“Our tax bill provides relief to more than 450,000 Minnesotans. It provides assistance to those who need it most, while protecting the progress we have made to stabilize our state’s finances,” said Governor Dayton.
ST. PAUL, Minn. — Governor Mark Dayton and Lt. Governor Tina Smith today unveiled their 2017 Tax Bill, which would provide $300 million in tax cuts for more than 450,000 Minnesotans and in aid payments to local governments for essential services, while protecting the state’s long-term fiscal health. The Dayton-Smith Tax Bill also would reduce taxes for Minnesota farmers and landowners to help build an economy that works for everyone, everywhere in Minnesota. And their proposal would eliminate tax loopholes for corporations – leveling the playing field for businesses.
“Our tax bill provides relief to more than 450,000 Minnesotans. It provides assistance to those who need it most, while protecting the progress we have made to stabilize our state’s finances,” said Governor Dayton. “I look forward to working with the Legislature to find a commonsense solution that prioritizes the needs of Minnesota families.”
The tax cuts would make high-quality child care more affordable for Minnesota families, and cut property taxes for Minnesota farmers who have seen their property taxes increase 114 percent in the last decade.
“Minnesota’s farm communities are the backbone of Minnesota’s economy. The last several years have been challenging for many Minnesota farmers, who are facing low commodity prices and rising property taxes,” said Lt. Governor Tina Smith. “Our tax bill would provide significant relief to farmers by buying down the cost of local school district levies. I urge the Legislature to provide this needed tax relief for Minnesota farm families this session.”
Governor Dayton and Lt. Governor Smith’s Tax Bill would help make work pay for low-income adults by expanding the Working Family Tax Credit. The program mirrors the federal Earned Income Tax Credit, which has been noted as one of the most effective anti-poverty tools by proponents ranging from Presidents Reagan to Obama. This credit benefits Minnesotans across the state.
In addition to investing in Minnesota families, the Governor and Lt. Governor’s proposal would strengthen Minnesota communities by increasing Local Government Aid by $20 million and County Program Aid by $10 million. This funding helps municipal and county governments provide essential services like police and fire protection, instead of relying solely on property taxes.
The Dayton-Smith Tax Bill would further invest in Minnesota’s water quality by providing aid payments to Minnesota farmers who participate in a water quality buffer strip program. The bill would provide counties and watershed districts $10 million in ongoing aid to help implement riparian buffer protection and water quality practices.
To reform Minnesota’s corporate tax law system, Governor Dayton and Lt. Governor Smith’s Tax Bill would close a variety of corporate tax loopholes that allow some businesses to shelter income, use tax deductions unavailable to regular Minnesotans, and evade the intent of Minnesota’s tax laws. These reforms would level the playing field for ordinary Minnesotans and small businesses.
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