Rate reductions in the bottom two state income tax brackets, a corporate tax cut, and all current itemized deductions would still be allowed on state income taxes — key features of a bill Minnesota House and Senate negotiators agreed to Friday night. Republican Representative Greg Davids contends it addresses many of Governor Mark Dayton’s concerns. Davids says, “You’ll hear different but I don’t know how you get around [it]: This is a middle-class bill.”
The Dayton administration is studying the plan. D-F-L Representative Paul Marquart from Dilworth says he’s encouraged because “we’re continuing to move… closer to the governor’s positions on a number of things.” Although the bill cuts state income tax rates in the bottom two brackets the question is, will that be enough for Governor Mark Dayton? Marquart notes, “While rate cuts are beneficial, they don’t target those working families like a credit would or the Working Family Credit would.”
Davids says, “This tax conformity bill, we need to do this, we need to do it now. It’s not a matter of if we should do it, or can we do it, or may we do it — we have to do it.”