Senate poised to vote on tax plan with income tax cut

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.