Democrats in the Minnesota House are dropping their push for a fifth income tax bracket, which would have increased state taxes on the wealthiest Minnesotans and large corporations. House Democratic Majority Leader Ryan Winkler said this afternoon about a top-bracket income tax increase, “I don’t think we need to do that. I think we could make our commitments on an ongoing basis to schools and health care without that fifth tier at this point in time. Long term, we will need it in order to make the budget balance, but for right now, federal funds will get us through.”
Winkler says the disagreement now with Senate Republicans is not over tax increases, but on how to use billions of dollars in federal COVID relief that’s coming in to Minnesota. Winkler says there could be an agreement on spending in the various state budget categories but it’s “almost impossible” to pass all the bills by Monday’s midnight deadline — likely meaning a special session in mid-June.
Check back for reaction from Republican leaders and Governor Tim Walz.