Efforts to ensure that Minnesotans don’t pay too high a share of their incomes in property taxes took another step forward this week as the House Property and Local Tax Division passed its Division Report. The report was authored by Representative Jim Davnie and amended on to House File 2.
A new state income tax bracket proposed for the highest-income Minnesotans would not touch most small businesses, since only a small share of households that report “small business” income would be in the new bracket.
The budget targets released by the House and Senate last week invest in many of the building blocks of our economic future, but also call for cuts to health and human services that could harm Minnesota’s most vulnerable residents.
Minnesota has dramatically cut investments in our public universities and colleges in recent years, driving up tuition and undermining the state’s ability to produce the well-educated workforce we need to be competitive.
The days are getting longer and the weather is turning warmer. That’s a sign winter is changing into spring. What hasn’t changed since January are the critical needs for this legislative session:
Many Minnesotans have seen the value of public health and human services at some point in their lives, whether it’s child care assistance that enabled a friend to keep her job, nursing home care for an elderly parent, or affordable health insurance for a cousin with a chronic illness. These and other essential services improve the health and stability of Minnesota families throughout the state.
I sometimes think of the State of Minnesota as a ship that’s been heading in the wrong direction. We’ve spent the last few weeks reviewing elements of Governor Dayton’s proposed budget, which includes many ideas that will start to turn Minnesota around and get us back on the right course. His budget also reflects the reality that you can’t turn a ship on a dime.
Governor Dayton’s budget seeks to put the brakes on more than a decade of budget deficits, gimmicks and deep cuts to services, and instead create a fairer tax system that invests in our future. We’ve talked about some of his plans to reach those goals in earlier blog posts, like health care reform, education and tax reform.
A national report confirms what many Minnesotans already know: Minnesota’s tax system does not share the responsibility for funding public services fairly. The Minnesotans with the highest incomes pay the smallest share of their incomes in state and local taxes.
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