Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Income Tax topic
No spam. Unsubscribe anytime.
Committee hears divergent views on SB 203, a proposal to change income tax brackets for middle-income earners
Summary
Senate Bill 203, sponsored by Senator Mike Yakawich, would adjust income-tax brackets with sponsors calling it a middle-class tax cut and opponents warning of large, sustained revenue loss and potential harm to public services; the committee later tabled the bill after executive action.
Senate Bill 203, introduced by Senator Mike Yakawich, would change Montana’s income-tax brackets and provide what the sponsor described as a ‘‘middle class’’ tax cut targeting married households with incomes up to $200,000. Yakawich summarized the plan as simplifying brackets with rates focused on the 60th–90th percentile of earners.
Opponents at the hearing — including Rose Bender of the Montana Budget and Policy Center and Amanda Curtis of the Montana Federation of Public Employees — urged the committee to reject the bill. Bender warned the measure ‘‘will be a sustained large loss of income tax revenue’’ and argued that, because Montana’s tax system is regressive, the wealthy would receive far larger average tax savings than median households (she cited an estimate that the top 1% would receive over $2,000 while those near the median would receive about $131).
Department of Revenue staff and the fiscal division answered committee questions on forecasts and revenue volatility. Fiscal witnesses said current revenue estimates (HJ 2 baseline) inform the committee’s balance sheet and that out-year projections can change rapidly; Sam Schafer described forecast sensitivity given recent month-to-month revisions in national and state outlooks.
During the executive-action session, members moved for a do-pass recommendation on SB 203. A roll-call vote resulted in a 10-yes, 12-no record and the chair announced the bill would be tabled (no further committee approval to advance).
