ST. PAUL, Minn. (FOX 9) - Minnesota lawmakers are proposing a "wealth tax" that would levy a one percent tax on people in Minnesota worth more than $10 million.
Minnesota wealth tax
What we know:
If this bill were to go into law, the tax would apply to a person or trust with in-state taxable wealth exceeding $10 million.
For every dollar above $10 million, the person or trust would be assessed a one percent tax. So, for example, if you had a net worth of $10,000,001 you would be required to pay a penny tax (one percent of that dollar).
What's next:
The bill was heard during Tuesday's House Taxes Committee meeting. Ultimately, it was laid over for consideration in the tax bill.
If passed, the bill would take effect starting with taxable years beginning after December 31, 2025.
Committee debate
What they're saying:
Democrat lawmakers argued that it's time for Minnesota's wealthiest residents to pay their fair share.
"This is an opportunity for us to have a conversation about what it actually means to structure a society that pays for itself and what it actually means to have a society where folks who have been successful are contributing in a way that makes the community rich for all of us," said Rep. Esther Agbaje.
"This is a wealth tax," said Rep. Liz Lee. "When we tax wealth, it's different than taxing income… A wealth tax is something that is appropriate for our time when you know there are federal policies that allow people to accumulate wealth at a faster rate than at any other time in our history. And everyone else in our districts are just trying to figure out how to make rent."
The other side:
"It's amazing to me that we keep coming up with the same ideas that have been tried and tried and have failed so many times before," argued Rep. Mike Wiener. "$10 billion in taxes over the last biennium. When is enough enough? It seems like there's an insatiable lust for more taxes."
Rep. Patti Anderson also questioned whether the tax would be constitutional if passed. She argued that there would be some people, like farmers, who might have assets (land and equipment for farmers) that total well into the millions but only translate to a modest income.