MN Dept. of Revenue: GOP's tax bill results in "more regressive overall tax system"

The Minnesota Department of Revenue has ran the numbers on the Republican House tax bill and have dubbed it "regressive," citing many ways it rests the enormous budget deficit on the backs of middle-class Minnesotans. According to the department, the plan would have the following impacts:

• Increase property taxes by $859 million over the next three years as a result of local aid reductions and, if combined with the reductions in property tax refunds paid to renters, would total $1.2 billion of increased property tax and reduced property tax relief over the next three years.

• The reduction in the proportion of rent assumed to be property tax for renters from 19% to 12% will make the tax system more regressive. The proposal will reduce the total amount paid in refunds by about 50%, dropping the average refund paid by $300 from $643 to $343. Approximately 38,000 renters, or about 12% of recipients, would no longer receive a refund.

• Net property taxes would increase for all classes of property, including farmers, homeowners, and businesses. Business taxes would increase $63 million statewide next year despite the proposed reduction in the statewide business levy.

• Property taxes would increase by an estimated 4.3% statewide, including 3.7% in the metro area and 5.3% in greater Minnesota

The entire letter can be read here: http://www.scribd.com/doc/51735537/MnDOR-Letter