Skip to main content

Income tax cut for all? That's MN Republicans' newest pitch

  • Author:
  • Updated:
    Original:

Take how much you owe in state income tax, and reduce it.

That's the proposal from Minnesota's Republicans, revealed by party leaders Thursday afternoon under the name "Family Surplus Plan." The plan would cut the income tax rate for everyone in the state by 0.5 percent.

The total savings for taxpayers, the GOP says? $1.1 billion in 2016-17, and $1.8 billion the two years after that.

“It’s time for families to experience some of the ‘surplus’ enjoyed by state government,” said Sen. Dave Thompson, author of the bill, in a statement.

That sentence is of course a reference to Gov. Mark Dayton and state Democrats, who have proposed budgets that include increased spending and about $200 million in tax cuts. Both Democrat proposals would put hundreds of millions of dollars toward education.

Democrats responded to the Republicans' plan later Thursday.

House DFL leader Rep. Paul Thissen put out a news release highlighting the people "left behind " by the GOP's budget proposal – which features nearly $2 billion in tax cuts including the income tax proposal. The Senate DFL tweeted a few links to stories calling Minnesota a national leader in tax fairness.

The state has a projected $1.9 billion budget surplus.

More on the GOP's proposal

The relief plan would affect everybody. But some people would still be paying a higher percentage of state tax than others.

There are four tax brackets, as they're called, with people paying different percentages based on how much they earn.

For example, a head of household making less than $30,870 a year would pay 5.35 percent state income tax; but if he/she makes between $30,871 and $124,040, they would pay 7.05 percent.

Here's a look at all the different 2015 tax brackets.

The GOP plan would bump all those down by 0.5 percent, meaning they would look like this:

Next Up

image

State announces $2.5M in grants for child care providers

Child care providers in roughly a dozen communities will receive funds to help grow the supply of affordable, quality child care.

image

Probe of Golden Valley police uncovers racism, alleged misconduct

One officer was terminated for alleged racist comments and violations of state law.

blowing snow

Blowing snow Friday in Minnesota; will it snow next week?

Winds could gust up to 50 mph Friday afternoon and night.

Deer hunting blaze orange

To combat CWD, late-season deer hunting announced for 9 areas of MN

The special hunts will be held between Dec. 16 and 18.

covid

COVID levels rising in wastewater; BQ.1 now dominant

BQ.1 is the new dominant subvariant in Twin Cities wastewater.

Screen Shot 2022-12-02 at 11.43.05 AM

Keith Ellison, other AGs settle with CarMax over recall disclosures

As part of the settlement, CarMax now must disclosure open recalls online and on the lot.

police lights squad car

Man kidnaps 2-year-old daughter in St. Paul, crashes after pursuit in Minneapolis

The incident involved both police departments in Minneapolis and St. Paul.

police lights

Boys aged 15, 16 arrested after shooting of teen in Woodbury

The victim suffered non-life-threatening gunshot wounds.

MoorheadMurderSuspect

Police: Woman found dead with 'traumatic injuries' inside Moorhead home

Police are investigating the incident as a homicide.

Screen Shot 2022-12-02 at 7.59.36 AM

St. Paul's East Side Bar closes after two-and-a-half years in business

The bar opened just as the COVID-19 pandemic closed bars and restaurants.

Police tape

Police: Man and woman found dead inside Rochester home

An investigation is ongoing as of Friday morning.

Related