Trio of tax bills is going to cost you

The governor expressed concern last week that Republican leaders in the House are stalling action on a trio of tax bills in order to kill them.

We don't know whether that's what the Republicans are doing or not, but we are starting to think perhaps they should - and perhaps Gov. Schweitzer should help them.

After all, the governor promised not to support any tax increases, and the more we look at the three bills in question, the more certain we are that they are ravenous tax increases in sheep's clothing.

Hearings are being held on Senate Bill 520 today and Senate Bills 521 and 513 on Thursday. It almost looks as though these bills were held back as long as possible to avoid public scrutiny, but as we approach the end of the session, let's make sure our legislators are held to the same high standard as when they were elected.

In order to try to shed light on the bills, all of which were sponsored or co-sponsored by Sen. Jim Elliott of Trout Creek, the Inter Lake will study them over the next two days.

Senate Bill 520 is being touted as a property tax rebate, and thus looks like it will be good for everyone. But that is hardly the case.

First of all, the "rebate" goes to property owners and renters alike. That's based on the theory that landlords pass their property taxes on to their renters. Maybe so, but maybe not. We think market forces have a lot more to do with rental prices, and besides - if legislators really want to help renters, they should lower property taxes across the board to help put home ownership in reach of lower middle-income families.

Remember, it's the property owners who pay the taxes, and they are the ones who need the help.

Calling SB 520 a property tax rebate doesn't make it one. What it really turns out to be - when you read the fine print - is an income-tax increase and a capital-gains tax increase. You didn't think the $100 million being divvied up across the state in $135 chunks was coming from the surplus, did you? No, it's coming from your fellow Montanans, about half of which will see their income taxes rise thanks to SB 520.

The Inter Lake supports property tax reduction, but that's not what you get in 520. We think of it more as vote buying. After all, virtually every adult citizen in Montana is going to be getting that happy check for $135, and they may remember it fondly on election day, but few of them are going to be able to decipher where it was exactly in their state income taxes that the government took back its pound of flesh. It's all done with smoke and mirrors, folks. Just don't look too closely, or it hurts.

(Coming tomorrow: An analysis of SB 521 and SB 513.)