Last week, Governor Dayton issued proposed tax cuts of $616 Million. The tax cuts are aimed at middle class Minnesotans and businesses. The proposed tax cuts include simplifying the state estate tax and eliminating the state gift tax. The estate and gift tax proposals would yield $43 Million in tax relief for Minnesotans. The proposals are as follows:
Eliminate the Gift Tax
The Governor proposes to eliminate the Minnesota gift tax in order to be more competitive with other states. Only one other state has a gift tax.
Simplify the Estate Tax
The Governor proposes to simplify the estate tax and increase the exemption from $1 million to $2 million. This would be the first exemption increase in over a decade. The current proposal does not address the concept of portability.
