ST. PAUL, Minn. – Today the Minnesota House passed the Republican majority’s omnibus tax bill. The bill was largely necessitated by the Trump federal tax bill and a bipartisan desire to conform the state’s tax code with the new federal code. In addition to federal conformity, the bill contained a number of other changes to state tax policy, with an emphasis on corporate tax breaks. Notably absent from the bill were aid to communities through increased local government aid or county program aid, an increase in the Working Family Credit, or any increase to homeowners or renters through the state’s homestead credit or renter’s refund programs.
During the course of the debate, Rep. John Lesch (DFL – St. Paul) offered an amendment requiring corporations to demonstrate a 5 percent increase in the total number of jobs they’ve created in order to qualify for the new lower corporate tax rate contained in the bill. The measure was defeated on a nearly party-line vote.
Rep. Lesch, a member of the House Taxes Committee, issued the following statement:
“We’re only in this position because of the Trump corporate handout and its impending headaches for Minnesotans. It’s not enough that federal package gave corporations a massive permanent tax cut along with other giveaways to the very richest; this bill gives twice the tax cuts to corporations as it does to individuals.
“With all the promises we’ve seen about job creation, I thought it was only appropriate to ask for at least modicum of accountability before cutting corporate taxes further, and my amendment would have provided this. That Republicans resoundingly voted this down should speak volumes.
“While the corporations are again big winners, many of the people I represent are still worried about their futures. We had the opportunity to help these folks out in this bill, as the Governor did in his proposal, providing the fairness that the federal bill lacked, but Republicans chose not to. I hope we can see a balanced tax bill yet this year that makes taxes fairer for working families and seniors.”