New study: Montana should join the flat tax revolution

Montana has become one of America's economic success stories, but a new study released today by the Mountain States Policy Center argues the Treasure State risks falling behind unless it continues reforming its tax code.

The new report, "Why Now is the Time for Montana to Join the Flat Tax Revolution," authored by Vice President and Director of Research Jason Mercier, outlines why adopting a competitive flat income tax would simplify the tax code, improve economic competitiveness, and help Montana better compete for families, workers, entrepreneurs, and investment. The study notes that Montana has already made remarkable progress by reducing its top income tax rate from 11% to 5.4% and consolidating its tax brackets, but still has one of the highest regional income tax rates.

"Montana has shown that tax reform works," said Jason Mercier, Vice President and Director of Research at Mountain States Policy Center. "Now is the opportunity to build on that success with a simple, fair flat tax that encourages growth, attracts investment, and keeps Montana competitive for generations to come."

The study highlights that 17 states now have—or are moving toward—a flat income tax, with 10 making the transition in just the last decade. Meanwhile, Montana remains surrounded by states with lower or no income taxes, creating increasing competitive pressure for jobs and investment.

The release of the report also marks the beginning of a broader statewide effort by Mountain States Policy Center.

Over the coming months, the organization will launch Flat. Fair. Montana., a public education initiative designed to engage Montanans in a conversation about modernizing the state's tax system. The campaign will feature original research, educational videos, a dedicated website, statewide polling, digital outreach, and town halls across Montana featuring economists, tax policy experts, elected officials, and local leaders.

"Our goal is simple," said Chris Cargill, President of Mountain States Policy Center. "Montanans deserve a tax code that's easy to understand, fair to every taxpayer, and competitive with the states we're competing against every day. This campaign is about educating the public and giving lawmakers the research they need to make Montana even stronger."

The full report is available here. Additional information about the Flat. Fair. Montana. campaign, including upcoming town halls and educational resources, will be announced in the coming weeks.