Minnesotans Could Face Hikes With New Federal Tax Law
ST. PAUL, Minn. (WCCO) — The Minnesota House on Monday passed a bill to soften the blow from the new federal tax law.
If lawmakers do nothing, taxes could go up for hundreds of thousands of Minnesotans. President Donald Trump's tax reform bill reforms taxes up for many Minnesotans by eliminating many of the tax deductions we take for granted.
The Republican bill lowers some tax rates and raises the standard deductions for more than two million Minnesota taxpayers. But there's also a tax hike for about 140,000 Minnesotans.
Republicans say call it a good compromise, but Democrats say it favors corporations over middle income earners.
"We want to help make this a better bill and what I am encouraged about is that I'm confident we can get a bill," Rep. Paul Marquart of the Taxes Committee said.
"Better than what?! Folks, it doesn't get any better than what we did in this tax bill. It doesn't get any better," Taxes Committee Chair Rep. Greg Davids said.
Senate Republicans are set to release their own tax bill on Tuesday.
Here's why this is important: Time is running out on the legislative session, and if lawmakers fail to pass a tax bill to mesh with the federal bill by May 20, about 300,000 Minnesotans could face steep tax hikes.
