LARGE SURPLUS PAVES THE WAY FOR MAJOR TAX RELIEF FOR SMALL BUSINESS
St Paul (February 27): Today the state’s largest small business group, the National Federation of Independent Business (NFIB) urged law makers to use the surplus to FINALLY conform Minnesota’s estate exemption to the Federal. Currently, the Federal exemption is $5.43 million per person and Minnesota is phasing into a $2 million exemption in 2018. The House bill fully conforms to the Federal exemption and the Senate bill comes up just shy of the $5.43 million threshold.
“Both the House and the Senate have heard significant legislation on this issue and this is the year to finally get it done.” said NIFB Minnesota State Director Mike Hickey, “A significant amount of this large surplus should go to tax relief. After increasing spending significantly in the 2014-2015 budget (11.7%), the time for tax relief is now.”
It was recently reported that 92% of the state’s businesses have a flow through designation that file and pay their companies’ taxes on the individual income tax.
“We are also urging legislators and the governor to enact a targeted income tax cut for flow through companies. Virtually all small businesses are flow through entities now (Sub-S, LLC).” Continued Hickey, “Income taxes are especially high in Minnesota and the 10% cut in taxable income contained in HF 1 or another relief measure would be very welcome”
