By Pat Kessler

MINNEAPOLIS (WCCO) — President Trump celebrated Congress passing into law a major overhaul of America’s tax system.

It’s the biggest change to the tax code in decades.

It will take a few weeks for the average Minnesota worker to feel the effects of the tax bill.

By February 2018: lower tax brackets kick in, and middle income workers will see a bump up on their weekly pay checks.

On 2019 tax forms: families can deduct up to $24,000 for dependents, double the standard deduction today.

But for many Minnesota taxpayers, this tax bill is fraught with uncertainty.

RELATED: How Will The GOP Tax Bill Affect Minnesotans?

That’s because Minnesota will lose an important tax benefit called SALT: State and local tax deductions.

Losing most of that deduction means a tax hike for thousands of Minnesotans.

Here is what you need to know.

Until now, there was no limit on how much state and local taxes you can deduct from your federal taxes.

Starting next year: those deductions are capped at $10,000. And that’s a big deal.

According to the IRS, in 2015: 881,740 Minnesota taxpayers claimed that deduction for state and local taxes.

That’s nearly 30 percent of all the taxpayers in the state.

The average deduction: $14,556.

And it’s widely popular, from north to south.

According to the National Association of Counties: In far north Roseau County, Minnesota, workers have good jobs making Polaris recreational vehicles, and deduct an average of $17,896.

Here’s a sample of other Minnesota Counties:

  • Hennepin County: $19,454
  • Crow Wing: $11,317.
  • Washington County: $15,454.
  • All the way to southern Olmsted County: $13,577

Without that deduction, those tax bills are likely to rise.

According to the Tax Policy Center: 80 percent of Americans will get a tax cut next year, especially high income.

But many of those tax cuts go away in seven years.

By 2027, 53 percent of taxpayers will see a tax hike.

That’s Reality Check.


Here are some of the sources we used for this Reality Check:

Effects of Tax Bill/State & Local Tax Deduction
CBS Money Watch: Winner & Losers in Tax bill
Tax Policy Center: Distributional Analysis of Tax Bill
IRS: State Tax Dsitribution
National Association of Counties US Map
MN House Research: Minnesota Itemized & Standard Deductions
Rockefeller Institute of Government: New York Balance of Payments w Federal Govt
CBS News: Tax Bill Winners and Losers
City of Roseau
Polaris Industries
USA Today: How Soon Will Effect of Tax Bill show Up?

Comments (6)
  1. Dirk Mudge says:

    Pat Kessler, in typical fashion, fails to disclose that it is the HIGH taxes in this state that make the deductions so much of a loss for taxpayers under the new tax bill.

  2. It’s immoral for rich Minnesotans. California and New York to get a tax subsidy from folks in poor states like Alabama, that’s why I fully support getting rid of SALT!

  3. I saw that you were going to have this, and I absolutely knew that it was going to be negative. Sure enough, it is. You’ve lost all credibility. It’s sad because so many people rely on you for information, and you don’t come across as biased.
    There are so many great things about the tax cuts, but you focus on something that will obviously only impact the upper class, and only because we’re in a very high income state. Why not break that down a little more so that we can understand it? Who are those people – how much do they make? Is the average middle class Minnesotan paying over $10,000 in state and local income taxes?
    And with the standard deduction increasing to $24,000, many people will no longer itemize anyway.

  4. The only ones affected are HIGH STATE INCOME states like Minnesota, New York, California, Illinois, etc. The liberal states. If we didn’t have such insane high taxes, having that money thrown down the drain for Democrat pet projects, people would not have to worry about these deductions. What does that tell you? It says millions of people in other states are subsidizing Minnesotans taxes. Pat Kessler is a worthless liberal skunk. Everyone knows it.

  5. Dirk Mudge says:

    Maybe Kessler can answer this question. Why is the 2nd headquarters for AMAZON not likely going to be a Minnesota location. Hmmm.

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