Montana Tops South Dakota in Latest GDP Report

Montana topped South Dakota and our neighboring states in the latest GDP report out of the Minneapolis Fed. Plus, another round of tax relief should continue to fuel the Montana economy.

The Big Sky Business Journal's Evelyn Pyburn joined us for a Monday morning update.

A new report from the ninth district of the Federal Reserve Bank of Minneapolis looked at the latest GDP numbers covering fiver different states, and it shows Montana taking the top slot.

Evelyn Pyburn: "The latest data shows that Montana has a GDP of 117.7 as compared to the next highest state, which is South Dakota, at 111.7. We are also producing at a higher level than the US average, which is one 114.5. And we have had a very steep incline in the increase of our GDP ever since COVID, exceeding all other states in the district by a wide margin."

Pyburn says Montana also has the highest percentage of employment in the 9th district.

I also think it is no coincidence that the Republican led Montana Legislature and Montana's Governor Greg Gianforte (R-MT) have been cutting taxes and government red tape in the last two legislative sessions, with more in the works this session.

The Big Sky Business Journal covered Friday's rally at the capitol put on by Americans for Prosperity-Montana which featured the governor.

"Gov. Greg Gianforte urged support for his tax cut proposal, SB323, that will cut income taxes for Montanans at every income level, sponsored by Sen. Josh Kassmier, R-Fort Benton. The proposal includes the largest income tax cut in state history, reducing the income tax rate most Montanans pay from 5.9% to 4.9%. SB 323 provides $850 million in permanent income tax relief, the largest in state history."

You might be surprised to know that even after cutting income tax rates in the last two sessions, Montana still has the highest income tax rate in the Rocky Mountain West.

Americans for Prosperity told the Big Sky Business Journal they support SB 323 because it is “the best tax reform policy that has hit this legislative session,” according to AFP Legislative Director Henry Kriegel.

At the federal level, AFP-Montana is also backing an effort to make the Trump tax cuts permanent. “We stand behind the Tax Cuts and Jobs Act because it unleashed prosperity in America going back to 2017. We need to make that permanent, otherwise tax rates increase.”

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