In Minnesota GOP’s Opening Bid, Senate Eyes Income Tax Cut

ST. PAUL, Minn. (AP) – Senate Republicans are proposing to cut the state’s lowest income tax rate as part of a $900 million tax cut bill.

It’s Republicans’ opening bid in the brewing fight over tax cuts with Democratic Governor Mark Dayton. Tax talk will loom large as the Republican-controlled Legislature and governor start assembling a new two-year budget with a $1.65 billion budget surplus.

Senate Republicans unveiled the broad strokes of their tax bill Thursday that would phase out a Social Security income tax and provide college tuition tax credits. But top senators wouldn’t say how much they want to cut the state’s current 5.35-percent low tax rate.

Whatever the cut, most Minnesota residents would benefit. Even higher earners would pay a lower rate on their first $18,000 of income.