Minnesota lawmakers look to shrink estate tax

Brian Edwards

The Republican controlled House is aiming to raise the threshold of the estate tax in Minnesota — from $1.2 million to $2 million— by the end of the year, according to Minnesota Public Radio.

But many Democrats believe that the rollback of the tax will only benefit the richest in Minnesota and will put an unfair burden on the rest of the state.

“It costs hundreds of millions of dollars that could be used for a lot of other things, and it only benefits a few very wealthy people,” said Rep. Ryan Winkler, DFL-Golden Valley to MinnPost.

By 2018, the threshold would increase to $5 million and a flat tax of 16 percent would go into effect, according to MPR.

Gov. Mark Dayton criticized the Republican tax plans citing the short-sighted nature of many of their proposed tax cuts, according to the Grand Forks Herald.

Many Republicans say that raising the threshold for the estate tax is the solution to a tax that has unfairly burdened families in the state.

"To me the estate tax is a very, very unfair tax," said House Chair Greg Davids, R-Preston to MPR. "People have already paid taxes on this money. Now after they pass, the government comes and says, 'Okay you're dead, but we're going to get some more money from you.' That's just wrong. That's not Minnesota nice.”