Senator proposes raising top-bracket thresholds to lower taxes for middle earners; opponents warn of large revenue loss

Sen. Mike Yackawich, a Billings Republican, told the Senate Taxation Committee on the morning of the hearing that Senate Bill 203 would raise the Montana taxable‑income thresholds that move taxpayers into higher rates, shifting more income into the 4.7 percent bracket.

"Senate Bill 2203 ... is an act revising income tax brackets to lower income taxes," Sen. Yackawich said as he opened the hearing, explaining the bill would raise the starting point for the top personal income tax rate from $21,100 to $100,000 for single filers, with adjusted multiples for joint and head‑of‑household filers.

The bill, which Yackawich repeatedly framed as targeting middle‑income households he called "millennials," would broaden the share of taxpayers taxed primarily at 4.7 percent. Yackawich offered illustrative savings: a married couple with $150,000 federal adjusted gross income could save about $933 under his calculations, which he said equates to about a 14 percent reduction in state income tax liability for that scenario.

Why it matters

Proponents said the bill returns surplus…