Fiscal cliff would raise Minnesotans income taxes by thousands


If Congress and President Obama allow the nation to sail over the budgetary precipice known as the "fiscal cliff," Minnesotans would pay thousands more in income taxes. Forum Communications reports a Tax Foundation study found a family of four earning more than $87,000 would see an increase of more than $4,300 in annual income taxes. Spending cuts are harder to estimate but would affect Medicare payments to hospitals, education funding, and the National Guard, among others.

The Foundation has put together a primer on the tax increases and spending cuts that are scheduled to take effecct in the new year absent a new budget agreement.

Forum Communications also reports that some Capitol Hill voices, including Minnesota's Amy Klobuchar and North Dakota's Kent Conrad, are sounding optimistic about the chances of a deal to avoid the most dramatic impacts ... possibly reducing it to a fiscal pothole.

Next Up


Police seeking man who spray-painted camera shortly before fatal Uptown crash

The camera was painted just hours before the deadly crash happened.

FLickr - Uptown, Winston Smith, Deona Marie - June 14, 2021 Chad Davis

Frey vows removal of Lake Street barriers, lays out protest response plan

"We can't have a major commercial corridor like this shut down," the mayor said.

Camden Heide

Wayzata's Camden Heide commits to Purdue

The four-star guard is the top-ranked Minnesota recruit in the Class of 2022.

Pexels - moving boxes

Landlord group sues governor, attorney general over eviction moratorium

The suit argues property owners are left in a bind due to the executive order.

best buy

Best Buy is now selling travel, outdoor living items

The electronics giant announced the new collections on Tuesday.

Alex Rodriguez

Alex Rodriguez says 'we will' keep the Timberwolves in Minnesota

Glen Taylor has stood by his statement that he will ensure the teams stay in Minnesota.

House for sale

Zillow says its upgraded 'Zestimates' are now more accurate

It's employing machine learning to increase the accuracy of its price estimation feature.

geoffrey compton

Child who drowned in Woodbury was celebrating his 9th birthday

He drowned in Carver Lake in Woodbury on Sunday.


Minnesota economy would suffer if U.S. goes over 'fiscal cliff'

Lawmakers are headed back to Washington to continue a pre-election session this week. Without a deal on taxes and spending, a number of tax hikes and spending cuts will automatically kick in Jan 1. And officials say that would be bad for the Minnesota economy, MPR reports.