Republicans in the Legislature want nothing to do with Gov. Brian Schweitzer's proposals for closing tax loopholes advantageous to out-of-state individuals and businesses. That's too bad. It would be one thing if Republicans asserted their own ideas for achieving greater tax fairness - or if they could convincingly argue that out-of-staters are paying their fair share. But it's disappointing to have them simply oppose the governor's proposals on dubious grounds that they add to the bureaucracy in the Department of Revenue had their own.
If there's one issue we might expect the Legislature - even this year's polarized Legislature - to approach with some degree of bipartisanship, it ought to be tax fairness.
Rep. Bob Lake, R-Hamilton, chairman of the House Taxation Committee, said in the Billings Gazette recently that Republicans “fully support DOR (Department of Revenue) aggressively bringing Š to justice” tax cheats. What the Republicans don't want, however, is an “increase in the DOR bureaucracy.” He also questions the need to collect more taxes at a time of record tax surpluses. Instead of collecting taxes on out-of-staters, the chairman suggests the Schweitzer administration ought to be “looking at ways to simplify the tax code and lower tax burdens on everyone.”
Simplifying the tax code is a great idea. We're all for it. But don't just use that as an excuse for inaction - do it. Sit down with the governor and see if you can't agree on simplification measures. At least offer viable proposals to make the system simpler. In the absence of simplicity, we'll take fairness. Fair taxes - with everyone paying his or her rightful share - is the key to lower taxes.
Republicans may look at the governor's tax-collection measures and see a $60 million increase in revenues. We see the potential to reduce by
$60 million the taxes now being paid by Montanans. The short-term surplus in state tax revenues hardly is grounds to allow nonresidents to continue shifting tax burdens onto Montanans.
Here's our suggestion for breaking this partisan logjam: Enact legislation closing tax loopholes not available to Montanans and improve collection of taxes owed by out-of-staters. At the same time, commit to reducing tax rates overall in direct proportion to the increased revenue.
This would be a win-win solution for everyone - the kind of solution legislators were elected to find.
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