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Legislative News and Views - Rep. Greg Davids (R)

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DON'T STOP BELIEVIN' – TAX RELIEF IS ON ITS WAY

Thursday, April 30, 2015

After two years of massive tax increases enacted by a Democrat-led state government – moves that hurt hardworking Minnesotans in every tax bracket - some residents I talked with had simply given up hope.

With Governor Dayton returning to the Capitol for another four years, they had simply resigned themselves to more of the same: increased government spending and increased taxes on all Minnesotans.

These folks wanted government to take less of their paychecks, not more. I would remind them that Republicans now controlled the Minnesota House and we would take a different approach to taxation in 2015. I would point out that we would prioritize their pocketbook and not increase their tax burden. And, to quote a famous Journey song, I would tell them: "Don't stop believin'."

With the recent unveiling of the House Republican Omnibus Tax bill, we have proven that government can survive without raising your taxes every year, and we have prioritized giving you some much needed tax relief.

If you are a college student, veteran, aging adult, farmer, job creator, or simply a hardworking taxpayer in a middle class family, you will be pleased with the tax relief provisions contained in this legislation.

The most significant part of the package – a new Minnesota personal or dependent tax exemption – could save a middle-class family of four more than $500 over the next two years. This provision alone could provide more than two million Minnesotans with tax relief.

366,500 senior citizens who are living on fixed incomes would also benefit as our proposal would finally phase-out the tax on social security.

If you're one of the 240,000 farmers who are paying a disproportionate share of school district debt service, you'll likely be pleased that this legislation would substantially reduce your tax burden.

130,000 families could receive relief through the expansion of the education deduction to include pre-kindergarten expenses.

College students should take note that they could receive student loan debt relief through a new tax credit for principal and interest loan payments on student loans. An estimated 109,500 students would qualify.

The legislation also would help Minnesota’s border communities by working toward restoring competitiveness with neighboring states by giving tax reductions to border city enterprises.

These are just the major highlights of the bill, as there are literally dozens of other provisions in our comprehensive tax proposal that would benefit hardworking Minnesotans.

As Minnesota House Speaker Kurt Daudt often says, the new House Republican majority has listened to Minnesotans and worked toward solutions that bring government spending more in line with family budgets. Minnesota's government is doing just fine when it comes to collecting and spending your money, but most hardworking families don't see pay raises that even come close to the level state government expects every two years.

So it boils down to a basic philosophy. Do you want a bigger government or do you want the people of Minnesota to make a decision about how they spend their money?

House Republicans are listening to you. Our budget makes a substantial investment in education and nursing homes and adds more money to our rainy day fund. It put $7 billion into roads and bridges without raising gas taxes by 16 cents per gallon. And it provides significant tax relief to middle class Minnesotans.

Some said it couldn't be done. I say: "Don't stop believin'."