Democrats Propose Tax Breaks For Low- And Middle-Income Montanans
Montana Democratic lawmakers rolled out three policy proposals on Thursday that they say will provide tax relief to the state’s middle- and low-income earners. The tax breaks would be paid for by increasing taxes on people who make more than $500,000 a year.
Democrats are proposing an income tax credit to offset property tax and rental costs for low-income households, to expand Montana’s Earned Income Tax Credit and to make social security income exempt from state income tax for middle- to low-income Montanans.
House Minority Leader Kim Abbott of Helena explained the party's reasoning.
“Our strategy here is to give a break to working folks — the folks that make our economy run, who need it the most, and who we know are going to spend it in their community," she said.
Abbott said the package is projected to cost around $50 million and Democrats will propose paying for that by increasing income taxes for people who earn more than $500,000 per year. The policies must find Republican support in order to move forward.
Gov. Greg Gianforte has proposed exempting new businesses who bring jobs to Montana from the state’s capital gains tax, as well as a broad based income tax cut.