Tax cuts are working in Montana; the Legislature shouldn’t stop now

State Rundown 4/24: States Push Tax Cuts Despite Fiscal Uncertainty

While some states are preparing for uncertainty – slowing revenue growth, chaos from unpredictable tariffs, cuts to federal programs, etc. – others continue to move forward with plans for deep tax cuts.   For instance, Georgia Gov. Brian Kemp signed legislation accelerating the cut to the personal income tax rate, which is currently phasing down. A tax cut package in Montana that will lower the state’s top income tax rate by 0.5 percentage point…

Flat Taxes are Better for State GDP

States that have a flat tax rate have higher GDP growth. Higher tax rates are correlated with decreases in GDP and outcomes on the state and federal level, as often shown from prior research and in my working paper, “Graduated vs. Flat Personal Income Taxes: State Level Estimates on Output”. States that enact flat personal income tax structures tend to have lower rates that incentivize more economic activity. When residents expect to retain more…

Tax cuts are working in Montana; the Legislature shouldn’t stop now

Montana’s efforts to reduce the income tax have and will continue to make it increasingly more competitive among the 50 states.