11/05/2009, Helena IR,"Study: State Tax System Unfair to Working Poor."

Montana taxes the incomes of the working poor more harshly than any state, a report Wednesday said.

Working couples with two children in Montana start owing income taxes at a lower income than any other state, a report issued by the Center on Budget and Policy Priorities, a left-leaning group in Washington, D.C.

The report said Montana is one of only six states to impose income taxes on people living in severe poverty and one of just seven states that taxes people earning the minimum wage, said Tara Veazey, director of the Montana Budget and Policy Center, which has ties to the national center.

"Montana's income tax system has the unfortunate result of pushing hard-working families living in poverty further into poverty," Veazey said.