Senator John Marty: On Tax Day, Legislators Propose Closing Overseas Tax Loopholes
Saint Paul, MN – As Minnesotans file tax returns today, a bill authored by State Representative Frank Hornstein, (DFL – Minneapolis) and State Senator John Marty, (DFL-Roseville) calls attention to the fact that some Minnesota companies shelter approximately $55 billion in foreign profits. Rep. Hornstein and Sen. Marty are introducing legislation in step with Governor Dayton’s tax proposal, which would fairly tax corporate foreign income by conforming to the recently enacted federal Tax Cuts and Jobs Act. Hundreds of millions in incoming revenue would then be deposited into the State General Fund.
“In a well-functioning society, everyone contributes to the cost of our shared needs,” said Sen. Marty. “The legislation I am introducing with Rep. Hornstein will bring greater fairness to our tax system and make sure big corporations contribute to our shared success.”
“Re-directing this money to the General Fund helps ensure our schools, healthcare and infrastructure are taken care of and protected for the future,” said Rep. Hornstein.
The Minnesota Department of Revenue estimates that Rep. Hornstein and Sen. Marty’s bill will yield approximately $650 million over the next four years. Minnesota House Research analysis from 2010 estimated that Minnesota was losing $12 to $14 million per year as a result of artificial income shifting to overseas corporations.
“It’s simply not fair for large profitable multinational corporations to skimp on paying taxes, when hardworking Minnesotans are shouldering a disproportionate burden,” Rep. Hornstein stated.
The bill will be formally introduced on Wednesday, April 18, 2018.