Tax Reform and What’s Next in Minnesota
The Tax Cut and Jobs Act of 2017 passed by Congress and enacted into law has resulted in major, and welcomed, changes to the U.S. Tax Code. We are already seeing results as dozens of companies, including many here in Minnesota like Best Buy, Priority Courier Experts, and TCF Bank, have announced significant bonuses for their employees.
In addition to cash bonuses, Minnesotans have begun to see increases in their paychecks due to decreases in taxes. Companies are announcing investments into local economies. In fact, Minnesota is now creating jobs just as fast as the rest of the country for the first time in years. This is all great news!
However, tax reform at the federal level is only one aspect of the taxes we pay.
The overall tax bill reflects a combination of assessments by federal, state and local taxing authorities. In many states, these tax assessments are intertwined so changes at the federal level must be accounted for at the state level as well. In Minnesota, that means we must pass a tax conformity bill this legislative session to address all the changes filers will see when filing their 2018 taxes.
If Minnesota fails to pass a tax conformity bill, the process of filing 2018 taxes, along with compliance and auditing processes, will be a disaster. There’s simply no good reason to allow for this uncertainty and prevent Minnesota taxpayers from reaping the benefits of this historic tax reform.
Part of what we must do is work to make sure Minnesotans do not experience tax increases due to changes required to comply with the federal reform. I will work to make certain my hard-working constituents in Chanhassen, Minnetonka Beach, Greenwood, Mound, Excelsior, Deephaven, Tonka Bay, Shorewood, Orono, and Spring Park do not see their overall tax bill rise due to changes the legislature proposes.
Federal tax reform was long overdue and much needed to jump-start our economy. Minnesota is in the process of creating the type of economic environment in which small businesses thrive and workers see rising wages. The early results have been extremely encouraging. Please know that my legislative colleagues and I will be working hard to ensure the reforms passed in Minnesota will keep the positive momentum going.
- Rep. Cindy Pugh, R - Chanhassen
House District 33B