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ST. PAUL – State Representative Tony Cornish (R-Good Thunder) said he was happy to vote no on the Omnibus House Taxes proposal, as it calls for a $450 million income tax increase that will negatively impact small businesses and working families.
“The Democrats are using the gimmick of going after the rich and corporations to satisfy their insatiable appetite for revenue,” Cornish said. “If they’re going to raise revenue when we have a $2.2 billion surplus, when won’t they raise taxes?”
Cornish said the bill contains almost $800 million in tax and fee increases. The most publicized provision creates a new, fourth tax tier of nine percent on incomes of more than $400,000 for joint filers. While this gives the state an additional $452 million to spend over the next two years, the new tier could impact 59% of all small businesses in Minnesota.
Cornish said the legislation “threw out the bait on Local Government Aid and County Aid waiting for us to pounce on it.” Prior to the vote House Democrats passed out information showing how each member’s district would benefit through their bill. Yet Cornish said every Republican stayed unified against raising taxes.
“No amount of bait money offered to my district would make me vote for a tax increase when we have a surplus,” Cornish concluded.
Cornish added that Governor Pawlenty has already stated he would veto the House Taxes bill if it reaches his desk.