Unless something is done quickly, trying to file and pay taxes will be difficult
ST. PAUL, Minn., May 24, 2018—Mike Hickey, Minnesota state director for the National Federation of Independent Business, released the following statement, today, regarding Gov. Mark Dayton’s disappointing veto of 2018 tax bill.
“The state’s major small-business group and small-business owners across Minnesota are deeply disappointed with Governor Dayton’s veto of the tax bill passed by the Legislature.
“The governor is blocking the opportunity to make significant progress on a major tax conformity issue, conforming to the federal section 179 expensing provision that is very beneficial to many small businesses and farmers who need to buy expensive equipment to maintain or expand their businesses or farming operations. The new federal annual deduction went from $500,000 to $1 million, and Minnesota is stuck with only a meager $25,000 that can be deducted on expensive equipment purchases.
“The vetoed tax bill also had other beneficial provisions for small business, such as an incremental middle class orientated tax cut, a corporate tax cut of close to one percent that is helpful to small businesses that file as c-corporations, and an important revision to the estate tax exemption for small business and farm property.
“Through his veto, Governor Dayton has denied the benefit of all these provisions to small businesses and farmers across our state, making our state, once again, less competitive.
“Governor Dayton also has left all taxpayers in the lurch by vetoing critical conformity language to the new federal tax law. Unless something is done quickly on the conformity issue, many taxpayers are going to have a difficult time trying to file and pay their 2018 state taxes.”
Celebrating its 75th anniversary, the National Federation of Independent Business is the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB annually surveys its members on state and federal issues vital to their survival as America’s economic engine and biggest creator of jobs. NFIB’s educational mission is to remind policymakers that small businesses are not smaller versions of bigger businesses; they have very different challenges in remaining open.
National Federation of Independent Business/Minnesota
380 Jackson St.
St. Paul, MN 55101