Few small business owners would be impacted by income tax increases on high-income households

The Minnesota Department of Revenue recently crunched the numbers on how many households with small business income would be impacted by a new 4th income tax bracket for taxable income above $250,000 and found only 5.7% of households with small business income would be in the new higher tax bracket.

This new 4th income tax bracket is included in HF 885, which raises about $1 billion in revenue from several tax increases to help pay for schools, nursing homes and hospitals. HF 885 was passed by the legislature on Friday, and then vetoed by the Governor.

To learn more about how small businesses are taxed and the impact of income taxes on small business activity, read our just published short fact sheet on small business taxation.

-Katherine Blauvelt

About Katherine Blauvelt

Katherine Blauvelt served as the Minnesota Budget Project’s policy analyst from 2007 to 2009.
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