The House DFL Majority today announced a tax bill that would raise $1.2 billion in new revenue, largely by taxing corporations’ foreign profits, and invest it in education, health care, and safe and inclusive communities. The proposal comes as large corporations and the wealthy own increasing amounts of our economy, and destructive Republican budgets harm family economic security and limit opportunities for our children.
To download a fact sheet about the tax bill, click here.
“With this bill, we are leveling the playing field for working families, farmers, small businesses, and senior citizens,” said Rep. Paul Marquart (DFL-Dilworth), Chair of the House Tax Committee. “Democrats are making Minnesota’s tax system fairer, we’re bringing in new revenue to build a great future, and we’re providing real tax reform, including greater transparency and accountability. This bill is a winner for the taxpayer.”
The Tax Cuts and Jobs Act signed into law in late 2017 overwhelmingly favored big corporations, who received a massive permanent cut while working families received limited benefits for a temporary period of time. The House DFL’s new tax bill recognizes that corporations hit the jackpot with federal tax reform, and in response, Democrats would make sure working Minnesotans are able to share in the benefits.
“Our Minnesota Values Budget restores tax fairness for Minnesota families while making significant investments in education,” said House Speaker Melissa Hortman. “All of our children deserve a world-class education. We are investing in Minnesotans to build a brighter future for everyone.”
Income inequality has exploded in Minnesota in recent decades. To address it, House Democrats’ new tax bill would help tackle chronic underfunding of schools, which has significantly contributed to opportunity gaps based on race, geography, and income.
“We are reversing destructive Republican budgets that put the wealthy and corporations first, and investing in the areas Minnesotans have told us loud and clear that they value,” said House Majority Leader Ryan Winkler. “We’re offering Minnesotans a clear choice between the status quo and a state that works better for all of us.”
In response to Minnesotans who have told lawmakers for years that the state’s commitment to schools has not kept pace with inflation, House Democrats propose to invest $900 million in E-12 education -- approximately three-fourths of the new revenue raised by their tax bill (largely through Deemed Repatriation and changes to Global Intangible Low-Taxed Income).
To download a fact sheet about the E-12 education budget, click here.
“Democrats are listening to and hear loud and clear the parents, students, teachers, administrators, and support staff across the state who are asking us to make these investments,” said Rep. Jim Davnie (DFL-Minneapolis), Chair of the House Education Finance Division. “The Minnesota Values Budget ensures that schools can deliver a world-class education to students by investing honestly in what Minnesotans want for their children.”
House Democrats’ historic $900 million investment in E-12 education would allow the Legislature and Governor Walz to:
-Increase the per-pupil funding formula by 3% in the first year and by another 2% in the second year of the biennium
-Address school district cost drivers to help stabilize school budgets
-Provide access to high-quality preschool and early learning opportunities
-Prioritize student and teacher needs including increased student support staff
-Help students build varied bridges to post-secondary opportunities
A public hearing to walk through the tax bill is scheduled for Tuesday, April 9th at 8 a.m. in Room 5 at the State Office Building. The Tax Committee will recess for session and reconvene at 11:30 a.m. in the Basement Hearing Room. More information about public hearings and schedules is available on the Tax Committee webpage, found online at house.mn/committees.