Brown wants to rein in taxes

Gov. Brown or Gov. Schweitzer, why should you switch horses in the middle of the stream? Things are going reasonably well. Jobs are plentiful and wages are up. What is the problem?

To answer those questions, we first need to ask, "Why are things better now?" When you look back at Montana's economic history, from about the mid-1970s to the mid-1990s, Montana operated by the "tax and spend" philosophy. Anything that prospered was severely taxed and regulated. Any time the treasury needed more money, taxes were raised and our economy went from prosperity to poverty.

In the mid-1990s, a dedicated Republican legislative majority and a few bold Democrats decided it was time for a change. From 1995 to 2005, Montana's tax structure was greatly improved. Business-equipment taxes, oil and gas taxes, income taxes, capital-gains taxes and vehicle-registration taxes were all reduced. Property-tax increases from re-appraisal were mitigated, and the death tax was eliminated. Many of these taxes were previously the highest in the nation.

As we entered the 21st century, the economy improved and, except for a short setback right after the 9/11 attack on our country, the new economy, fueled by tax cuts, has been setting records that are the envy of the nation.

Tax revenues to the state at these reduced tax rates are now double what they were just 10 years ago. When taxpayers and businesses are allowed to keep more of their money, they will spend it, they will save it, they will invest it, they will buy more equipment, they will hire more employees, they will pay more in wages. That is how you make more tax revenues from lower tax rates.

As the governor took the oath in January 2005, he inherited a $400 million surplus of unexpected funds, followed in 2007 by an enormous $1.4 billion surplus in your tax dollars.

What happened with those funds? The Schweitzer administration masterminded the two biggest spending increases in the history of Montana. He also bragged he did not raise taxes but forgot to mention he removed the economic trigger on the business-equipment tax.

That meant 16,000 small businesses were stuck with this onerous tax that was scheduled to disappear. He also put into place tens of millions of dollars in new and increased fees on hunting, fishing, recreation, lending, cell phones and a whole lot more. Spin it all you want, but a fee is still a tax.

In the first 35 months of power, the Schweitzer administration has increased spending by more than 40 percent. The total spending for the next two years is approximately $9.15 billion dollars.

That equals a staggering $40,000 of government spending for every family of four in Montana. That would go a long way toward health insurance and college tuition for that family and its children.

At the same time, government has grown by nearly 1,000 new employees. If there is even a slight economic setback, the automatic escalators in the spending frenzy will undoubtedly lead to calls to raise taxes. That is exactly what our history tells us we should not do.

So "What can Brown do for you?" As governor, I would do the following to head off the problems that are likely to be ahead and to instill more trust in government:

1. Propose real property tax relief and the elimination of the business-equipment tax. This economic stimulus will keep the economy going.

2. End this out-of-control spending frenzy and replace it with a process that returns responsibility and accountability.

3. Bring integrity and accountability to campaign-finance reporting and openness in government. There is no reason why we should be getting failing marks in that category.

4. Promote Montana, not myself.

I am very excited and optimistic about the opportunities and possibilities for Montana's hard-working families. Yes, there are many challenges in our schools, our universities, energy, the environment, natural-resource development, healthcare, workforce training, jobs on our reservations and a whole lot more.

But we are up to the challenge. Montana's greatest resource is its people. We can and we will find workable solutions. However, let's not go back to the tax-and-spend philosophy that was such a failure in the past.

I started off with the analogy of switching horses in the middle of the stream. Look at it this way. If you are out in the middle of the stream on your show horse and you are about to be swept away, why not jump on that work horse standing firmly on tested ground right next to you?

State Sen. Roy Brown is a Republican Montana gubernatorial candidate.