Minneapolis City Council votes to study how to tax the rich

The Minneapolis City Council voted 10-0 to research new revenue sources, including a tax on the wealthy, as a counter to President Trump's tax legislation. Council members framed the initiative as essential for addressing poverty in the city, with Vice President Aisha Chughtai asserting that it aligns with local values. The city has faced increased property tax burdens, and Budget Director Jayne Discenza highlighted that expenses are rising faster than revenues, necessitating an 11. 2% property tax increase. This potential hike is deemed excessive by both the mayor and council members.

The council's discussions include exploring an income tax for higher earners and other diversified revenue sources, which would require state approval. Council Member Robin Wonsley criticized Trump's tax bill as a "handout" to affluent households. The growing interest in local income taxes reflects a nationwide trend in cities grappling with similar fiscal challenges. Mark Haveman from the Minnesota Center for Fiscal Excellence cautioned against potential "border effects" where residents might relocate to avoid higher taxes.