Supersized tax cut plan passes House

Published 10:39 am Thursday, April 30, 2015

ST. PAUL — In a debate that took them from a lake town pie shop to the moon, Minnesota House lawmakers dueled Wednesday over who would gain most from a Republican-written tax plan that aims for more than $2 billion in breaks soon and double that down the road.

The bill, which passed 74-58, contains an array of income tax credits and exemptions. It also would add more protections against the estate tax and gradually draw down a state property tax assessed on businesses. Three big cities — Duluth, Minneapolis and St. Paul — would see their state aid allowances reduced, which lawmakers from those areas called mean-spirited.

How many of those measures survive negotiations with Democratic Gov. Mark Dayton and the Democratic-led Senate is a major question. The governor and Senate leaders argue the bill cuts taxes too steeply and leaves Minnesota at risk of another round of deficits.

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Republican Rep. Greg Davids, the bill’s main architect, highlighted the new or expanded credits for Social Security income, education expenses, college loans, long-term care costs and fitness club memberships.