A GOP-sponsored bill aligning Minnesota’s tax code to sweeping federal changes will head to the House floor. The House proposal cleared its final committee Wednesday and includes modest income tax rate cuts and a slight increase to the standard deduction.
DFL Representative Jack Considine is pleased with parts of the plan, like allowing small businesses and farmers to deduct equipment costs from their state taxes, however he feels it doesn’t do enough for the majority of Minnesotans. He said, “For every benefit for normal people, there are three benefits for corporations and big businesses.”
He said the federal tax bill was a big win for corporate interests, and DFL Governor Mark Dayton’s goal with the tax conformity legislation was to even things up for average Minnesotans. Considine termed it, “A thumb on the scale to try to balance things for normal folks, and this bill does not do that.”
Republicans counter that Dayton’s proposal would increase taxes by $1.4 billion. He wanted, among other things, to extend a soon-to-expire tax on health care providers and reinstate some of the taxes the legislature eliminated last session.