Two Very Different Approaches to Property Tax Reductions: Florida vs. Minnesota

One idea not under consideration in Florida is paying for a cut in property taxes by increasing income taxes.  Just such a measure is being discussed in the Minnesota House.  A few weeks ago, both the House and Senate passed legislation creating a fourth income tax bracket, although the rate differed slightly between the two bills.  Now a new House proposal would pay for a property tax reduction and expanded tax credits for homeowners and renters with a 9.0 percent income tax rate for single taxpayers with incomes in excess of $250,000 or married couples with incomes above $400,000.  This property-tax-for-income-tax swap would create a more progressive state tax system.  By contrast, Florida lawmakers continue to refuse to debate instituting a state income tax, depriving themselves of a powerful tool for creating a more just and equitable tax structure.