SAINT PAUL, MINNESOTA — Today, House Democrats approved new changes to state taxes to improve fairness and pay for important investments in students, families, and small businesses. The proposal expands the Working Family Tax Credit, establishes conformity on unemployment insurance and PPP loans (up to $350,000 per loan), and provides aid for small businesses that did not receive a PPP loan or did not make a profit in 2020.
“This tax bill is how Minnesota can make sure our neighbors and community members hit hardest by COVID-19 don’t get left behind,” said Rep. Paul Marquart (DFL-Dilworth), chair of the House Taxes Committee. “It’s been an extremely tough year for working families, students, senior citizens, farmers, and small businesses. When the biggest corporations and the wealthiest are doing extremely well, Minnesotans expect the Legislature to level the playing field and fund important investments in people.”
To fund important investments in students, families, and small businesses, the House DFL tax bill creates a new 5th Tier income tax rate of 11.15% on income above $1 million (or $500,000 for single filers) and prevents multinational corporations from sheltering profits in offshore tax havens like Bermuda and the Cayman Islands.
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