The Senate Taxation Committee of the Montana Legislature convened on March 28, 2025, to discuss Senate Bill 323, a proposed tax reform measure aimed at reducing income tax rates and providing financial relief to Montanans. The meeting featured a series of proponents and opponents who presented their views on the bill.

The primary focus of Senate Bill 323 is to lower the top income tax rate from 5.9% to 4.9%, increase the earned income tax credit from 10% to 15%, and reduce the capital gains tax from 4.1% to 3.9%. Proponents argue that these changes are essential for providing financial relief to families facing rising costs due to inflation. They emphasized that keeping more money in the pockets of Montanans would stimulate the economy, allowing individuals to invest in their futures and support local businesses.

Mark Blasdel, representing the governor's office, highlighted the historical context of tax policy discussions in Montana, noting that the proposed changes would simplify the tax code and make Montana more competitive with neighboring states. He expressed gratitude to Senator Kasmayer for sponsoring the bill, which he described as a continuation of efforts to lower tax burdens on hardworking Montanans.

Supporters from various organizations, including Americans for Prosperity Montana and the Montana Taxpayers Association, echoed these sentiments, asserting that the bill would benefit all income brackets and promote economic growth. They argued that reducing taxes would empower individuals and families, allowing them to better manage their finances and contribute to the state's economy.

However, opponents of the bill raised concerns about its potential impact on state revenue and the distribution of tax benefits. Rose Bender, representing Montana Budget, warned that the majority of tax cuts would disproportionately benefit the wealthiest 20% of Montanans, leaving middle-income families with minimal relief. She also cautioned that the bill could lead to significant long-term revenue losses, jeopardizing funding for essential services such as education and healthcare.

Amanda Curtis, president of the Montana Federation of Public Employees, and Margie McDonald, a former legislator, both expressed apprehension about the bill's fiscal implications, arguing that it could result in underfunding critical public services. They urged the committee to consider the long-term consequences of such tax cuts on the state's budget stability.

The meeting concluded with a call for further discussion and consideration of the bill, as committee members weighed the potential benefits against the risks outlined by opponents. The next steps will involve further deliberation on Senate Bill 323 as the committee seeks to balance tax relief with the need for sustainable state funding.