- Last week, the House and Senate both held hearings on Governor Walz’s tax proposal, HF 1938.
- Even with a $17.5 billion budget surplus, the governor is proposing tax increases, including a new $1 billion annual payroll tax for the 24-week paid leave mandate, a 1/8th cent sales tax increase to the metro area for transit and an increase in motor vehicle tab fees and a 40% income tax rate increase for capital gains.
- The governor proposes raising the long-term capital gains rate from 9.85% to 11.35% between $500,000 and $1 million and 13.85% on income above $1 million.
- Click here to see Beth Kadoun’s testimony in House Taxes outlining the Chamber’s opposition to this short-sighted policy that would hit small business owners and farmers especially hard and create another large disincentive for upper-income taxpayers to locate in Minnesota.
Click here to read a fact sheet on this tax increase proposa