Republicans Send Tax Cut Proposals To Governor
A slate of bills to cut taxes in Montana is moving to Republican Gov. Greg Gianforte for consideration. Gianforte campaigned on the promise to cut taxes for the state and advocated for several of the proposals in his budget.
The policies passed mostly along party lines, with Republicans in favor and Democrats against.
One bill would simplify Montana’s income tax code from seven brackets to two, and would eliminate 23 tax credits in the process. Another bill would cut taxes for the top marginal tax rate from 6.9% to 6.75% in 2022, and then to 6.5% in 2024.
A different tax cut proposal aims to bring new businesses to the state by exempting people from paying capital gains taxes on stock sales tied to new businesses made up of at least 30% Montana residents. However, businesses that engage in activity that is illegal federally, like marijuana sales, would not be eligible to benefit.
Gianforte will also consider a bill to significantly increase a tax credit residents can claim for donations that help pay student tuition at private schools. The maximum allowable state income-tax credit for donations would increase from $150 per person to $200,000 per person.
Republican Senate President Mark Blasdel said during a press conference Tuesday that with all of the proposed tax cuts combined, the state would lose about $120 million in revenue over the next two years.