By Pat Kessler

MINNEAPOLIS (WCCO) – Democratic Gov. Mark Dayton denounced Monday the Republican tax plan in Washington, saying it could cost thousands of dollars for nearly a million Minnesota taxpayers.

In a news conference, Dayton called the Trump administration’s tax plan “offensive,” particularly in that it would eliminate a major Minnesota tax deduction.

But businesses leaders say the governor’s words are unfair, adding that the plan might actually help.

The Trump tax reform plan eliminates a major benefit for high-tax states like Minnesota — no more federal deductions for state and local taxes.

Dayton says losing it will disproportionately harm Minnesota taxpayers.

“I strongly urge President Trump and Republicans in Congress to abandon this and other extremely regressive tax proposals,” he said Monday.

The State Revenue Department reports that almost 900,000 Minnesotans deduct state and local taxes on their 1040 forms, and will lose an average of about $12,000 in deductions.

Dayton says Minnesotans would be paying for tax cuts for the rich.

“More is never enough. More is never enough,” he said. “People who have so much always want more.”

But supporters of tax reform say deep corporate tax cuts in Minnesota will kick-start the economy.

“For most taxpayers, they’re going to see actually a tax reduction,” said Beth Kadoun, of the Minnesota Chamber of Commerce.

Minnesota’s largest business group says tax payers may lose the state and local tax deduction, but the number of tax brackets will shrink, tax rates will drop and the standard deduction will double to $24,000 — a huge added benefit.

“When you look at it in its totality, it’s going to make our system fairer, better, and pro growth,” Kadoun said.

Dayton does not believe $1 trillion tax cut will fuel a new economy — based on history.

“It hasn’t worked that way,” he said. “I’m amazed that they can even say with a straight face.”

Dayton says he will ask all three Minnesota Republican Congressman to oppose this part of the tax bill.

That’s what Republicans from other high-tax states — like New York, California and New Jersey — are already doing.

The tax bill is still not public, but it has been negotiated behind closed doors.

The first public version is expected Wednesday.

Pat Kessler

Comments (5)
  1. Governor Dayton thinks the government knows how to spend YOUR money better than you do.

    1. By using YOUR money to buy off public sector unions and other bred constituencies.

  2. Tim Neumann says:

    The most offensive thing is having Dayton as Governor. Mindless, incompetent slug.

  3. Mark, give up your tax haven accounts in SD. Trump doesn’t need to hear your hypocrisy about taxation policies.

  4. Maybe Dayton should read the 13th and 14th amendments. The Government isn’t allowed to single out and discriminate against Rich people either and involuntary servitude is prohibited in the USA.

    Artificially inflating housing and rents are causing poverty, not the minimum wage. Minimum wage isn’t even being added to the equation when they price fix homes and rent prices.