'Business-Friendly' Tax Bills Pass GOP-Led Senate
ST. PAUL, Minn. (WCCO) -- It took many hours of debate over two days but the Minnesota Senate has passed the last of a series of bills closing the state's $5 billion budget shortfall.
Republicans are fulfilling campaign promises they made that won them majorities in the House and Senate.
The GOP called the past Democratic policies "an assault" on Minnesota businesses. The tax bill completely phases out corporate property taxes over time. Republicans say it's an attempt to make Minnesota more business-friendly.
"We're going to try to grow the economy. Not grow government. Grow the economy. So is there a tax cut in here for job creators? You bet there is. We need more," said Sen. Geoff Michel, R-Edina.
The tax bill does not include any statewide tax hikes and for Minnesota businesses it includes a property tax cut.
But Democrats say cities and counties will continue to face the deep cuts imposed last year.
The bill also includes cuts to renters -- the average renter's credit check is cut $170.
Democrats predict the tax cuts for businesses will mean double-digit property tax hikes across the state next year.
One DFL lawmaker compared Minnesota to an airliner that's in trouble for all but the wealthy.
"If you are sitting in the back of the cabin, back of first class, back in the main part of the cabin, there's a hole in the fuselage. And worse yet, there's smoke coming in," said Senate Minority Leader Tom Bakk.
After hours and hours of debate, the vote was still along party lines. DFL Gov. Mark Dayton said he wants to raise income taxes on wealthy Minnesotans. So far there has been no compromise.
