes the exclusive rights to offer it beginning in 2023.

But allowing online casino games such as poker and roulette in Maine looked less likely to become reality under Mills. Her administration had previously testified against the bill by arguing the games are addictive.

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But Mills, who is in the final year of her tenure and is running in the high-profile U.S. Senate primary for the chance to unseat U.S. Sen. Susan Collins, R-Maine, said Thursday she would let the iGaming bill become law without her signature. She said she viewed iGaming as a way to “improve the lives and livelihoods of the Wabanaki Nations.”

5. Who is against iGaming?

Maine’s two casinos in Bangor and Oxford opposed the iGaming bill, as did Gambling Control Board Chair Steve Silver and the Maine Center for Disease Control and Prevention, among other opponents.

Silver noted Hollywood Casino Bangor and Oxford Casino employ nearly 1,000 Mainers, and he argued that giving tribes exclusive rights to iGaming will lead to job losses.

He also said in a Friday interview the new law will violate existing statutes by cutting out his board from iGaming oversight.

“I don’t think there’s anything the board can do at this point,” Silver said.

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The National Association Against iGaming has pledged to mount an effort to overturn the law via a popular referendum process known as the “people’s veto.” But such attempts have a mixed record of success.



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Flu, norovirus and other illnesses circulating in Maine

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Flu, norovirus and other illnesses circulating in Maine


While influenza remains the top concern for Maine public health experts, other viruses are also currently circulating, including norovirus and COVID-19.

“Influenza is clearly the main event,” said Dr. Cheryl Liechty, a MaineHealth infectious disease specialist. “The curve in terms of the rise of influenza cases was really steep.”

Maine reported 1,343 flu cases for the week ending Jan. 3, an uptick from the 1,283 cases recorded the previous week, according to the Maine Center for Disease Control and Prevention. Hospitalizations increased to 147 from 108 during the same time periods.

“I hope the peak is now,” Liechty said, “but I’m not really sure.”

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The U.S. Centers for Disease Control and Prevention reported on Friday that all of New England, except for Vermont, is currently experiencing “very high” levels of influenza. Vermont is in the “moderate” category.

“What we are seeing, overwhelmingly, is the flu,” said Andrew Donovan, associate vice president of infection prevention for Northern Light Health. “We are seeing both respiratory and gastrointestinal viruses in our patients.”

Norovirus also appears to be circulating, although due to its short duration and because it’s less severe than the flu, public health data on the illness — which causes gastrointestinal symptoms that typically resolve within a few days — is not as robust.

“Norovirus is the gastrointestinal scourge of New England winters and cruise ships,” Liechty said.

According to surveillance data at wastewater treatment plants in Portland, Bangor and Lewiston, norovirus levels detected in those communities are currently “high.” The treatment plants participate in WastewaterSCAN, which reports virus levels in wastewater through a program run by Stanford University and Emory University.

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Dr. Genevieve Whiting, a Westbrook pediatrician and secretary of the Maine chapter of the American Academy of Pediatrics, said viruses are prevalent right now, especially the flu and norovirus.

“For my patients right now, it’s a rare encounter that I hear everyone in a family has been healthy,” Whiting said. “I’ve had families come in and say their entire family has had norovirus. Several of my patients have had ER visits for suspected norovirus, where they needed IV fluids because they were dehydrated.”

Both Liechty and Whiting said they are seeing less respiratory syncytial virus, or RSV, likely because there has been good uptake of the new RSV vaccine, which is recommended for older people and those who are pregnant. The vaccine was approved by the Food and Drug Administration in 2023.

“The RSV vaccine has been a real success, as RSV was a leading cause of hospitalizations for babies,” Whiting said.

Meanwhile, COVID-19 cases increased to 610 in the final week of 2025, compared to 279 the previous week. Influenza and COVID-19 vaccinations are available at primary care, pharmacies and clinics across the state.

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“If you haven’t gotten your flu shot yet,” Liechty said, “you should beat a hasty path to get your shot.”



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After feds cut key food insecurity survey, Maine lawmaker urges state to fill data void

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After feds cut key food insecurity survey, Maine lawmaker urges state to fill data void


With food insecurity on the rise, Maine lawmakers are scrambling to ensure they have a sense of how many people are going hungry after the federal government’s recent cancellation of a key food insecurity survey. The U.S. Department of Agriculture’s Household Food Security Report, started under former President Bill Clinton, measured rates of food insecurity […]



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