Major income tax cut heads to Montana governor’s desk

Apnews - Apr 25th, 2025

A significant income tax cut bill, House Bill 337, has passed the Montana Legislature and is now awaiting approval from Republican Governor Greg Gianforte. Sponsored by House Speaker Brandon Ler, the bill proposes to reduce the state's top-bracket tax rate over the next few years while adjusting the lower-bracket rate for higher incomes. This legislation, which is expected to lower state revenues by $267 million annually by 2028, received strong support from Republicans and opposition from Democrats. Proponents argue that the tax cuts will benefit all income levels, while critics caution it may primarily favor high-income earners and jeopardize funding for public services.

The context of this legislative move is grounded in Governor Gianforte's agenda to reduce income taxes, aiming to make Montana a more attractive place for businesses and entrepreneurs. However, the bill's passage highlights ongoing debates regarding tax equity and fiscal responsibility. While the bill includes an expansion of the state Earned Income Tax Credit to support low-income families, the bulk of the savings are anticipated to benefit the wealthier taxpayers. The bill diverges slightly from Gianforte's earlier proposal and comes amid stalled efforts on other major tax bills. With income taxes being the primary revenue source for Montana, the decision carries significant implications for the state's fiscal health and public service funding in the coming years.

Democrats Republicans Tax Policy Greg Gianforte Montana Legislature House Bill 337 Brandon Ler Income Tax Cut

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RATING

8.0

Fair Story

Consider it well-founded

The article provides a thorough and largely accurate account of the legislative process surrounding Montana's House Bill 337. It effectively presents the bill's provisions, fiscal implications, and the partisan debate it has sparked, making it a valuable resource for readers interested in state tax policy. The article's strengths lie in its detailed reporting, balanced perspective, and relevance to public interest. However, it could improve by enhancing transparency with more direct source links and addressing readability issues caused by unrelated content. Overall, the article serves as a solid piece of journalism that informs and engages its audience on a significant policy issue.

Accuracy

The article is highly accurate, providing detailed information on the legislative process and the specifics of House Bill 337. It correctly states that the bill passed the Montana Legislature and is headed to the governor. The article's financial impact estimation of $267 million in reduced state revenue by 2028 aligns with fiscal analyses. The description of the bill's provisions, such as the phased reduction in the top income tax rate and extension of lower rates to higher incomes, is precise and supported by legislative records. However, the article could improve by providing more direct citations or links to the fiscal analysis or legislative documents used.

Balance

The article presents a balanced view by including arguments from both supporters and opponents of the bill. It features quotes from Republican Speaker Brandon Ler advocating for the tax cuts and Democratic Senate Minority Leader Pat Flowers expressing concerns about the bill's impact on lower-income Montanans. The article also highlights the perspective of the Montana Budget and Policy Center, which opposes the bill, providing a comprehensive view of the debate. However, it could include more detailed responses from neutral economic analysts to enhance the balance.

Clarity

The article is well-structured and uses clear, concise language to convey complex legislative and fiscal information. It logically presents the sequence of events and the implications of the bill, making it accessible to readers with varying levels of familiarity with Montana politics. However, the inclusion of unrelated content, such as the freestar advertisement code, disrupts the flow and detracts from the overall clarity.

Source quality

The article sources its information from credible entities such as the Montana Legislature, the Montana Budget and Policy Center, and statements from key political figures. The Montana Free Press, known for its in-depth reporting on state politics, is a reliable source. While the article provides a good range of sources, it could benefit from more diverse perspectives, such as independent economists or policy analysts, to corroborate the fiscal implications and distributional effects of the tax cuts.

Transparency

The article is transparent in its reporting, clearly outlining the legislative process and the bill's specifics. It discloses the partisan nature of the vote and the potential impact on state revenues and public services. However, the article could improve transparency by providing direct access to the fiscal analysis reports and legislative documents referenced. Additionally, it could clarify any potential biases or affiliations of the quoted sources, such as the Montana Budget and Policy Center.