ST. PAUL, Minn. – The Minnesota House was set to vote on the Republican majority’s omnibus tax bill Monday. The bill included provisions for conformity of the state tax code following enactment of the federal Trump tax bill late last year, and contained other modifications to state tax policy.
The bill was heavily focused on corporate tax cuts, with these tax cuts doubling the percentage of cuts included for individuals. Absent from the bill was any aid to communities through increased local government aid or county program aid, no increase in the Working Family Credit, and no added help to homeowners or renters through the state’s Property Tax Refund program.
State Rep. Jen Schultz (DFL – Duluth) a member of the House Taxes Committee, released the following statement:
“The Trump tax bill gave massive, permanent tax cuts to large corporations creating huge windfalls for their shareholders. This bill continues this pattern of imbalance, cutting the taxes of corporations twice as much as the taxes of individuals. After the huge handouts to the rich from their federal counterparts, Minnesotans deserve better than what the Minnesota House GOP is proposing. When corporations don’t pay taxes, everyone else has to pay more.
“I’m also concerned about this bill’s effect on our state’s long-term fiscal stability. This bill would leave a $2 billion hole in our state budget by 2025, threatening our future ability to deliver on things important to all of us, like education and health care.
“There’s a better way forward. Gov. Dayton put forth a solid tax proposal which accomplishes our goals with regard to federal conformity while putting working families and seniors first. With less than three weeks to go in session, I hope we can quickly move in this direction to ensure Minnesotans can easily file their taxes next year while upholding the sense of fairness we value.”