Montana Budget & Policy Center: Capital Gains Tax Credit Valuing Wealth Over Work in Montana
ITEP Work in ActionIn 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 income.1 Since 2003, this tax break has proven to be unaffordable, unfair to working-class Montanans, and has harmed the economy. In fact, the tax credit costs the state tens of millions of dollars in state revenue each year. This reduction in revenue jeopardizes our collective ability to invest in schools, families, and communities all across this state. It’s time to take a hard look at the usefulness of this costly tax break that predominantly benefits the wealthiest Montanans.