ST. PAUL – On April 30, the Minnesota House approved legislation that would cut taxes for the first time in two decades while making Minnesota’s tax code simpler to navigate.
State Representative Bob Gunther (R-Fairmont) voted yes on the plan.
“We’re looking at a bill that is fair for everybody, give a maximum number of people a tax cut, and still maintains the deductibility for various parts of our tax code,” Gunther said.
More than 2.1 million Minnesota filers will benefit from a tax cut in tax year 2018 according to Gunther.
Other 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.
Lowering taxes for people at all income levels by increasing the standard deduction from $13,000 to $14,000.
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.
By contrast, Gunther said Governor Dayton has crafted a plan that increases taxes on all classes of Minnesotans – from the poorest to the richest and everyone in between - by more than $1 billion.
The House tax conformity plan now heads to the Minnesota Senate for further debate.