1. 2018 Chamber Priorities: Business tax reform
Protection from labor mandates
Health care –pricing & independent commission
Transportation
Workforce & affordability

2. Includes regional data
Tax Competitiveness

3. Reducing Taxes
The two most important taxes to reduce are individual income tax and corporate income tax
Other Taxes to Reduce
All (2)
Pass Through Tax (2)
None (2)
Business Taxes (2)
501c3 Food Tax (1)
Q: Which of the following is the most important tax the state legislature should try to reduce to help improve the Minnesota Business Climate?

4. Tax Goals/Principles:
Federal tax reform $$ used to improve Minnesota tax competitiveness
Budget Surplus $$ used for tax relief
Priority on reducing corporate and individual tax rates
MN conforms to majority of tax provisions
Protect gains from 2017 tax bill

5. What is impact federal tax bill?
MN must pass bill to conform
Tax increases of $463 million 18/19 & $1.1 billion 20/21 on Minnesotans
Winners & losers
½ is corporate tax increase
SALT cap of $10,000
Repeal personal exemption/large families

6. What Hearing from Members:
Priority on rate reductions both corp & individual
If cannot get rate reductions then conform to 20% pass-through
Conform to Section 179 but not bonus depreciation
Don’t adopt foreign income provisions

7. Corporate Rate Reduction
1% rate reduction from 9.8% to 8.8%
Moves MN from 3rd highest to 8th highest, below CA
Revenue impact is $212 million biennium
Individual Income Tax Rate Reduction
3/10th rate reduction all 4 rates
Revenue Impact is $1 billion biennium
MN remains 3rd highest for top rate