Unpaid Commentary

2.15.2005
 
Red State Diaries: Montana

A “Wal-Mart tax”? You heard right sir; a Montana state legislator submitted today a bill that would tax large retailers who do not provide certain benefits to their employees. There is no telling if the measure would pass and be signed into law. Assuming it happens, Wal-Mart and Costco both seem ready to claim a violation of interstate commerce in federal court. To some extent, the law may be on the retailers’ side.

But ask yourself this: if resistance to Wal-Mart’s expansion has been largely in urban states, why do they find themselves on the defensive in Montana?

First, Montana is actually a progressive state. It is one of nine nationally that allows marijuana to be used for medical treatment. Also, the state collects only income and property taxes from individuals, eschewing the idea of a sales tax.

Second, Montana’s small population means that it has reached a crisis point over public health faster than others. With more big-box store jobs replacing both unionized and the so called “mom and pop” operations nationally, states with fewer people face a shortfall for public assistance sooner than others.

Now again, because this is a form of taxation that could be construed only to affect businesses headquartered outside of Montana it might fail on Constitutional grounds. But along with California’s attempt to force employers to provide health care to employees, the Montana “Wal-Mart tax” reveals that eventually states will find the optimal way to make “high volume retailers” pay their fair share toward their workers’ wellbeing.


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