Senate Bill 292 will reduce tax credits in Montana, on par with federal tax

Everyone around here talks about jobs, jobs, jobs. But jobs are created by the private sector, not government. Government jobs have to be paid for by our taxes; local, state or federal. So, they actually cost us.

Does reducing taxes on people and corporations stimulate economic growth?

In August 1962 President John F. Kennedy said that the tax cuts he requested for corporations and individuals would spur our economy.

President Ronald Reagan said and did the same. Lowering our income taxes and business equipment taxes worked here in Montana in the early 2000s.

What can the Legislature do now?

Our income taxes are the 15th highest out of the 50 states. Of our near neighbors, South Dakota, Wyoming, Washington, and Nevada have no income taxes. North Dakota’s income taxes are half of ours.

Those states all have sales tax. That makes a big difference to people, but not so much for corporations. Corporations look at how the 6.9 percent tax bracket will affect their bottom line.

We have been working on SB 292 (Tutvedt, R-Kalispell) in the Senate Taxation Committee. This bill will reduce the number of tax credits in Montana and make our income tax regulations more like those of the feds.

Still, there are winners and losers and many of the tax credits SB 282 will remove have lots of support, things like interest income for seniors and movie credits.

For our area it’s great to hear that House Bill 140 passed and is on its way to the governor’s desk. Rep. Tom Berry’s (R-Roundup) bill adds the chemicals in bath salts and “spice” to the list of dangerous drugs. The Morigeau tragedy was used as an example of these horrible drugs.

Things have changed since my column last week. Rep. Kathleen Williams (D-Bozeman) is carrying LC 0867, now titled HB 629. Rep. Williams was appointed to the compact commission four months ago.

Sen. Verdell Jackson’s (R-Kalispell) SB 265, to extend the compact commission two more years, has passed the Senate and was heard in House Natural Resources last Friday. More than 200 showed up to support this bill.

On another topic, I am still very concerned about the property reappraisal process. I can only find two counties in the entire United States that use oblique imaging to assess property. This technology, looking at your property by airplane, might be the best thing ever for the future, but I am seriously opposed to Montana being the trend setting state.

Here’s why — many years ago the Department of Revenue convinced the Legislature they needed to purchase the latest software called POINTS for the bargain price of $14 million.

It never worked as promised. Each year the price increased until the Legislature pulled the plug at $32 million.

On a personal note, Mike and I were blessed with another granddaughter last week. I get to meet Violet Sky Taylor on Easter weekend.

As always, contact me with questions and comments. Leave me a message at 444-4899 or call my cell at 253-8766. My email address is jannataylor@mon tana.com.

Never forget that I work for you.