“Lehman Brothers File Bankruptcy.” “Feds Take Over Fannie Mae and Freddie Mac!” “Bank of America Buys Merrill Lynch.” We all read the headlines. The news is not good. Unless there are dramatic changes these financial problems are likely to trickle down to Montana. If so, during this next legislative session, our governor and our legislature will be faced with the question of "how can we generate more revenue to pay for the budget increases set in motion during the last session?" Far too many will want the simple solution. They will want to increase taxes. It is the wrong answer. That's where the Taxpayer Protection Pledge comes in.
Since the housing and banking collapse, the pledge has taken on increased importance. Although the state Legislative Fiscal Division earlier projected a $1 billion general-fund budget surplus few view that amount seriously because the projection was determined prior to the global and national meltdown. A sluggish national economy will burden Montana, impact its revenue and put more pressure on legislators to raise taxes to continue funding the rate of government growth.
Just like Montana families are forced to reduce their costs when times are tough, so must our government.
Since 2002, Montanans for Tax Reform has worked to help make Montana the best place for Montana's families and small businesses. Our tax pledge calls on legislators to "oppose and vote against any and all efforts to increase taxes." It would require that they oppose, vote against and not vote for any net increase in tax rates or decreases in deductions, exemptions, or credits unless offset at least dollar for dollar by decreases in other tax rates or by increases in other deductions, exemptions, or credits. It does, however, allow genuine tax reform that is revenue neutral.
Tough economic times will force Montanans to tightening their belts. It should also force our government to tighten up on spending. Protecting the pocketbooks of hard-working Montana families and businesses is a critically important to economic development, job creation.and the financial control of your life.
