Daily Digest: Talk turns to taxes
Good morning, and welcome to Monday and the start of another work week. Here's the Digest.
1. New tax law doesn't necessarily mean a tax cut. The Republican tax law signed by President Trump in December is often referred to as the GOP tax cut, and it's true that most Americans are getting more money in their paychecks because of tax table changes. But it is also true that the tax cuts pushed by Republicans are jacking up 2018 taxes for millions of Americans. "It's going to be super unpleasant," said Northfield certified public accountant Ann Etter, who's also a spokesperson for the Minnesota Society of CPAs. "There are going to be a whole lot of people who are going to end up owing next April, and I'm nervous for the pain." Etter said it's difficult to say exactly whose taxes are going up because so many factors are in play. "I didn't see a pattern among income. I saw a pattern with the types of deductions you take. I saw a pattern with, in some cases, the type of income you have. And I definitely saw a pattern with the children you have and the ages they are." (MPR News)
2. House Republicans propose a state tax cut. State House Republicans released a plan Saturday to cut the second-lowest income tax bracket from 7.05 percent to 6.75 percent by tax year 2020, which if passed into law would be the first income tax rate reduction in Minnesota since 2000. The House GOP tax plan — which also includes a higher standard deduction for more tax-free income and an increase in the allowable property tax deduction — comes in response to the federal tax overhaul passed last year that will have a significant impact on Minnesotans unless the Legislature acts. "Federal tax reform presented a significant opportunity to simplify our state tax code," Rep. Greg Davids, R-Preston, said in a Saturday news release. "House Republicans' goal from the onset was holding as many Minnesotans harmless as possible and preventing headaches for filers next year." (Star Tribune)
3. Endorsements in the 1st Congressional District. Republicans endorsed Jim Hagedorn, while Democrats endorsed Dan Feehan to run for the southern Minnesota seat DFLer Tim Walz is leaving to run for governor. Feehan is a former Army Ranger and former Defense Department official from Mankato. He won the DFL endorsement on Saturday over several other candidates, including former state Sen. Vicki Jensen, renewable energy lawyer Joe Sullivan and attorney Rich Wright, who also has a military background. "I am incredibly honored and proud to earn the DFL endorsement for Congress here in the 1st District," Feehan said. "We are running a campaign that puts people over politics, and that offers solutions to our toughest challenges — from health care and climate change, to building an economy that works for all Minnesotans." Hagedorn is a former federal employee from Blue Earth who narrowly lost to Walz in the 2016 election. He won the endorsement over state Sen. Carla Nelson; Nelson has said she plans to run in the Aug. 14 primary. (MPR News)
4. Lewis and Craig endorsed for rematch in 2nd District. First-term Republican Congressman Jason Lewis won a close race in 2016, and he expects his rematch with Democrat Angie Craig this fall to be another nail-biter. “The Democrats are energized. There’s no question it’s going to be a tough race,” Lewis said Saturday after 2nd District Republicans unanimously endorsed him at their convention at Lakeville North High School. He said he’s running to “leave this place and this country a little better than I found it. … I think we’re starting to do that, and I want to continue that job.” The former conservative radio talk show host will have to bust his chops to keep his office. After defeating Craig by less than 2 percentage points two years ago, he is a top target for national Democrats who see unseating him as key to taking control of the U.S. House. Three congressional handicapping outfits rate the seat as a tossup. “I’m not surprised that key party loyalists endorsed sending Jason Lewis back to Washington today,” Craig said Saturday in a statement. “He’s been a staunch supporter of radical-right wing members of Congress at the expense of hardworking Minnesotans, and he has refused to listen to his constituents or hold public town halls back home.” (Pioneer Press)
5. Proposal would make big change in sexual harassment law. A proposal from House Republican Majority Leader Joyce Peppin would add a single new line to the Minnesota Human Rights Act’s definition of sexual harassment: “An intimidating, hostile, or offensive environment does not require the harassing conduct or communication to be severe or pervasive.” That language would nullify in the state a decades-old “severe or pervasive” legal standard used by judges to determine if any sexual harassment case could be actionable — or even heard — in court. In all workplaces, employees have the opportunity to take a sexual harassment claim to court through the state’s human rights act or the federal Equal Employment Opportunity Commission. And many want to, especially if they feel they were harassed and unfairly terminated or didn’t agree with the findings of their human resources department. But appeals in the courts often end before they even begin, Peppin said. “Lawyers talked about how they would have potential clients and they would outright tell their clients, ‘Well this isn’t enough, this is not going to even be a case,’” said Peppin, R-Rogers. “The severe or pervasive level makes it nearly impossible, if not impossible. We were pretty shocked by some of the cases that we read of harassing behavior that happened and there was no opportunity for someone to have their day in court.” (MinnPost)
Create a More Connected Minnesota
MPR News is your trusted resource for the news you need. With your support, MPR News brings accessible, courageous journalism and authentic conversation to everyone - free of paywalls and barriers. Your gift makes a difference.