While DFL touts largest tax cut in Minnesota history, taxes will still rise for most
ST. PAUL, Minn. – Democrats say their rebate checks, tax credits, and changes in Social Security income taxes represent the largest tax cut in Minnesota history.
However, there are also taxes going up for most Minnesotans.
Because Kim Cunningham lives in Minneapolis she, like every person in the seven-metro county area will face a 1% sales tax hike on Oct. 1. Part of that is for housing, and the rest for transportation.
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"As taxes go up, our incomes should go up [laughs], but it doesn't always work that way," Cunningham said.
Increases that will affect everyone in the state include a new gas tax starting Jan. 1 that's linked to inflation. The increase could be 5 cents a gallon by 2027. That would increase the current state gas tax from 28.5 cents to possibly 33.5 cents a gallon.
Another increase – there will be a delivery fee of 50 cents on packages valued at more than $100 starting July 1.
There has been a lot of back and forth on what should be included in the delivery fee tax. Right now, according to legislative aides, it does include 50 cents for over $100 in clothing -- even though Minnesota does not have a tax on clothing. It won't include deliveries of more than $100 for prepared foods, regular foods baby supplies and medical supplies.
"I think they should also increase the minimum wage if they're gonna increase the taxes," said metro resident Densel Bullard.
Other consumers who didn't want to go on camera told WCCO News the same thing. But then there is Jen Thalhuber, who offered this perspective.
"Personally I believe taxes are an investment in our community, and I support them as long as I plan and I budget and I understand," Thalhuber said.