Governor Vetoes Tax Bill for Rich, Corporations

Thank you to Gov. Mark Dayton for vetoing the Republican tax bill this morning.

The tax bill would have benefited the rich and corporations, not working families like ours. In a letter to legislators explaining his decision Thursday, the Governor said the GOP bill would give big tax breaks to the wealthy and to corporations, while hiding the true cost of the cuts by phasing them in.

“I will not sacrifice our state's hard-earned fiscal stability, as this bill does … Unfortunately, this tax bill, like the Federal Tax Law passed last year, prioritizes tax cuts for corporations over real people. Rather than investing in our children's educations, the GOP has decided that the foreign profits of large, multinational corporations are more important,” Dayton wrote.

The Republican tax bill would have:

  • Spent $246 million on corporate tax cuts and protections – $482 million by 2020-2021.
  • Given corporations tax-rate cuts that are seven times greater than the lowest-income Minnesotans.
  • Given corporations these huge tax breaks, on top of their 40 percent federal tax rate cut.
  • Shielded multinationals from paying $200 million in state taxes on money sheltered overseas.
  • Handed Minnesota’s wealthiest families tax rate cuts that are twice as big as those for working families.

The Governor vetoed the bill Thursday morning with some flair. The Star Tribune reports he was visiting an elementary school at the time. He counted to three and used the veto stamp as kids yelled “Veto!”

On Wednesday, Senate Democrats voted against the Senate Republican bonding bill, saying it was too small. The $825 million bill isn’t big enough to fix our crumbling roads, bridges, colleges or other infrastructure.

“We can’t put off these basic improvements any longer,” DFL Sen. Sandy Pappas told the Star Tribune, saying the Republican bill was only “halfway there.”

On Tuesday, the House Ways and Means Committee unanimously passed the Omnibus Pension Bill with no amendments added. There’s no word yet from GOP Speaker Kurt Daudt on when he’ll bring it to the full House floor.

A clean pension bill needs to be sent to the Governor by the Legislature before the clock runs out and the session ends at midnight Monday.