The Blog at MSPC

If states want tax relief that does more than provide temporary relief—if we want a tax cut that changes the state's long-term economic trajectory—then reducing the individual income tax should be near the top of the list. And Montana is front and center in the current conversation.

The vivid contrast between Seattle and Bellevue is a lesson every municipality in the country can learn from. Imposing high local taxes and onerous regulations incentivizes individuals and businesses to look to neighboring jurisdictions for relief.

Congratulations, everyone. The politicians saved the grocery stores. Except, of course, for the ones that are closing.

Idaho holds a distinction that should concern policymakers in Boise: Idaho has the highest flat individual income tax rate in the country.

A new study from consumer spending site WalletHub recently ranked the “Best States to Live” across the country, with Idaho grabbing the top spot in the study. The other Mountain States scored relatively well, with Wyoming coming in sixth and Montana 14th, though Washington state ranked in the bottom half at 33rd.

And a new ranking of business formation across the 50 states provides a revealing look at just how differently entrepreneurship is unfolding across America.

It's no coincidence that the top states in the country for growing hourly wages embrace limited regulations, prioritize tax relief, and favor a small government approach. Combining growing wages, affordable purchasing power, and a favorable business climate means higher productivity and economic growth.

One of the reasons socialism continues to appeal to new generations is that it begins with goals that almost everyone shares.

Maintaining a competitive economy requires constant attention to workforce development, business investment, tax and regulatory restraint, and the policies that encourage innovation and opportunity.

Idaho is being rewarded for its prudent budget policies. The Evergreen State is facing a business climate in distress from self-inflicted wounds. Unless Washington changes course, expect more of its citizens and businesses to head east to enjoy the benefits of the Gem State’s fiscal discipline.

Every year, millions of Americans make one of the biggest decisions of their lives: whether to stay where they are or move somewhere they believe offers greater opportunity. They aren’t just choosing a new home. They’re choosing a different set of public policies.

Montana policymakers have pursued one of the nation's most ambitious state-level housing reform agendas. Even with those efforts, it will take time to mitigate the growing tension between economic growth and housing attainability.

Over the past decade, individual income tax collections increased from $1.06 billion in Fiscal Year 2014 to $2.24 billion in Fiscal Year 2024. That's an increase of more than 111 percent.

It is right that Wyoming legislators chose to make it easier for many of those who power Wyoming’s economy in construction, transportation, health care and other fields to more easily earn a well-paid living with a safety net without having to give up the flexibility of contract work.

The hits keep coming for Washington state’s poor fiscal management. The latest comes in the form of the recent credit ratings. At the same time, Idaho and Montana continue to receive high praise on credit reports for their fiscally conservative budget practices.

Montana could continue to improve its economic outlook by building on its impressive income tax reforms by moving to a flat income tax rate.

To be clear, not every community will attract a grocery store overnight, even with fewer barriers. There are places where the economics are genuinely difficult. But that makes it all the more important not to sabotage the projects that are viable.

Washington continues to rack up poor rankings as one of the most unaffordable states in the country. A recent report shows the Evergreen State as the 5th most expensive state in the United States.

Local governments across the country are engaging in a slow-motion seizure of private property rights—but in Idaho, lawmakers just put a stop to it.

Despite a massive hydroelectric advantage, Washington will continue to become more expensive due to its energy tax and regulatory policies, while Idaho, Montana, and Wyoming are likely to see the cost curve bend with their support for bringing more nuclear power online.