Montana Lawmakers Shoot Down Second Attempt To Expand Low-Income Tax Credit
Montana Republicans Friday voted down a proposal to expand the states Earned Income Tax Credit for the second time. It’s Democratic lawmakers latest policy proposal to find little traction this session.
House Bill 631 was the second iteration of a bill that would have increased the Earned Income Tax Credit from 3% to 10%. The credit benefits moderate- and low-income households.
Lawmakers voted down the bill along party lines, and then decided to table it.
The initial version of the bill would have also created a new tax on income greater than $500,000 per year to pay for the reduction in tax revenue, but that was also rejected.
Democratic Rep. Emma Kerr-Carpenter of Billings sponsored the proposal.
Democrats haven’t had success moving forward with their vision for state tax policy.
Republicans, who hold majorities in both chambers, are instead advancing tax policy bills that would reduce the top marginal income tax rate, the business equipment tax and the capital gains tax.