Issue Position: Tax Conformity

Issue Position

An urgent order of business for the Minnesota House needs to be a bill which updates the state tax code to reflect the changes that were made to the federal income tax structure at the end of last year. The tax conformance bill which was vetoed by Gov. Dayton at the end of this year's legislative session included a provision which would have granted a $200 million tax credit to state corporations (which have already received a huge tax break the federal level). Perhaps of greater concern, the bill included provisions which would have led to a huge budget deficit in future years. When the legislature reconvenes, we need to immediately pass a tax conformance bill which protects Minnesota taxpayers from automatic state income tax increases which would otherwise result from the federal tax structure changes, and simplifies the filing of Minnesota income taxes. Any overall reduction in state income tax collections resulting from this bill should be focused on reducing the taxes paid by middle-class families.

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