SAINT PAUL, MINNESOTA – Today, the Minnesota House is expected to approve a new tax bill that would raise $1.2 billion in new revenue, largely by taxing corporations’ foreign profits, and invest it in education, health care, and safe and inclusive communities. The proposal comes as large corporations and the wealthy own increasing amounts of our economy, and destructive Republican budgets harm family economic security and limit opportunities for our children.
“With this bill, we are leveling the playing field for working families, farmers, small businesses, and senior citizens,” said Rep. Paul Marquart (DFL-Dilworth), Chair of the House Tax Committee. “Democrats are making Minnesota’s tax system fairer, we’re bringing in new revenue to build a great future, and we’re providing real tax reform, including greater transparency and accountability. This bill is a winner for the taxpayer.”
The Tax Cuts and Jobs Act approved by a Republican Congress and signed into law by President Trump in late 2017 overwhelmingly favored big corporations, which received a massive permanent cut while working families received limited benefits for a temporary period of time. The House DFL’s new tax bill recognizes that corporations hit the jackpot with federal tax reform, and in response, Democrats would make sure working Minnesotans left behind by Republicans are able to share in the benefits.
“Years of Republican trickle-down economics and tax cuts for corporations and the wealthy have exploded income and wealth inequality,” said House Speaker Melissa Hortman. “The Minnesota House DFL tax bill closes corporate tax loopholes and asks the wealthy to pay their fair share, while expanding the Working Family Tax Credit and providing property tax cuts for our families, farmers, and seniors.”
Income inequality has exploded in Minnesota in recent decades as a result of destructive Republican budgeting. To address it, House Democrats’ new tax bill would help tackle chronic underfunding of schools, which has significantly contributed to opportunity gaps based on race, geography, and income.
“Destructive Republicans budgets have led to the wealthy and corporations owning more and more of our economy, leaving regular Minnesotans behind and robbing them of opportunity,” said House Majority Leader Ryan Winkler. “Our tax bill is what allows us to make honest investments in health care, education, and economic security. House DFLers are restoring tax fairness and investing in Minnesotans and their future.”
Minnesota House Democrats’ tax bill makes possible a $900 million investment in Minnesota schools and students that would:
- Increase the per-pupil funding formula by 3% in the first year and by another 2% in the second year of the biennium ($520 million).
- Keep students, teachers, and staff safer in school.
- Address Minnesota’s special education funding shortfall.
- Protect access to voluntary Pre-K programs for 4,000 children.
- Let schools hire additional student support staff, such as licensed counselors, psychologists, social workers, and nurses.
- Give schools more tools to recruit and retain more teachers of color.
- Expand students’ ability to earn college credits and develop skills through career and technical education programs.
On April 8, House Democrats first released a tax bill for public discussion and scrutiny. On April 24, Senate Republicans released their tax bill to the public for the first time — 16 days after House Democrats did. After the Minnesota House and Senate approve their respective tax bills, lawmakers from each chamber will form a conference committee to reach agreement on a final version.