Key issues: Taxes

Our approach

We support a pro-growth tax system that improves competitiveness, reduces complexity, improves predictability and stability, and increases accountability. Minnesota’s state and local tax systems should be changed to ensure they cultivate innovation, attract investment, attract talent and foster job growth and retention – all items needed for a strong and growing economy. Minnesota must enact a more competitive, pro-growth, simplified tax system and lower tax rates so Minnesota is no longer in the top ten states for high taxes.

Business community priorities

Reducing Minnesota’s individual income tax rates to get out of the top ten highest in the nation to improve talent recruitment, competitiveness of pass-through businesses, and to encourage talent, investment and economic growth.
Reducing Minnesota’s highest in the nation’s corporate income tax rate of 9.8% to get out of the top ten highest in the nation in order to improve business competitiveness, private sector investment and economic growth.
Enacting reforms for taxation of foreign sourced income to bring Minnesota more in alignment with other states. This includes reducing global intangible low-taxed income (GILTI) subject to Minnesota taxation from current 50%; increasing dividend received deduction and allowing inclusion of related foreign apportionment factors for foreign sourced income.
Providing property tax relief by lowering the state business property tax levy, an extra tax assessed on businesses that results in the high fixed cost of doing business in Minnesota.
Encouraging investment, innovation, entrepreneurship and productivity growth in Minnesota operations through enhancing the research and development tax credit (R&D), including refundability and simplified calculation and reinstating immediate expensing of R&D, continuing angel investment tax credits, and providing incentives for investments in workforce training and other investments in Minnesota-based operations. If a federal tax bill is enacted, Minnesota should fully conform to R&D expensing; interest expensing and bonus depreciation and the pass-through deduction.
Conforming to the federal estate tax threshold to remove the high financial disincentive to remain in Minnesota and to reduce barriers for transfers of family farms and businesses.
Oppose tax increases that undermine Minnesota’s competitiveness and hinder economic growth. We also support reducing taxpayer administration compliance burdens, improving taxpayer procedural protections and providing clear release guidance to taxpayers.