Gov. Greg Gianforte is urging lawmakers to reduce the state’s top income tax by one percent. That tax bracket includes workers who earn at least $18,000 annually.
Gianforte says his plan benefits the most taxpayers.
“Ours is, we believe, the only one that reduces taxes for Montanans at every income level.”
Gianforte is also proposing expanding a tax credit for those on low-incomes.
Opponents of the governor’s plan argue it’ll cost the state too much revenue.They also say it disproportionately benefits the wealthiest Montanans.
Republican Sen. Mike Yakawich of Billings says his bill offers a solution to that frustration, and is targeted toward middle-income constituents.
“They were asking me for income tax relief.”
Yakawich’s proposal would raise the income limit on the lowest tax bracket, so more people would qualify to pay a lower rate. The bill would not cut taxes for the top 20% wealthiest residents.
The bill has bipartisan support from Democrats who are cautious about a tax cut’s impact on state revenue. House Minority Leader Katie Sullivan from Missoula is a co-sponsor of Yakawich’s bill.
“If we’re going to be players in this and try and keep things focused on middle class, and I hear 'it’s going to happen and we’re going to do one,' like I’ve gotta jump into it and put my weight where I can,” Sullivan says.
Speaker of the House Brandon Ler of Savage is sponsoring a third proposal to cut income taxes. It would also raise the income limit on the lowest tax bracket while cutting the top marginal rate by half a percent.
Gianforte says he’ll consider any bill that gets to his desk.
