On Monday, Gov. Greg Gianforte (R-MT), alongside Rep. Brandon Ler (R-MT) held a press briefing to announce the largest income tax cut in state history.
00:00Thank you for joining us. It's great to be here on the steps of the People's House to celebrate another truly historic day in Montana.
00:14As leaders elected to serve Montanans who sent us here to Helena, I know we all want the same thing.
00:22To open the doors a greater opportunity so more Montanans can thrive, prosper, and achieve the American dream.
00:31Today we're doing just that. Today we're delivering for Montanans what they sent us here for.
00:38Today we're delivering the largest tax cut in Montana's history again.
00:45As I meet with Montanans across our great state, I hear from them loud and clear, taxes are too high.
00:53That's why we're cutting income taxes once again this legislative session.
00:58We're putting money back in Montanans' pockets through permanent, long-term tax reductions.
01:05And we couldn't have done it without the legislators that are here with me today.
01:10Thank you for your commitment to our shared priorities and for your dedication to getting this bill across the finish line.
01:27Over the course of the last four years, Montana families saw inflation take a big bite out of their budgets.
01:33According to a 2024 report, prices have increased nearly 20% from 2021 to 2024.
01:43That's about $17,000 per year or $1,400 per month.
01:50That's money that would otherwise have been used to put food on the table, gas in the car, or put it into savings for a family looking to buy their first home.
02:01In light of this reality, we knew we had to act.
02:06Montanans are counting on us to act.
02:09And today we are.
02:11All of those who have supported this measure are motivated by this fundamental principle.
02:16Your tax dollars belong to you, not to the government.
02:21This historic tax cut will not only help hardworking families and small business owners keep more of what they earn,
02:29but it will also help create more good paying jobs, grow our economy, and help more Montanans achieve the American dream.
02:38Today, I'm excited to sign this tax relief measure into law.
02:43Because the reality is, even after our historic tax cuts in 2021 and 2023, we still have the highest income tax rate in the region and one of the highest in the nation.
03:00It's a drag on our economy, a wet blanket on job creation, and a burden on Montana families.
03:08Across the nation, Republican states are cutting their income tax rates.
03:14To stay competitive, we must do the same.
03:17We must permanently cut the tax rate most Montanans pay and encourage Montanans to get back into the workforce.
03:26And today we're delivering the largest tax cut in state history, returning $756 million to the pocketbooks of hardworking Montanans.
03:39With House Bill 337, Montana taxpayers at every income level will see a permanent tax reduction.
03:48Cutting the tax rate most Montanans pay from 5.9% to 5.65% in 2026, and then further reducing it to 5.4% in 2027.
04:06This will provide long-term tax relief and certainty to middle class families, small business owners, and hardworking Montanans.
04:16It raises the income bracket so more taxpayers will qualify for the lower rate as well.
04:23And it expands the earned income tax credit to help lower income working Montanans incentivize work and build a stronger workforce.
04:34It also gets us much, much closer to a flat tax, which should be our goal.
04:41I want to take a minute to thank House Speaker Brandon Lear, who sponsored the bill to cut income taxes for Montanans at every income level.
04:51Speaker, thank you for your leadership.
04:53Do you want to make a few remarks?
04:55Thank you, Governor Gianforte, and good afternoon to everybody.
05:03Today is a historic day for the people of Montana.
05:06Standing here on the steps of the Capitol, I'm proud to say we are delivering on the largest income tax cut in the history of the state.
05:12House Bill 337 isn't just about lowering tax rates.
05:15It's about raising up working families, and it's about making Montana a place where hard work is rewarded.
05:21This legislation is the product of months of work, collaboration, and putting in many hours,
05:28and a firm commitment to the conservative principles that we all stand for.
05:32We said this from the beginning that we wanted to build a tax system that was fair, flatter, and more focused on growth, and that's what we've done.
05:39House Bill 337 gradually lowers the top rate from 5.9 to 5.4.
05:45That change alone puts real dollars back into the hands of hardworking Montanans.
05:50But the real power of this bill comes from how we've restructured the entire system.
05:54We've widened the entire income tax bracket.
05:57We've nearly tripled the threshold at which the higher tax rate kicks in to joint filers,
06:03and we've doubled the earned income tax credit to provide meaningful relief for Montanans' lowest income workers.
06:09That's a relief for every Montanan.
06:12This is a reform that reaches everyone.
06:14We didn't get here overnight.
06:16This bill is a result of careful policy work and a clear vision that is shared between,
06:21that is a shared belief that Montanans deserve a tax code that works for them, not against them.
06:26Let's be clear, this is not a one-time cut.
06:29It's a long-term investment in Montana's economy and Montana families.
06:33We are changing the trajectory of our state.
06:35We are sending a clear message to our citizens, our job creators, and our future generations.
06:41Montana is open for business, Montana believes in hard work, and Montana takes care of its own.
06:47To every legislator who supported this effort, thank you.
06:50To Governor Gianforte and his leadership and partnership, thank you.
06:53And most of all, to the people of Montana, thank you for trusting us to do what is right,
06:57and we are honored to serve you.
07:00Thank you, Speaker.
07:04Folks, there's a lot to be excited about.
07:07But let's be clear, our work is not done.
07:10Montanans sent us to Helena to serve them, deliver on their priorities, and get the job done.
07:17That's what I'm focused on every day, as I know the legislators behind me as well.
07:21For the sake of hardworking Montana families, we must check off the remaining items on Montana's to-do list.
07:29There's still time on the clock.
07:31Montanans are counting on us.
07:33So let's get it done.
07:35In my State of the State, I outlined a vision for these next four years.
07:39I said our focus will remain on delivering on Montana's priorities.
07:44I've heard loud and clear from Montanans in every corner of our state, income tax relief is a top priority.
07:52And I'm incredibly proud of each person up here for helping deliver that needed relief.
07:58Working with the legislature, our pro-jobs, pro-family policies are getting results for Montanans.
08:06With record business creation, record job creation, and a record number of people working in Montana.
08:14Wages, wage growth outpacing inflation.
08:20That's right. Wages outpacing inflation.
08:24We're opening the doors of greater opportunities for all Montanans, make it easier to raise a family, own a home,
08:30to start a job creating business, and to retire comfortably, and to realize the American dream.
08:38This is truly a historic day for Montanans, Montana families, and Montana taxpayers.
08:45It was an honor to be able to celebrate with you all.
08:48Thanks for being here, and God bless Montana.
08:51And now, for the moment you've all been waiting for, Speaker, let's sign the bill.
