Will Minnesota Abolish It’s Income Tax?

A bill to abolish Minnesota’s personal and corporate income tax was introduced in the State’s House of Representatives. The bill is H.F. 2716. It’s called the Minnesota Fair Tax and was introduced by House Tax Committee Chair Steve Drazkowski, Representative Abigail Whelan, and several others. The idea is to implement a broad repeal of the personal income tax and corporate franchise tax schemes entirely. The plan would also repeal the current hodge-podge of sales and excise taxes. It would replace them with a comprehensive sales tax on all consumption goods and services. The bill would be revenue neutral in that the sales tax rate will be at a rate sufficient to replace the revenue lost from the repeal of the various other taxes. This is the essence of the tax reform plan that I’ve been advocating for decades. Such a plan would greatly simplify compliance for all individuals and businesses. It would make the entire State of Minnesota a tax haven for businesses. I have been asked by the Chair of the House Tax Committee to testify before the committee, which I will do next week.