The T Word: Senate Taxes panel tinkers with omnibus bill before party-line vote

After hours of testimony today, the Senate Taxes Committee passed an amended version of its omnibus bill on a 9-4 party-line vote.

The bill, sponsored by Senate Taxes Chairman Tom Bakk (DFL-Cook), passed with the $2.2 billion income tax increase that was first unveiled on Tuesday morning. But the committee moved some money around in the final hours of debate.

One change is being dubbed the Greg Copeland amendment. Copeland, a former Maplewood city manager and one-time Republican state Senate candidate, gave an impassioned speech to the committee in favor of conforming with federal tax law that exempts the first $2,400 of unemployment insurance from income taxes. The exemption is one-time money and a component of President Obama’s stimulus package. Copeland said unemployment insurance is part of the government’s safety net to help those who are struggling financially in the wake of getting laid off.