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.
“Massive tax changes at the federal level presented us with some serious challenges in terms of adapting at the state level,” said Rep. Steve Green, R-Fosston. “By simply conforming to federal changes, nearly 970,000 Minnesota filers would have ended up paying more. We did all we could to hold harmless as many people as possible and ended up with a good bill.”
Overall, 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.