ITEP Work in Action
Montana Budget & Policy Center: Tax Credits for Workers and Families
November 23, 2022
Montana has an opportunity to invest high state revenues to support families and individuals and improve our tax system. State tax credits targeted to those in most need of assistance help Montanans struggling to afford necessities. By expanding the state Earned Income Tax Credit (EITC), establishing a refundable state Child Tax Credit (CTC), and passing […]
Montana Budget & Policy Center: Policy Basics: Who Pays Taxes in Montana
March 3, 2021
Our tax dollars serve as shared investments in the programs and services that make our state a great place to live, work, and play. Tax dollars enable Montanans to work together for things we cannot achieve alone like a quality education for our children, the development and maintenance of infrastructure, public safety through police and […]
Montana Budget & Policy Center: What Proposed Tax Cuts Really Mean for Montanans
February 3, 2021
The 2021 Montana Legislature has the opportunity to address longstanding inequities in Montana’s tax code that have made life harder for many families. Previous legislatures have chosen to balance the budget by cutting needed services for our seniors, Montanans with disabilities, and those struggling with mental health instead of finding common-sense solutions to fairly increase […]
Montana Budget & Policy Center: House Bill 300: Sales Tax Proposal Makes Montana’s Taxes More Regressive and Reduces State Revenue
February 5, 2019
Replacing property taxes with a sales tax is both impractical and unfair for Montana families. HB 300 would make Montana’s tax system more regressive, increasing the taxes paid by families living on lower- and middle-incomes in the state while decreasing the taxes paid by the wealthy. Read more here
Law360: Montana Mulls Statewide Sales Tax To Replace Property Taxes
January 24, 2019
Montana could become the first state in the nation to eliminate residential and commercial property taxes in exchange for creating a new 2.5 percent statewide sales tax...
Montana Budget & Policy Center: Capital Gains Tax Credit Valuing Wealth Over Work in Montana
March 19, 2017
In 2003, the Montana Legislature passed a capital gains tax credit that benefits a very narrow portion of our population at the great expense of our collective ability to adequately invest in public programs, from education to health care. Currently, Montana is one of just nine states offering a significant tax break for capital gains […]
Montana Budget & Policy Center: Montana Corporate Income Taxes
December 31, 2016
For generations, our tax dollars have served as shared investments in the programs and services that make our state a great place to live, work, and play. Tax dollars enable Montanans to work together to achieve things which we could not do alone - educate our children, build and maintain infrastructure, provide public safety through police and fire protection, keep our air and water clean, and pave the way to a stronger and more inclusive economy.
Montana Budget & Policy Center: Introduction to Who Pays Montana’s Taxes
November 30, 2016
Chart 1 outlines the three main state and local taxes – income, property, and sales/excise—and how the cost of these taxes is distributed among taxpayers. Both property and sales/excise taxes are regressive. Conversely, income taxes are progressive.
Montana Budget & Policy Center: Montana’s Individiual Income Tax
November 30, 2016
Prior to the tax cuts implemented in 2003, Montana had ten different income brackets, with each higher income bracket paying a slightly larger share of their income in taxes (Appendix A). In this old structure, the lowest income bracket paid 2% of their income in taxes, while the highest bracket (applying to incomes over $102,000, […]
Montana Budget & Policy Center: A Montana Earned Income Tax Credit (EITC)
September 30, 2016
Approximately 83,000 Montanans received the federal EITC in 2014. If Montana established a state EITC, these same working families would receive additional support through boosted wages and would be better able to meet their family’s needs. Additionally, low-income families receiving a state EITC would face a reduced tax burden.
Montana Budget & Policy Center: The Montana We Could Be
July 30, 2016
In Montana, the higher a household’s income, the lower share of that income it tends to pay in state and local taxes [see Chart 1]. One reason for this is that people who make less money end up paying a larger share of their income in local sales taxes and property taxes.
Montana Budget & Policy Center: Investing in Montana’s Working Families
February 2, 2015
In Montana, thousands of families struggle to make ends meet. One of the most promising policy opportunities to support working families and boost our economy is the enactment of a state Earned Income Tax Credit (EITC). The Great Recession and other economic trends made it harder for Montana’s families to live above the poverty line. […]
Montana Budget & Policy Center: Montana’s Tax System – How Do We Stack Up?
April 15, 2014
On Tax Day, we all spend some extra time thinking about how much we pay in taxes. Even more so for low- and middle-income families, who contribute a larger share of their income than high income people do. The difference is significant – Montana low-income families pay 6.4% of their income in taxes, compared to […]
Montana Budget & Policy Center: Capital Gains Tax Credit – Valuing Wealth Over Work in Montana
May 16, 2013
In 2003, the Montana Legislature passed a capital gains tax credit that benefits a very narrow portion of our population at the great expense of our collective ability to adequately invest in public programs, from education to health care. Currently, Montana is one of just nine states offering a significant tax break for capital gains […]
Montana Budget and Policy Center: Restoring Revenue and Fairness. HB395: New Top Marginal Rate for Taxable Income
January 14, 2013
The 61st Legislature is faced with the unenviable challenge of balancing the budget during a time of economic downturn and revenue uncertainty. Introducing a new top marginal tax rate for households with incomes over $250,000 will offer fiscal security for Montana while restoring some of the progressivity of the Montana income tax system. It will […]
Montana Budget and Policy Center: Ending Preferential Treatment of Capital Gains Income
January 14, 2013
The 61st Legislature is faced with the unenviable challenge of balancing the budget during a time of economic downturn and revenue uncertainty. Ending preferential treatment for capital gains income will offer fiscal security for Montana while restoring some of the progressivity of the Montana income tax system. Furthermore, extensive research shows that there is little […]
Montana Budget & Policy Center: Capital Gains Tax Reform Will Strengthen Montana
January 14, 2013
As a result of the Great Recession state revenues in Montana, like all other states, are plummeting, and important public services like health care and education are facing cuts. The governor has already cut over $40 million from state programs, and the nonpartisan Legislative Fiscal Division estimates that the next legislature may face a $370 […]
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