Minnesota lawmakers react to Trump tax plan

Members of Minnesota’s Congressional delegation are weighing in on President Donald Trump’s framework to overhaul the federal tax code.

Not surprisingly, Republicans are praising it and Democrats are raising concerns.

The plan would simplify the tax system, cut taxes for individuals and corporations and nearly double the standard deduction for individuals and families. But the details are left to Congress to work out later.

Republican Congressman Erik Paulsen said in a statement that Minnesota middle-class families and small businesses should be excited about the plan.

“After more than three decades since the last major tax reform, the framework released today outlines how fixing our broken tax code will lead to more jobs and bigger paychecks. Tax reform is about one thing: Restoring the hope of prosperity for American workers, their families, and, most importantly, the next generation.”

Republican Congressman Tom Emmer said the framework is a first step toward modernizing and simplifying the tax code.

“I am extremely pleased to see the new corporate tax rate target of 20 percent – something I’ve long advocated for through my CREATE Jobs Act, which will encourage United States businesses to keep their jobs and revenue here, while allowing them to once again be competitive internationally. Additionally, this plan will lead to certainty and permanency for our nation’s job creators so they can spend their time and resources growing their business rather than conforming with a complicated tax code. Lastly, I am encouraged by the focus on tax incentives such as the child tax credit, the charitable tax deduction and the home mortgage interest deduction on which the average American depends.”

Republican Congressman Jason Lewis said American families and businesses have suffered under the current tax system. He said the proposed changes will reduce those burdens.

“I want a tax code that promotes economic growth—not one that merely divvies up a shrinking economic pie. It’s time to close the tax loopholes so we can embrace good policy where everyone has skin in the game–but at much lower rates. This plan is about defending the American Dream—the right to fly as high as your wings will take you.”

DFL Congresswoman Betty McCollum criticized the plan for favoring the rich. She said in a statement that she will oppose it.

“The Republican tax framework is a multi-trillion dollar giveaway to billionaires and big corporations at the expense of working Minnesotans and Americans. It tilts the playing field to the richest few and eliminates the estate tax to benefit people like President Trump. It explodes the deficit, undermines Social Security and Medicare, and leaves working families footing the bill. In short, the Republican framework is fundamentally unfair to the American people.”

  • taxdetector

    Using my 2017 projected income data the standard deduction increase is not enough to offset the loss of the personal exemptions and State and Local taxes. As a result my taxable income increased. This pushed some income out of the estimated 12% marginal bracket and into the 25% bracket. Bottom line my taxes would go up over $300. In my view middle income taxpayers will need to see a higher 12% bracket limit to avoid a tax increase.

  • taxdetector

    Hopefully you are not filing as Head of Household. The elimination of the personal deduction hits hard.
    Your deductions totaling $13,400 (standard deduction $$9,350 + personal
    exemption $4,050) will be reduced to $12,000. A net reduction of $1,400!