Friends,
On Monday, we passed bipartisan tax legislation on a vote of 90-38. The House tax proposal simplifies Minnesota’s tax code to fully benefit from federal tax reform and provide additional tax relief to middle-class Minnesotans. The legislation also delivers the first income tax rate cut for Minnesotans in nearly two decades by reducing the second tier income tax rate.
This bill delivers the first income tax cut in nearly 20 years and preserves many of the tax breaks Minnesota families use. We are committed to getting a tax conformity bill done this year so Minnesotans won't face hassles and headaches when they file their taxes next April. Without House Republican reforms, conforming to the federal tax code would cause 969,490 filers to pay more.
Rep. Christensen with Rep. Roz Peterson speaking with students from Nicollet Middle School who were visiting the Capitol.
As a result of House Republicans’ proposal, more than 2.1 million Minnesota filers will benefit from a tax cut in tax year 2018. Highlights include:
- Helping middle-class Minnesotans keep more of what they earn by cutting the second tier income tax rate from 7.05% to 6.75% by tax year 2020. This would mark the first income tax rate reduction in Minnesota since 2000.
- Lowering taxes for people at all income levels by increasing the standard deduction for all filers.
- Protecting families by preserving a state personal and dependent exemption of $4,150.
- Encouraging affordable homeownership by allowing a state-itemized deduction of up to $30,000 in property taxes.
- Supporting hometown businesses and farmers by reinvesting extra revenue from corporate tax changes into Section 179 conformity and overall rate reductions.
In contrast to House Republicans’ legislation to simplify and reduce taxes, an analysis conducted by the Minnesota Department of Revenue shows that tax changes proposed in the governor's supplemental budget would raise taxes on Minnesotans of every income level, and make Minnesota's tax code more regressive.
The contrast with Governor Dayton could not be more clear: The Governor is proposing more than a billion dollars in tax hikes on health care, small businesses, and thousands of Minnesota families while we are focused on lowering income tax rates and preserving tax breaks for Minnesotans.
As always, please continue to stay in touch to share your thoughts and ideas. You can schedule a time to meet with me in my office anytime by calling my office at (651) 296-9463 or share your thoughts via email by emailing me at rep.drew.christensen@house.mn.
Have a great weekend!
Drew