Democrats Worked Hard for Taxpayers

Guest Editorial in the Bitterroot Star 6-27-07

by Phyllis Bookbinder, Corvallis

Democrats in the 2007 Legislature rolled up their sleeves and made real progress to improve the lives of ordinary Montana families—from help with soaring property taxes on the middle class to investing in public school classrooms and lowering the cost of college, to addressing a health care crisis that leaves too many Montana families vulnerable.

They provided tax cuts, made investments in Montana priorities, held the line on spending, and established a Rainy Day fund for the state. In fact, they cut more taxes for more Montanans than at any time in history. Democrats gave permanent property tax relief, created better-paying jobs, provided quality, affordable healthcare and made education a top priority. And we delivered a sustainable budget with a strong ending fund balance -- without raising taxes one dime.

Ordinary Montana homeowners deserve a meaningful tax rebate, and that’s what Democrats gave them. After all, ordinary homeowners saw their property tax bills skyrocket more than 50% on average during twelve years of Republican neglect and failure, while multi-national corporations received tax giveaways repeatedly. And resident homeowners will spend the rebate on Main Street to help our economy grow.

As we promised, Democrats passed a $400 property tax rebate for Montana homeowners (HB 9)—and they could have done a whole lot more. Here’s what happened:

Multi-national corporations have had a good ride in Montana these past 20 years, writing their own legislation (electrical deregulation), lowering their taxes (and raising ours), and enjoying virtual immunity from scrutiny of their tax returns thanks to an understaffed Department of Revenue.  

Ninety-seven percent of Montanans pay their taxes, but this is not true for corporations and individuals who live outside of Montana. Ordinary hard-working citizens should expect their legislators to help the state collect taxes owed, because when that money goes uncollected either the rest of us pay or the needed services are not provided. Seems simple, right? Wrong. Some legislators were unwilling to support even the most basic and fair efforts to collect from tax cheats. Experts estimate that with the right tools, Montana could collect an additional $50 million to $60 million in the next two years. Yet Republicans in the legislature voted to let these tax evaders off the hook—instead leaving Montanans to take care of these unpaid bills. Republicans opposed common sense plans such as:

• Withholding appropriate taxes at the point of transaction before the dollars leave the state.
• Giving the Department of Revenue enough staff to work with courts in other states to collect from tax cheats who ignore collection letters and phone calls from the Montana DOR.
• Closing loopholes that allow abusive tax shelters and tax avoidance by international corporations.

If you were wondering why there wasn't permanent property tax reduction for homeowners this session, it is because it was part and parcel of the efforts to achieve tax fairness stalled or defeated by every Republican on the House Taxation Committee including the Chair, Bob Lake (R-Hamilton). Remember these votes and hold your legislature accountable in the next election.