Income tax cut for all? That's MN Republicans' newest pitch - Bring Me The News

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

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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.

 Income tax rates for 2015. (Photo: Minnesota Revenue Department)

Income tax rates for 2015. (Photo: Minnesota Revenue Department)

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

 (Photo: MNSRC website)

(Photo: MNSRC website)

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