Governor Gianforte Proposes Flat Tax to Protect the Future of Montana

Recently, Governor Gianforte joined 560 KMON by phone to cover a variety of topics including the impact of AI data centers on Montana resources and Montana students decorating an ornament for the national Christmas tree.

Also discussed in that conversation was the topic of taxes, and the governor's proposal for big tax changes in 2027.

Governor Gianforte Proposes Flat Tax Rate for Montana

During our conversation, Governor Gianforte brought up lowering taxes and specifically, lowering taxes for all Montanans.

"You know I'm all about lowering taxes and we've lowered income taxes significantly during my term," Governor Gianforte said by phone, "When I came in, most Montanans were paying almost 7% of their income to the state, 6.9%, and we've lowered it."

"Now, most Montanans pay 4.7%. So, we've lowered it in incremental groups. We've gone from seven tax brackets, which was wickedly complex, to just two tax brackets."

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Going from seven to two makes sense on paper but Governor Gianforte has bigger plans for 2027.

"But the next step, and we're going to try to get this done in 2027, is to go to what's called a 'flat tax,'" Gianforte explained.

"That's one tax rate on income; everybody pays the same rate - you make more, you pay more; if you make less, you pay less."

The idea might sound bizarre to some, and Governor Gianforte understands that but wants Montanans to know this isn't a new concept.

"Fifteen other states have done this already so, we're not doing something whacky, we're doing what a lot of other states have done."

Is a Flat Tax Best for Montanans and Their Future?

According to Governor Gianforte, switching to a flat tax rate in 2027 will help protect Montanans from being hit with higher taxes down the road.

"The experts tell us that once you get to a flat tax, it's very hard for future legislators to raise the rate, because you have to raise it on everybody," Governor Gianforte explained, "So, we'd like to get everybody to 4.7%."

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"We're hopeful we can do that and I'm sure working with the legislature; we can get it done in 2027."

What are YOUR thoughts on a flat income tax rate for Montana? Share your thoughts with me HERE.

You can listen to Governor Gianforte's comments about the proposed flat tax below.