January 14, 2013

Montana Budget and Policy Center: Ending Preferential Treatment of Capital Gains Income

ITEP Work in Action

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 connection between lower taxes on capital gains and higher economic growth, either in the short run or the long run.

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