Governor’s proposal would increase state budget reserve for the first time since 2001
ST. PAUL, MN – Governor Mark Dayton today proposed $616 million in tax cuts that would put more money in the pockets of middle class Minnesotans and benefit thousands of Minnesota businesses. The Governor’s proposal would allocate the remaining half of Minnesota’s $1.2 billion surplus to the state’s budget reserve, before allowing for up to $162 million in essential expenditures. The Governor’s proposal would increase the current budget reserve by $455 million if the legislature follows his recommendations – the first increase since 2001.
“Minnesota’s economy has added 133,000 new jobs during the last three years. Our improving economy has greatly improved the state’s budget forecast – giving us the opportunity to put more money in the pockets of Minnesota families and businesses,” said Governor Dayton. “I urge members from both parties to work together to pass these tax cuts quickly.”
Additional details about Governor Daytons’ proposed tax cuts and supplemental budget is available here.
Reducing Taxes for Middle Class Minnesotans ($301M)
By conforming Minnesota’s tax code to the federal government’s, Governor Dayton’s tax plan would simplify taxes and provide tax relief for middle class Minnesotans.
Reducing Business Sales Taxes ($232M)
In light of the budget surplus, Governor Dayton is calling for the repeal of all three business-to-business taxes passed in the last legislative session.
Simplifying the Estate Tax & Eliminating the Gift Tax ($43M)
The Governor’s tax plan would also simplify the estate tax and eliminate the gift tax, providing millions of dollars in additional tax relief for Minnesotans.