Gianforte and MT GOP Tax Plan Puts Montana in the Red
As GOP legislators highlight how Montana has experienced the highest revenues in state history while securing responsible tax cuts for small businesses under Steve Bullock, here is a reminder of what New Jersey multimillionaire Greg Gianforte's tax plan would do to our budget.
Gianforte's 406 tax plan does the following:
Tax restructure to give multimillionaires like himself a tax break.
COST: $125 million
Repeal of the Business Equipment Tax to give tax breaks to out-of-state corporations.
COST: $81 million
TOTAL SPENDING: $206 million
Gianforte would reduce the size of Montana's rainy day fund:
"Gianforte has called for the state to reduce the size of its informal savings account by at least a third from Bullock's $300 million minimum"
Not only would this poor fiscal planning end Montana's tenure as the most fiscally prudent state in the nation, it would jeopardize our state's high credit ratings:
- Moody's - "The Aa1 rating reflects the state's trend of conservative fiscal management, low debt levels, and an economy that is growing and diversifying beyond its traditional concentrations in the natural resource and government sectors."
- Fitch - "The state benefits from very high trust fund balances and a practice of carrying solid ending budgetary fund balances, helping to offset the cyclicality interest in its resource-based economy and tax revenue system."
- Standard & Poor - "The 'AA' GO rating reflects our view of the state's: Strong available general fund balances on a historical basis, which provide a substantial buffer should there be any unanticipated softness in the state's key revenue streams"