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Posted: Apr 29 2015 5:25PM
Republican Tax Bill Favors Wealthiest Corporations at Expense of Middle-Class Minnesotans
SAINT PAUL, MN – Today, the House passed the omnibus tax proposal on a vote of 74 to 58. The bill provides $2 billion in tax giveaways—largely for corporations—laying the framework for the Republican budget which drastically underfunds education, cuts health care for working Minnesotans, and moves our state back towards deficits despite a nearly $2 billion projected budget surplus.
The largest permanent tax cuts in the bill benefit corporations and large businesses owners, many of whom don’t even live in Minnesota. In addition to putting corporate special interests ahead of Minnesotans, the tax cuts included in the Republican bill are likely to send Minnesota back to deficits. When fully phased-in, the price tag on the Republican tax bill costs $4.5 billion. If it were phased-in during this budget year, the state’s $2 billion surplus would become a $2 billion deficit.
“Republicans have chosen to prioritize billions of dollars in tax cuts for the largest corporations in our state at the expense of Minnesota’s future,” said DFL Leader Paul Thissen (DFL—Minneapolis). “After all of the promises made to middle class families, opportunity for most Minnesotans will be lost in the shadows of the downtown skyscrapers, who are by far the biggest beneficiaries of the Republican majority.”
While Republicans are touting “middle class” tax cuts, the middle class tax break in the bill (increasing the personal & dependent exemption amount) lasts only two years. The average Minnesotan would see about a $70 tax cut, for two years only. In contrast, when fully phased-in, the permanent corporate tax cuts will cost $1 billion per year.
“With a budget surplus, we have a real opportunity to define our priorities. And those priorities should include investing in education and ensuring our budget is stable into the future,” said Deputy Leader Paul Marquart (DFL—Dilworth). “Instead, we are investing $1 in education for every $15 in tax giveaways, reversing the progress we’ve made over the last two years to bring property taxes down, make college more affordable, and erase a decades-long cycle of budget deficits.”
In 2013-14, DFLers provided $177 million in direct property tax relief to homeowners, renters, seniors and farmers, benefitting nearly 1 million Minnesotans. This bill includes no direct property tax relief for individuals.
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