Thursday, July 21, 2016


#MTGov Daily Rundown: Why is Bullock Flip Flopping and Following on Tax Relief?

"The Business Equipment Tax is a wet blanket on business investment in Montana." -Greg Gianforte



A pattern has emerged in the Montana governors race where Greg Gianforte takes the lead on an issue and Governor Bullock follows. This has now occurred on the issues of high tech, forest management, and now the Business Equipment Tax.

 
Bullock laid out a plan this week that he claims will boost small businesses in Montana. Part of his proposal was further reducing the state's Business Equipment Tax.

"Bullock says one of his proposals will cut the taxes for new and expanding businesses. So what this can provide is a 75 percent reduction in the business equipment tax for the first five years. The saving achieved through that proposal if you’re an on-the-ground business will allow businesses to create more jobs, ultimately create higher wages, put more Montanans to work all across the state." -Montana Public Radio, 7/21/2016


Earlier this year, as part of his 406 Tax Plan, Greg Gianforte proposed eliminating the Business Equipment Tax altogether, calling it a "wet blanket on investment."

"The proposal, '406 Tax Relief,' was a three-tiered plan that would eliminate the business equipment tax in four years, have zero increase in overall state spending and lower income taxes for all, with a maximum tax rate of 6 percent, Gianforte said at a news conference at Mark’s Lumber in Clancy, which coincided with the April 18 income tax filing deadline."

'First, we know that Montanans have been overtaxed by hundreds of millions of dollars,' Gianforte said as several past and present Republican lawmakers stood nearby. “Second, we know that lower taxes will leave more money in Montanans’ pockets. And third, we know that lower taxes will attract and retain Montana employers.'” -Great Falls Tribune, 7/21/2016


At that point, Governor Bullock's surrogates slammed Gianforte over his plan to eliminate the tax claiming that it would cost the state millions of dollars a year and only benefit a handful of big, out-of-state businesses.

"Eliminating the Business Equipment Tax would largely benefit multi-million out-of-state corporations. Steve Bullock already eliminated the Business Equipment Tax for thousands of Montana small and medium sized businesses.

Gianforte's plan does nothing to help Montana's small businesses and 
according to the Department of Revenue "could trigger consequences in the budgets of not only the state, but for schools, fire districts, and cities across Montana." -Montana Democratic Party


During his nearly four years as governor, Bullock has also vetoed multiple bills designed to give Montanans tax relief, including 3 in the 2015 session alone.

"Three Republican tax relief bills have died at the pen of Montana's Democratic governor this year.

The state House and Senate GOP caucuses touted tax cuts as a high priority for the 2015 session, but every major tax initiative that was passed out of the Republican-controlled Legislature has been vetoed by Gov. Steve Bullock." -Associated Press, 5/7/2015

So what has changed? Why is Governor Bullock once again following Gianforte's lead on an issue?

Earlier this week, Bullock signed a "Good Neighbor Authority" Agreement with the U.S. Forest Service after Gianforte spent 3 weeks calling on the governor to do just that. Back in October, Gianforte called on Governor Bullock to release the full $5 million of hazardous fuel reduction funds to stimulate more timber projects. Bullock was also spurred to action by Gianforte on that issue, as well.



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