Friends,
We've had another busy week as the 2018 Session will soon be coming to a close. Read a bit about what we've been up to this week and have a great weekend!
Tax Conformity Bill Passes House
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. I did a quick video on this here.
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.
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.
Rep. Loonan with John Schroers, a champion of the outdoors at a rally at the Capitol.
Shakopee's own Matt Pastrana spent the week as a Legislative Page. He did a great job!
Joe Vaughan came to the Capitol to advocate for funding for our Community Action Partnership agency. Great people doing great things.
If you have any other questions on any of my bills or anything else going on at the legislature, please reach out to my office at (651) 296-8872. You can also reach me via email at rep.bob.loonan@house.mn.
Have a great weekend!
Bob