One Big Beautiful Bill will benefit working Montanans

The “One Big Beautiful Bill” (OBBB) passed by Congress and signed by President Trump is a game changer that will benefit middle-income, working-class Montanans. Yet Montana Senate Minority Leader Pat Flowers (Montana’s top Democrat) said “I just think it is a betrayal of working Montanans and Americans,” mirroring national Democrats’ political talking points. One must wonder if elected Democrats even read or understand the bill.

Regarding Medicaid, it does not “gut” the program as Democrats claim. It will reduce Medicaid growth from 5% to 3%, remove illegal immigrants from participating and require work requirements, education, or community service of 80 hours per month for able bodied adults without young children. These common sense requirements encourage work, education, and community service and are already included in Montana law.

Regarding tax changes, OBBB extends the Trump tax cuts from 2017 to avoid the biggest tax hike in American history. Without the bill, a working family of four making $75,000 per year would have faced tax increases of almost $1,500 per year.

Other provisions benefiting working class Montana families include: no taxes on tips and overtime for those making less than $150,000, a $1,000 per person charitable deduction even if you don’t itemize your deductions, a new $6,000 deduction for those 65 and older, a new deduction for $10,000 of automobile loan interest even if you do not itemize, increasing the standard deduction $750 for single taxpayers and $1,500 for married couples, and increasing the state and local tax deduction from $10,000 to $40,000. These provisions will save Montana taxpayers an estimated $114 million in taxes per year just in Montana income taxes. Federal tax savings will be much higher.

Montana small businesses will also benefit from the above changes in addition to numerous other tax reforms, including extending the 20% qualified business deduction and the ability to expense 100% of new equipment purchases.

Montana’s state government budget should not be harmed as it looks like we will be over-collecting close to $100 million more in tax revenue than estimated in Fiscal Year 2025. We also have over $1 billion in rainy day and other funds to stabilize any possible revenue shortfalls.

Once again, Montana Democrats are out of touch with working families, seniors, and middle-class taxpayers. Democrats have consistently and repeatedly voted against Montana income tax reductions. Do not fall for the Democrat talking points that OBBB will gut Medicaid, close hospitals and only benefit the rich. Let Democrats know how these tax reforms are benefiting your family and tell them to keep their hands out of your income, especially when Montana already has more than enough tax revenue.

By: Senator Greg Hertz, R-Polson