406 Tax Relief

Statement

We need to collect taxes to pay for government and we must balance our state budget, however, government growth has significantly outpaced economic growth in Montana for too long. State spending is up over 20% in just the past three years and the current administration in Helena has vetoed multiple tax reduction bills that would have left more money in your pocket.

We can do better.

I learned from over 30 years starting and growing businesses that sustainable jobs and opportunities are only created in the private sector, not by government programs. Streamlining regulations, lowering taxes and slowing the growth of government will energize our economy and create more high wage jobs so we can stop exporting our kids.

A lower tax burden is one step toward unleashing Montana's potential and starting to lift us out of 49th position nationally in wages.

We must also be aware that Montana's economy is beginning to see storm clouds overhead. Layoffs are piling up all across Montana, and state revenues are starting to decline. The commodities boom that was handed to the current administration is over. Now is the time for real leadership to navigate these difficult times. It's time to stimulate Montana's economy and create new high wage job opportunities. Doing nothing is not an option.

406 Tax Relief is a set of top level priorities to leave more money in Montanan's pockets and to make it easier to attract and retain employers in Montana. There will be areas where we need to invest; however, whenever possible I will use overpaid taxes to buy down tax rates across the board. I think that is the fairest way to let folks in Montana keep more of their hard earned money. Here is the start:

Eliminate Business Equipment Tax in 4 Years

One Montana business person told me that he invested in a single piece of equipment that created 20 high wage jobs. His reward? A $300,000 business equipment tax bill over 10 years. If we want Montana small businesses to grow and succeed, why would we punish job creators for purchasing more equipment to hire more Montanans?

The Business Equipment Tax is one of the most regressive taxes on the books in Montana. It is an annual tax on all the equipment job creators own. Hotel owners even have to pay it on every fork and spoon they own--EVERY YEAR! It hits farmers, manufacturers, construction, oil/gas and high tech hard; basically any business that invests to create jobs is currently incentivized to invest elsewhere. It chases off investment and jobs. Most states don't have a tax like this. Also, because equipment value is self-reported, the tax is prone to being under-reported. I am committed to eliminating the business equipment tax over 4 years as revenue from other sources grows. Any reduction in the business equipment tax must also provide relief to counties that depend on these tax revenues today.

Zero Increase in Overall State Spending

We have had massive growth in state spending; up over 20% in the past three years. There are areas where we need to be investing more, like education and job training, but technology should help us generate some efficiencies elsewhere. My goal is to have zero net increase in our first two-year budget after inflation and population adjustment, and a desperately needed one-time infrastructure investment.

No Sales Tax

I am opposed to a statewide sales tax. A state sales tax would hit working families the hardest. Given the troubles in Montana's economy, now is the time to give working families tax relief, not a tax increase.

Lower Income Taxes for All, Max Rate of 6%

My opponent vetoed three tax-reduction bills last year alone. He did that while sitting on hundreds of millions of dollars in overpaid taxes. That's your money.

Lowering income taxes across the board is one of the fairest ways to help Montanans keep more of their hard earned money. I will bring our top income tax rate down from 6.9% to 6.0% with additional adjustments so that virtually all of Montanans will see a reduction in their income tax bill. Plus, our income tax system is too complicated and we need to simplify it. Filing taxes will be easier, state operating costs will go down, and most importantly, we will leave more money in hardworking Montanans pockets.

Let me be clear. Any tax reduction would be broad and benefit all Montanans.

Similar legislation already passed the Montana House, and the Montana Senate- and the incumbent governor took that work and threw it in the waste bin. I pledge to work with the legislature for you.

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