What would you do if you won the lottery?
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There are various possible responses. Many people would invest a large majority of those funds into something or somebody that they trust. Generally speaking, this is referred to as sound financial literacy.
The state of Montana won the lottery in a sense by receiving an unexpected large windfall of tax revenue. Montana taxpayers didn’t purposefully with awareness just write a check for $6 billion dollars extra to the state in the last two biennium combined, it was simply a windfall of general fund discretionary dollars.
My conservative approach is / was to invest this back with people we trust to invest it wisely, Montana taxpayers. Sound economics recognizes that dollars are much more productively placed in the hands of citizens than dollars in the hands of government. Furthermore citizens, after investing, will increase the future tax base creating a healthier future for everyone. This is called the differential in the multiplier effect of money.
Big government bureaucrats from both parties spent the vast majority of this lottery windfall, like stepping on a rake ... ouch. We need wiser legislators to guide our state on a long-term sustainable wise path. Conservative legislators have right answers but simply just don’t have enough votes to legislate. As a compromise last session on the house floor, I proposed one-third of the windfall be used for prisons etc. (more than enough) and one-third for other bill objectives (Way more than enough) and one-third back to our taxpayers. It didn’t have a chance, not enough votes. Thankfully conservatives did garner the votes to lower income tax rates to moderate the future revenue stream some.
Because our government lacks financial literacy it’d be better off if they didn’t win the “lottery.” OPM (other people’s money) can be addictive when the wrong people are in charge. Which brings me to property taxes - that’s a subject for my next letter.
We are at risk of weak legislators introducing a third tax, which will add octane to the government growth group, please don’t buy their rhetoric.
Question your candidates. Are they really financially literate? Where possible, examine their voting record. What would they do if they won the lottery?
Terry Falk
Whitefish
