Let’s learn from failed experiments in Kansas and Wisconsin
Clean air, sparkling water, and wide open spaces just aren’t good enough for Gov. Greg Gianforte, so he intends to fix that by attracting more people, more business, industries, and wealthy entrepreneurs like himself. He intends to accomplish this change through a series of bills that are now winding their way through the Legislature.
These bills have impersonal number designations like SB 133, SB 159, and SB 181 and 182. They have catchy short titles like “Personal Income Tax Relief” and “Corporate Tax Modernization Act”. And, they are all part of Gianforte’s plan to provide tax breaks for corporations and wealthy individuals, on the theory that a more favorable tax structure will bring more businesses and entrepreneurs to the state, and that revenue from the businesses, with their “good-paying jobs,” will more than make up for the lost revenue from those tax breaks. That all sounds fine, if it works, but recent history shows us that it does not.
About a decade ago, this same plan was carried out by Gov. Scott Walker of Wisconsin and Gov. Sam Brownback of Kansas. They cut taxes for corporations and wealthy individuals, and waited for the revenue to roll in. But the hoped-for economic growth and high wages didn’t come, and both states teetered close to bankruptcy. To make up for lost revenue, funding was drastically cut to public education, mental health and other social programs, and infrastructure---the very infrastructure that businesses need. Kansas’ case is described in a recent op ed (Feb. 28) written by a former Republican member of the Kansas House of Representatives
Three of Gianforte’s bills had a hearing before the Senate Taxation Committee on Feb. 11. State Budget Director, Kurt Alme and Senator Greg Hertz, two of Gianforte’s best yes men, were present and echoing the same empty promises that Kansas and Wisconsin legislators heard 10 and 12 years ago. With Republicans controlling the legislature, these bills will surely be delivered to Mr. Gianforte, who is sitting in the governor’s mansion anxiously a
waiting their arrival. To Gianforte, Montana is a trophy to hang on his wall like a six-point bull elk. He wants to grow Montana to satisfy his penchant for boosterism and development, but not necessarily to help Montanans. The failed experiments in Kansas and Wisconsin actually hurt low and moderate wage earners the most. Why would we want that for Montana?
So please, contact the governor. Tell him that this isn’t Wisconsin or Kansas, and we like it that way.
Robert Horne, Jr., Whitefish