Tax debate coming into focus at Capitol

Published: Apr. 25, 2018 at 12:41 PM CDT
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The debate over taxes is coming into focus at the Minnesota Legislature as Republicans start shaping their proposals.

House Republicans' plan debated in a committee Tuesday would include a modest income tax rate cut and a slight uptick to the standard deduction. It's part of their effort to square Minnesota's tax code with federal breaks passed last year.

But the GOP plan would result in tax increases for roughly 180,000 Minnesotans. Minnesota Department of Revenue Commissioner Cynthia Bauerly faulted the elimination of some popular deductions for work-related expenditures and charitable donations.

Republicans argue that pales in comparison to the Minnesotans who would pay more under Gov. Mark Dayton's plan to extend a 2 percent tax on health care providers.

Rep. Greg Davids, chairman of the House Tax Committee, says the measure will get a full vote next week.