Budget Agreement Could Result In First Tax Cut In 2 Decades
MINNEAPOLIS (WCCO) -- Thousands of Minnesota taxpayers could be getting an income tax cut -- the first in 20 years -- as part of a budget agreement making its way slowly through the State Capitol.
Lawmakers ended their regular session on Monday without passing a budget. Now, Gov. Tim Walz is preparing to call a special session.
You'd have to go all the way back to 1999 -- the first year Jesse Ventura was Governor -- to find the last time the legislature passed an income tax cut.
But next year, almost half of taxpayers will pay a little less or get money back.
The tax cut is for individuals earning as little as $38,000 and families making up to $154,000. It's going to be an average tax cut of about $280 a year for families.
The tax cut was devised by Republican State Sen. Roger Chamberlain, who said regular taxpayers were losing out on tax cuts to special interests.
"To the extent that we can give relief to citizens and give them a little more ability to keep what they have, and generate more economic growth, I think it's important. But most important it's just to say thank you. We have enough up here. Go out and keep doing it," Chamberlain said.