5 October 2016

A constitutional ban on a sales tax is a bad idea

Democratic Gov. Steve Bullock, going for the electoral kill against his Republican challenger, Greg Gianforte, wants to amend Montana’s constitution to ban a sales tax, now, forever, and beyond eternity. Gianforte, whose 406 tax plan does not include a sales tax, once lobbied the legislature for a sales tax.

Whether a sales tax is a good idea is debatable. A sales tax that does not apply to food and medicine might be a way of providing relief on property taxes, but a sales tax that displaces a progressive income tax is regressive and a gift to the wealthy, such as Bozeman millionaire Gianforte.

Contrary to popular opinion, not all Democrats oppose sales taxes. Nor do all Democrats oppose value added taxes. Democrats are skeptical of these taxes, and rightly so, but not all are ideological hardliners on the subject.

A constitutional ban on sales and value added taxes is a bad idea. It robs future generations of a revenue tool they might need. Whether to adopt a tax is best left to the legislature, or to the voters through a statutory ballot issue.

As a matter of politics, Bullock’s proposed constitutional amendment makes sense. As a matter of policy, it does not.