This week, we received word that Minnesota’s budget surplus remains largely unchanged at $17.5 billion. While the bottom-line number is the same as previously thought, February’s budget forecast accounts for inflation thanks to a bill that was passed and signed into law earlier this year. Because of that, the real number is likely closer to $20 billion in surplus.
Such a massive surplus is proof positive that you are being overtaxed.
That’s why this week, House Republicans unveiled our “Give it Back” tax relief package.
This package of proposals reflects our commitment to Minnesotans that we will do what we can to provide the tax relief that you so badly deserve.
The package includes tax changes for immediate relief today with one-time rebate checks and a one-time child tax credit available for two years. The checks are estimated to be $1250 for single filers and $2500 for joint filers. The $1800 tax credit per child under the age of 18 comes without strings attached on its purpose or use.
Permanent relief comes in the form of the elimination of the tax on Social Security to provide 472,902 Minnesotans with an average tax reduction of $1,277 dollars. The list of states that tax Social Security income shrank to just 11 in 2023.
An additional $3 billion in permanent tax relief comes in reducing both the first and second-tier tax rates by 1% each to 4.35% and 5.8% respectively. Minnesota’s lowest tax rate is higher than the highest tax bracket in 24 states and is consistently ranked one of the highest-taxed states in the country. Anyone who pays income taxes would see a reduction in their taxes under this plan.
Finally, an adjustment of the homestead market value exclusion would give $35 million a year in relief. Rising property evaluations and a tight housing market mean people need relief wherever they can get it. For many, their home is their single largest asset, and this change will allow them to keep more of their home’s value in their bank account each year.
These are common sense ways to put more money in your pocketbook and family budgets. While it will be an uphill battle to see these become law thanks to Democrats controlling the House, Senate, and Governor’s mansion, we nevertheless are here in St. Paul fighting to make sure that state government lives within its means and that you can keep more of your hard-earned paychecks.
Please do not hesitate to reach out to me to share any thoughts or concerns you may have about state government or the job I'm doing as your representative. It would be great to talk with you. I can be reached by phone at 651-296-8237 or via email at email@example.com.
Have a great day,