There is very disappointing news to report from the State Capitol, as Governor Dayton has vetoed middle-class tax relief legislation that was overwhelmingly approved by Republicans and Democrats in the Minnesota House and Senate.
Gone is tax relief totaling $13 million for veterans; $182 million for working families through the expansion of the childcare and working family tax credits; $110 million for college graduates paying off student loans; $49 million for families who contribute to 529 plans in order to save for their children’s college costs; and $146 million in property tax relief for every Minnesota small business through repealing the commercial-industrial property tax off their first $100,000 of property value.
The compromise proposal had staggering bipartisan support, passing 123-10 in the House and 55-12 in the Senate. Yet Governor Dayton vetoed it despite agreement from Republicans to make two changes he requested to fix a drafting error and restore a small sales tax exemption.
Previously, the governor publicly said he would not hold the tax bill hostage over special session negotiations. Considering this was an easy fix, it’s very clear Governor Dayton just wanted to play games with this tax relief bill as leverage for his own new spending projects.
Now the governor is saying we should agree to meet in special session to fix the tax bill, but first lawmakers would have to agree to his demands to spend more money on light rail and a number of his other favored projects.
Of course, the governor could call a special session just to address the tax bill. It’s something we’ve asked him to do, but he refuses.
I’ll let you draw your own conclusions.
The sad reality is this middle class tax relief proposal was approved by 89 percent of state lawmakers. Now, hundreds of thousands of Minnesotans will literally pay the price as Governor Dayton has turned this legislation into a political football.
As always, I am interested in your feedback. Please feel free to contact me by e-mail at Rep.Kathy.Lohmer@House.MN or contact my office at 651-296-4244. You can also send mail to my office address: 501 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.