Governor: Tax Plan Would Cut Deductions for 900,000 Minnesotans

ST. PAUL, Minn. – Minnesota Governor Mark Dayton is calling on President Donald Trump and Republican lawmakers to abandon their tax proposal, which is estimated to cut deductions for 900,000 middle-class Minnesota families.

As a result, an average of $12,000 tax deduction would be eliminated per Minnesotan.

“One of their most offensive proposals would eliminate the deductibility of Minnesota’s state income and sales taxes and local property taxes from our citizens’ federal tax liabilities,” Gov. Dayton said in a statement Monday. “It would completely remove these important tax deductions, which total over $12.3 billion per year for 900,000 Minnesota families.”

Dayton went on to say that with this proposed tax plan, the top 1 percent of the wealthiest Americans would receive 80 percent of the bill’s tax benefits by 2027, while lower and middle class tax payers would see 13 percent.

Minnesota is currently one of the few states that receives less than its taxpayers contribute in federal tax dollars – each dollar Minnesotans pay, the state receives 90 cents in federal spending. As a result, Minnesotans would end up paying more in federal taxes.

The following chart shows the impact by county across the state and includes the estimates of the average tax deduction Minnesotans would lose.