11/19/2009, Helena IR, "Study Says State Taxes Poor More"

Montana low-and middle-income families pay a larger share of their income in state and local taxes, on average, than do the state’s richest households, a new national study concludes.

The Institute on Taxation and Economic Policy, Washington, D.C., research group, analyzed tax structures of the 50 states in a study released this week.

“No one would ever design an income tax with lower tax rates for the best-off taxpayers,” said Matthew Gardner, the institute’s executive director. “But that is exactly what Montana’s tax system overall does….In other words, Montana has an unfair, regressive tax system.” ....

Tara Veazey, who heads the Montana Budget and Policy Center, said the study provides good information for legislators. She said the center hopes as lawmakers consider revamping Montana’s taxes, “they do so in a way that both ensures adequate revenue for important state and local functions and also reduces the disproportionate burden placed on Montana’s low- and middle-income families.”