The Republican tax increase

Republicans, like State Senator Julianne Ortman, are trumpeting their “victory” in the state budget showdown, stopping Gov. Mark Dayton’s plans to increase taxes on the wealthiest Minnesotans.

What they don’t tell you, though, is how taxes will be increasing on practically all Minnesotans as a result of the budget that they voted for.

Let’s take a look at a couple of provisions that will touch you or your friends and neighbors.

The Market Value Homestead Credit is eliminated as a part of the Republican budget.  This credit program, instituted in 2001, as part of the larger property tax reform passed that year, gives a credit on property taxes of up to $304 on homes with values under $414,000.

Also, the renters property tax credit rate is reduced by 2% as part of the Republican budget.

Together, these two provisions of the Republican budget will result in a tax increase on 90% of Minnesotans — who will see an average increase in their property taxes of 4.5%.

So, when you see that increase hit your property tax bill, be heartened by the fact that the Republican majority stood strong and protected the wealthiest taxpayers in the state from having to pay their fair share of state and local taxes.

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