Comparing the tax bills from the House, Senate and Governor Walz

Tax bill proposals at the State Capitol

Tax bill proposals at the State Capitol

The Minnesota House is debating the DFL-majority’s tax plan, the Senate will vote on their tax bill next week, and Governor Walz will also offer his own proposal for a tax bill.

House Democrats say their tax bill will include the largest tax cut in history, with the tax cuts targeting those deemed most in need.

“This bill is going to improve lives,” said Rep. Aisha Gomez (D-Minneapolis). “It’s going to make our tax code more simple, more fair. It focuses on families, children who are in poverty, and seniors who are struggling economically.”

Republican critics pointed out a key promise from campaign season is not being kept – repealing taxes on social security.

The House, Senate, and Governor all propose social security income tax reductions, but not full elimination.

A key difference between the three bills is in tax rebates.

Walz proposes $1,000 rebates for single tax filers and $2,000 for joint filers. The House proposes $275 and $500, with the Senate proposing a few dollars more.

All three propose a variety of child and education tax credits ranging from $620 to $1,500.

But there are also tax increases on the table.

Walz proposes a new capital gains tax as well as a tax on employers and employees to pay for paid family leave.

The House and Senate propose a new tax on overseas profits of Minnesota Multinational Corporations and for paid family leave.

“It’s unacceptable. Minnesotans cannot afford it, and it makes us uncompetitive,” rebutted