Robbing the poor to pay the rich
MT GOP gouge state coffers ... HB 337 - a drastic tax cut for the rich signed into law is a $250 million handout to the top
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News from Andrew Useche, House Democrats Communications Director
HELENA — Montana Republicans affirmed their commitment recently to transforming Montana into a playground for the wealthy when the state’s multi-millionaire Governor Greg Gianforte signed HB 337. HB 337 lowers Montana’s top income tax rate from 5.9% to 5.65%. In effect, the measure will gouge $250 million from state revenue, which ensures essential services, and jeopardize the state’s financial stability.
House Democratic Leader Katie Sullivan (D-Missoula) said, “The Governor’s income tax proposal was designed by — and benefits — the Governor’s ultra wealthy friends, not everyday Montanans. The vast majority of the benefit will go to the wealthiest earners at the top, while the rest of us will get peanuts. This tax cut for the rich is the Governor’s third in a row. Clearly, his top-down approach is not making a dent in affordability.”
“Government does not exist to give tax cuts to people who do not need them. Government exists to fund schools, fix roads, and provide public safety. Democrats do not support robbing people of essential services to pay for tax cuts for people who absolutely do not need them,” said House Appropriations Committee Vice Chair Rep. Mary Caferro (D-Helena). “The public is not crying out for more tax cuts for people at the top.”
Senate Democratic Leader Pat Flowers (D-Belgrade) said, “It doesn’t target the Montanans who actually need it, who are the lower- and middle- income Montanans.”
Despite the Governor’s claims that this tax break will help the middle class, a recent analysis shows66% of the benefit going to the top 20%. The top 1% will get more than $6,000 in tax cuts while the lowest-income Montanans will get less than $100.
Instead of a tax break for the Governor’s wealthy friends, a small portion of the $250 million per year could have been invested in the following proposals, each turned down by Republican lawmakers this session:
— Expanding child care scholarships to the middle class: $31 million (HB 457)
— Supporting families by providing a $1,200 per-child income tax credit to families making under $50,000: $31 million (HB 220)
— Incentivizing affordable housing by providing a tax credit to landlords that rent below market rate: $9.5 million (HB 306)
— Supporting new families by requiring health insurance to cover IVF treatment: $6 million (HB 565)
— Keeping Montanans in their homes and preventing homelessness by creating an emergency solutions grant for rapid-rehousing: $1 million (HB 843)
— Supporting students by establishing a school mental health promotion pilot program: $250,000 (HB 385)
