Montana governor vetoes income tax cut

HELENA (AP) – A bill that would cut income taxes across the board has met its demise.

Democratic Gov. Steve Bullock vetoed House Bill 166 on Friday. The Republican proposal, which would have decreased every state income tax bracket by 0.2 percent, was passed by the Legislature before the state revenue estimate was finalized.

The governor has 10 days to sign or veto a bill or it becomes law without his signature.

Bullock said in a statement that the measure would account for a large portion of the $945 million in new spending and tax cuts that Republicans have proposed this session and that would jeopardize Montana's strong economy.

He called the bill fiscally irresponsible and noted that recent experiments cutting state revenue in Wisconsin, New Jersey and Louisiana have resulted in billion-dollar deficits.

Montana is currently ranked by The Tax Foundation as the sixth best tax climate for business in the nation.

Bullock also vetoed three tax cuts last legislative session.