Senator Art Wittich of Bozeman wants to provide permanent income tax reduction, but he says the best he can do is a one-time relief bill.
Budget Director Dan Villa says the Governor’s office doesn’t support the bill because of the unequal distribution of income tax relief between low income earners and those with high incomes.
“You have over 50% of all tax relief as proposed under this bill going to the top 10% of income earners. While the bottom 10% receive an aggregate $127.00. That is not an equitable form of tax relief.”
In reply, Wittich says he did offer a permanent income tax relief bill, but it died in committee. He calls Senate Bill 394 his alternative.
Wittich says he wished he offered his tax bills earlier in the session when the state was more flush with cash. He says projections now show that surplus has dwindled considerably.
As Yellowstone Public Radio News Director Jackie Yamanaka reports, the House Taxation hearing on Senate Bill 394 was a philosophical discussion on how to dole out tax relief.