(C) Minnesota Reformer
This unaltered story was originally published on MinnesotaReformer.com [1]
Licensed under Creative Commons License CC BY-NC-ND 4.0 [2]
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Republicans propose big tax cut; Dems say it’s too much for the rich
By: ['J. Patrick Coolican', 'More From Author', '- February'], Minnesota Reformer
Date: 2022-02
Minnesota Senate Republicans rolled out a proposal Thursday to reduce the first-tier income tax rate from 5.35% to 2.8% and eliminate state tax on Social Security benefits.
The bill would cost the state $8.51 billion over the next three years, according to Senate GOP.
“Our surplus means just one thing: Government took too much money from the taxpayers, and it’s time to give it back,” said Senate Majority Leader Jeremy Miller.
House Taxes Chair Paul Marquardt, DFL-Dilworth, said the GOP tax proposal is tilted to the rich: “Democrats don’t think millionaires and billionaires need a tax cut. This year, we are focused on providing help to workers, families, and senior citizens who need it the most.”
Anyone who pays income taxes — including the wealthy — would receive a break under the Republican plan because everyone currently pays 5.35% on the first $41,050.
That means workers who make less would receive a smaller break.
The most progressive tax cut would be a reduction in the sales tax because poorer people pay a larger percentage of their income in sales taxes than more affluent Minnesotans. Also, inflation is causing people to pay more in sales tax on many consumer goods.
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