ST. PAUL – The Minnesota House on Monday passed bipartisan tax legislation which aims to simplify Minnesota’s tax code 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.
“School safety and tax relief are two of our top priorities in the House and we now have passed bills to help in both regards the last several days,” said Rep. Bud Nornes, R-Fergus Falls. “The bipartisan support each of these bills have gained really bodes well as we now begin negotiating our positions with the governor and the Senate. It’s going to be difficult for the governor to continue his push to raise taxes on households of all income levels when so many members of both parties are supporting the House plan to provide real relief.”
Without the House reforms, conforming to the federal tax code would cause nearly 970,000 filers to pay more. Instead, the House bill delivers the first income tax cut in nearly 20 years and more than 2.1 million Minnesota filers will benefit from a tax cut in tax year 2018.
In contrast to the House’s legislation to simplify and reduce taxes, an analysis conducted by the Minnesota Department of Revenue shows that tax changes proposed in Gov. Mark Dayton’s supplemental budget would raise taxes on Minnesotans of every income level, and make Minnesota's tax code more regressive.