Getting the state’s tax code to conform with new federal changes is one of the top priorities of state lawmakers this session, but a Mankato Democrat is concerned that those who saw their take-home pay increase after they were implemented won’t understand the implication of failing to make changes on the state level.
State Representative Jack Considine said, “My fear there is that people are going to look at the short term gains and their paychecks and go, ‘Oh, this is a great thing, why are we doing something?'”
House Speaker Kurt Daudt has said a clean conformity bill would mean about a $550 million tax increase on Minnesotans’ state taxes, and they don’t want that to happen. Revenue Commissioner Cynthia Bauerly said Minnesotans would also be faced with a more complex filing system.
Considine added, “I’ve got to tell you, I don’t have the answer on this. I think we’re in for some serious problems if we don’t get this sorted out, and right now I’m not seeing a clear path forward.”
The revenue department’s preliminary estimate showed that adopting the federal changes, with no changes in Minnesota policy, would see state tax collections would grow by nearly $850 million in the current two-year budget period.