ST. PAUL, Minn. (AP) — House Republicans are proposing a modest income tax rate cut as part of their effort to sync Minnesota’s tax code with federal breaks.
The proposal released over the weekend is drastically different from Democratic Gov. Mark Dayton’s plan. The GOP’s plan would also increase the standard deduction $13,000 to $14,000 from and protect property tax deductions.
But a small reduction to income tax rates was the marquee item. It would reduce taxes on the second income bracket from 7.05 percent to 6.75 percent by 2020.
Conforming Minnesota’s taxes to the recent federal tax overhaul is the central issue of the legislative session. Failure to do so could pit many taxpayers with incidental tax hikes and mean a logistical nightmare when filing taxes next year.
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