Despite a multibillion-dollar deficit, House Republicans want to lower income taxes by about $221 million and give an array of modest tax breaks to companies and investors.
The GOP also proposed giving tax breaks to companies that donate food, according to details in a plan released Saturday night.
In a letter to constituents, House Speaker Kurt Zellers said the party's budget targets show it is honoring a campaign pledge to ensure the state lives within its means.
"We balance the budget without raising taxes because we know the decisions we make today have an impact on families, businesses and Minnesota's future," the Republican from Maple Grove said in the letter.
Republicans want to reduce taxes for those who invest in research and development and cut nearly $50 million in taxes for owners of commercial and industrial properties.
Republican legislators unveiled the plan as the state faces a $5 billion deficit in the next two years. So far, the GOP cuts deepest into to aid for local governments and agencies that help low-income Minnesotans. They also want to reduce the tax rebate for residents who rent apartments or homes, which will save the state about $118 million.
Republicans did slip in one tiny proposed tax hike on chewing tobacco, which would raise about $18 million over two years.
Legislators will take their first full look at the proposal during a committee meeting Monday morning.
The GOP outline sets up a stark contrast to DFL Gov. Mark Dayton, who wants to balance the budget in part through steep tax hikes on high earners.
Dayton has also insisted on not reducing aid to cities and counties, which lost millions of dollars in state aid in the past few years.
To read the full outline, go here.
