Elections have consequences:
Minnesotans will likely see an increase in income taxes next year after Gov. Mark Dayton vetoed a tax bill meant to bring the state tax code in line with the new federal system following a sweeping overhaul passed by the U.S. Congress last year, according to Certified Public Accountants who spoke with Fox 9.I've had an accountant handle my taxes for years. He's going to be getting a lot more business. I suspect anger is going to increase over Dayton's perfidy as more people learn what he did and we may yet get a special session. I don't think the DFL wants to run on tax increases and the pressure will increase for Dayton to do something. His handlers will eventually get him the message.
It's also going to get harder to file returns because the new federal tax code uses a different formula to arrive at your taxable income, they said, forcing Minnesotans to essentially calculate their tax return twice. The bill vetoed by Dayton this week would have simply copied the federal formula.
"I'm very concerned for the taxpayers of Minnesota," said Todd Koch, a CPA with Jak & Company. "Without any changes, it is a very rare person that would pay less and almost everybody will pay more."
In a letter to legislative leaders this spring, state Revenue Commissioner Cynthia Bauerly said the state would have to draft more than 80 pages of new income tax instructions because Minnesota isn't currently seeing any reduction in rates or an expansion in credits but the federal system is. The work for many government agencies begins now to update the state's computer system and coordinate with software vendors like TurboTax to rewrite the programs for next year.
3 comments:
Yes, but if Dayton's decisions were driven by intelligent consideration of the issues, even including political considerations, he could not have been more in error. No, the obvious answer is stupidity bordering on insanity. The man is not well.
I agree, Jerry. Which is why I think this will be going to special session. Dayton can stamp his feet, but if his tantrum looks like it’s going to cost the DFL votes, he’ll be “persuaded” to call a special session. He may be an incoherent moron, but his party is full of careerists who like their sinecures. The tax adjustment is a time bomb and the DFL apparat knows this.
So, do the folks that screwed the MNLARS pooch get first crack at rewriting the tax programs needed to coordinate with the Feds?
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