MN HF2428

Commissioner of revenue shall study and prepare a report on options for replacing the individual income tax with a flat tax on income or consumed income.

All flat tax options studied must be revenue neutral and include a generous exemption amount, an adjustment for family size, and a single tax rate.

Report must include minimum options that follow existing taxable income definitions, expand the tax base by eliminating exemptions/deductions/credits, and adopt a consumed income tax base.

Report must evaluate options using basic tax policy principles and include information on changes to income distribution of tax burdens.

Report due January 3, 2017, to house and senate tax committee chairs and ranking minority members; an unspecified amount from the general fund appropriated in fiscal year 2017 for the study as a one-time appropriation.