REP. O'NEILL: TIME FOR TAX RELIEF
ST. PAUL, MN—House Republicans held a press conference Monday calling for significant tax cuts for Minnesota families using the state’s $1.5 billion budget surplus. Senate Republicans announced their “Get Your Billion Back” tax plan earlier this year, while House Democrats and Gov. Walz have remained mum on whether they will put forward a tax cut bill this session.
“Minnesota families deserve tax relief,” said O’Neill. “It is time to return some of the taxpayers’ hard-earned money back to the people who know best how to use it. Our plan for tax relief cuts taxes for every Minnesotan, and totals $1 billion in tax relief. These proposals are widely bipartisan and should have strong support in the Legislature.”
You can watch a replay of the press conference here.
The House Republican proposal is comprised of five bills including:
- Eliminating state taxes on social security benefits. House Republicans successfully pushed to eliminate social security taxes for 250,000+ Minnesotans in 2017, this provision would finish that effort and eliminate social security taxes entirely.
- Childcare Tax Credit. Republicans are seeking to help families dealing with childcare expenses by increasing the income threshold for the dependent care credit from the current cap of $52,160 to $75,000 making thousands more families eligible for assistance paying childcare bills.
- Doubling the student loan tax credit. Greg Davids helped create the first-ever student loan tax credit of up to $500 for college graduates making payments on their loans. The House GOP proposal would double that credit to $1,000.
- Tax Fairness for Farmers and Main Street Businesses. Last session’s failure to enact full Section 179 conformity is causing massive unexpected tax bills for farmers and businesses. House Republicans are proposing to fully conform and make it retroactive so farmers and businesses are not stuck with tax bills many simply cannot afford.
- Property Tax Relief. By putting an additional $50 million into school equalization aid, this would effectively result in a property tax cut for Minnesota homeowners by reducing reliance on local property tax revenue.
- Increasing the Personal Exemption. Every Minnesotan would benefit from an approximately $1300 increase to the personal exemption.