ST. PAUL, Minn. (AP) _ The Minnesota House has passed a bill matching the state's tax code with new federal tax cuts.

The GOP-backed proposal that cleared the House Monday includes modest income tax rate cuts for more than two million Minnesotans and a slight increase to the standard deduction. But it would also cause slight tax increases for some 148,000 Minnesotans.

It's just the first step as lawmakers try to match Minnesota's taxes with the breaks passed by Congress late last year. With no action, some residents will encounter steep tax hikes and a logistical nightmare come next year's tax filing season.

Rep. Greg Davids, chairman of the House Tax Committee, says failure to pass a tax bill this session will be a "disaster.'' The Senate plans to release its own proposal on Tuesday.