Governor Mark Dayton in his revised budget is proposing state income tax reductions for over two million Minnesotans, but has also set up another fight with Republicans. Dayton argues Minnesota businesses are getting huge tax cuts due to state and federal tax change, but “by contrast, individual Minnesotans did not receive much if any benefit from the federal tax bill — low- and middle-income citizens — so this is a way of balancing it out.”
But Dayton also wants to roll back three tax changes that put him into court with Republicans last year after he vetoed the legislature’s operating budget: Dayton wants the tobacco tax freeze taken off, some business tax breaks rescinded, and some estate tax breaks repealed.
Senate Republican Majority Leader Paul Gazelka calls the governor’s plan “too complicated.” Gazelka says it increases taxes, doesn’t take responsibility for the failed vehicle registration system, and increases fees on nursing homes.