Senate poised to vote on tax plan with income tax cut
ST. PAUL, Minn. (AP) — The Minnesota Senate is preparing to vote on its plan to cut income tax rates while matching the federal tax overhaul.
The Republican-controlled Senate’s proposal up for a vote Thursday would lower taxes on the first income bracket from 5.35 percent to 5.1 percent. It would also trigger future tax cuts when the state has a budget surplus and exempt estates worth up to $5 million from taxes.
Democratic Gov. Mark Dayton has signaled some openness to the tax rate cut. But he favors his approach of redirecting $400-plus million in additional tax revenue to middle income families through new tax credits.
A final vote was expected later Thursday.
Then the real work can begin. Dayton and Republican legislative leaders have just over two weeks to strike a final deal.
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