The Republican-controlled Minnesota Senate Monday night approved a bill that would cut taxes roughly $900 million. Lino Lakes Senator Roger Chamberlain says when you put money back in people’s hands, they invest, buy, create and innovate. “Will there be recessions or downturns? Who knows? That eventually comes but, again, the best way to be prepared for that is a strong economy that’s diverse, strong, vibrant,” Chamberlain says. Governor Mark Dayton warns tax cuts as large as Republicans propose could throw the state budget into another series of deficits if the economy goes soft and the federal government cuts health care funding.
Senate Republicans’ tax bill would cut income taxes on the lowest bracket, reduce taxes on Social Security income for seniors, and lower business taxes — among other measures. House Republicans propose larger tax cuts totaling 1.35 billion dollars.
Senate Democratic Minority Leader Tom Bakk says the governor suggested around $300 million in tax cuts and “we probably could nudge up a little bit from that, but you can still put a very, very good tax bill together with 300 million or a little more, ’cause it was done last year.”