Taxes May Increase by 1.5 Billion Dollars If We Do Not Change MN’s Tax Code

The Minnesota Department of Revenue estimates that if Minnesota does not change its tax laws to reflect the new federal tax code, we will see our taxes increase by nearly $1.5 billion dollars over the next couple of years.   This is unacceptable.  The Minnesota tax code must be addressed this term. The new federal tax code decreases people’s taxes, but we will not realize the benefits of those changes if Minnesota’s tax rates remain unchanged.  Depending on the source, Minnesota is currently between the 2nd and 5th highest taxed state in the country.  We can not afford additional increases.  We need to lower our taxes, not increase.

Every legislator in my caucus agreed that conforming to the new federal tax changes was a top priority for this last session.  The Minnesota House and Senate passed a tax conformity bill, but it was vetoed by Governor Dayton.  Taxes are already complicated.  The Governor’s veto of our tax bill not only means Minnesotan’s will be paying more in taxes, but the paperwork required to calculate next year’s tax increases will also double.  Fixing Minnesota’s tax code is a high priority for next year’s session with a new governor in place.