Senator Rod Skoe (DFL-Clearbrook) will chair the Senate’s powerful Tax Committee when the legislature convenes in January. He said the the balance between sales, income and property taxes will be examined “trying to move the state to a more progressive tax system, more reflective of having the tax as more reflective of one’s ability to pay.”
Sales and property taxes are generally considered “regressive” because they don’t rely on one’s ability to pay. Skoe didn’t offer any specifics, but when you consider all state taxes, Minnesota’s tax incidence study shows that the highest earners in Minnesota pay the lowest effective tax rates. If there are any adjustments made in taxes based on “ability to pay” it would either have to come from lowering taxes on the poor and middle class, raising them on the rich, or a combination of both.