House GOP Tax Bill: A Quarter Tank of Gas & A Billion Dollar Property Tax Increase

There’s a parlor trick going on in the Minnesota Legislature. The House Republicans’ tax bill slashes 300 million in property tax relief dollars, otherwise known as Local Government Aid (LGA).  The Minnesota Department of Revenue states that every dollar the state cuts in LGA, property taxes go up 67 cents.  Property taxes are also what we call regressive taxes. They’re regressive because they aren’t based on a person’s ability to pay like the state’s income tax is.

Here’s where the GOP’s trick comes in.  While increasing property taxes by more than a billion dollars over the next four years, the GOP has proposed a small income tax cut. How small do you ask? Well, say you make $60,000 to 70,000 a year. Your tax cut would be enough to fill a quarter of your Ford Ranger’s gas tank. As they’re so good at doing, Republicans don’t leave the rich out. If you happen to make more than $150,000 a year, you can buy 55 gallons of gas for your Lexus.

It’s time we recognize this “tax cut” proposal for what it is. It’s a parlor trick. They’re dropping a few crumbs to middle class families while they raise our property taxes and cut vital services like job training and basic health care just to protect rich people.

Middle class families have already sacrificed more than our fair share over the last decade. The richest Minnesotans pay a smaller share of their income than middle class families. The only way we can invest in our state and protect the middle class is to ensure the richest Minnesotans finally pay their fair share of taxes.