ST. PAUL, Minn. (KMSP) - Minnesota Gov. Mark Dayton says an estimates 900,000 Minnesota families would lose an average of $12,000 in tax deductions under the current tax proposal from President Donald Trump and Republicans in Congress. At a Monday morning news conference, the governor under Republicans to ditch their proposal.
“One of the 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,” Dayton said. “It would completely remove these important tax deductions which total over $12.3 billion per year for 900,000 Minnesota families.”
The governor says more than half of the proposed tax cuts in the Republican plan would go to the wealthiest one percent of Americans, with annual incomes of more than $730,000.
Dayton countered claims that the tax plan would stimulate economic growth by pointing to the 1981 tax cuts by President Ronald Reagan, which preceded a national recession, and President George W. Bush’s tax cuts, which preceded the most recent Great Recession.
“Those previous fiscal fiascoes should tell us that Congress’ present tax follies will make future deficits even worse and add to the federal government’s debt, which now exceeds $20 trillion,” Dayton said.
COUNTY-BY-COUNTY IMPACT OF TRUMP/REPUBLICAN TAX PROPOSAL
Source: Office of Gov. Mark Dayton, based on National Association of Counties analysis of 2015 IRS data.