Tax Bill Votes Set Up Showdown With Governor

May 16, 2018 - 6:37 am

ST. PAUL, Minn. (AP/WCCO Radio) - The Minnesota House has passed its bill squaring state taxes with the federal government.

Republicans made the sudden move Tuesday, testing Gov. Mark Dayton's resolve over taxes. Dayton vowed Monday he would not sign a so-called tax conformity bill until lawmakers provide $138 million in emergency funding to 59 Minnesota schools suffering budget shortages.

“(Republicans) have enough money for another $200 million in tax giveaways to multi-national corporations for foreign profits,” Dayton said Tuesday. “This is not income, this is profits. We’re not going to make them pay taxes on profits? It’s just unbelievable to me that we’re even having this debate.”

But the Republican House and Senate are sending Dayton the bill anyway. The House passed its bill Tuesday on a 78-50 vote, and the Senate was expected to follow suit Wednesday.

Senate Majority leader Paul Gazelka on with Dave Lee on the WCCO Morning News Wednesday says the governor's request is "extremely difficult to do" this late in the session, but he’s feeling optimistic.

“If we can keep that as part of this process so that we have respect and honor for each other, I think we can get to the finish line,” he said.

The GOP's plan to modestly cut income tax rates is drastically different than Dayton's proposal. The two sides have until Sunday night to strike a deal.