Senate Republicans Release Tax Plan

With the statement, "We saved the best for last," Senate Majority Leader Paul Gazelka, R-Nisswa, and Tax Chair Roger Chamberlain, R-Lino Lakes, unveiled their tax plan at a State Capitol press conference Tuesday, May 1. According to Leader Gazelka, 99.9 percent of Minnesotans will see no tax increase and many will see a tax decrease under the plan.

Senator Chamberlain called the bill a "bridge to the future," conforming to as many of the federal tax law changes as possible while maintaining many of the itemized deductions in current law, like deductions for mortgage interest, state and local taxes, home equity loan interest, and charitable donations. Other features of the proposal include a reduction of the lowest tax bracket from 5.35 percent to 5.1 percent and an automatic trigger for tax cuts when a surplus is projected in the November economic forecast. According to Chamberlain, 82 percent of Minnesotans will see a decrease in their state tax bill of up to $150 dollars.

The Senate GOP plan uses just over half of the projected $329 million dollar budget surplus to pay for the tax reductions. While Minnesota has been among a handful of states using federal taxable income as a starting point for state taxes, both the Senate, the House and Governor Dayton's proposals switch to using the federal adjusted gross income instead.