GOP Proposal Would More Than Double Gov's Income Tax Cut Plan
Republican lawmakers are considering doubling a tax cut Gov. Greg Gianforte has proposed for the top marginal income bracket.
Gianforte’s original proposal would have cut the tax rate for residents making about $18,000 or more a year from 6.9% to 6.75%. It’s expected to reduce state revenue by about $30 million a year.
Rep. Rhonda Knudsen, R-Culbertson, suggested amending Senate Bill 159 to drop the tax rate even further to 6.5%. The House Taxation Committee has not yet voted on whether to advance the amended bill, as lawmakers are waiting for an updated fiscal note showing how much more revenue it would cost.
The state Senate advanced Gianforte’s original income tax proposal on a mostly party line vote. Republicans are supportive, saying the tax cut will make Montana a more desirable place for businesses to move.
Democrats oppose the measure, saying it disproportionately benefits the wealthy while marginally helping low- and middle-income residents.
Copyright 2021 Montana Public Radio. To see more, visit Montana Public Radio.