Restoring Revenue and Fairness: A New Top Marginal Rate for Taxable Income
House Bill 395 (2009) attempted to restore some of the state revenue lost as a result of SB 407 (2003). SB 407 provided a variety of tax cuts to Montanans, but the highest-income Montanans have received most of the benefits from those cuts, and the costs to the state were far higher than anticipated. HB 395 would restore some of the revenue lost as a result of SB 407 by creating a new top tax bracket on households earning more than $250,000 per year. HB 395 would also restore some of the progressivity of the Montana income tax system and affect less than 1% of all Montanans.