Hello from the State Capitol,
Last week I discussed how I was reviewing Governor Dayton’s tax plan and determining the pros and cons of the proposal. This week, the governor’s revenue staff weighed in with an analysis. In my opinion, the findings are not ideal.
This tax incidence study found that the governor’s proposal would raise taxes on Minnesotans in every income bracket, would make Minnesota’s tax code more regressive, and families who make $30,000 a year or less would suffer the most negative impacts.
The plan would also reinstate more than $1 billion in health care tax increases, repeal tax reductions enacted last session, and make numerous changes reacting to tax changes at the federal level.
The Minnesota House Taxes Committee is currently vetting the Governor’s plan and giving it a full hearing. Personally I don’t agree with the governor’s approach. State and federal tax relief is helping our economy improve as evidenced by our latest budget surplus projection. Punishing Minnesotans in every tax bracket – from the rich to the very poor and everyone in between – is not the way to continue our state’s financial success.
In other Capitol news, deputy registrars would receive some assistance under legislation approved by the Minnesota House. Recognizing that deputy registrars have been spending countless dollars out of their own pocket due to Minnesota’s failing licensing and registration system (MNLARS), the House plan would appropriate $9 million from Driver and Vehicle Services operating accounts for reimbursement aid. These folks have been struggling mightily due to this MNLARS mess, and I voted in favor of this proposal that now heads to the Minnesota Senate for further debate.
Have a good weekend,
Nolan