ST. PAUL – A plan that would reduce taxes on Minnesota’s families and businesses by more than $1.35 billion over the next two years has been sponsored by State Representative Greg Davids (R-Preston).
"This is a strong bill that recognizes the need to provide significant tax relief to hardworking Minnesotans,” said Davids, chairman of the Minnesota House Taxes Committee. “From a family with a newborn attending daycare to senior citizens trying to enjoy their retirement, House Republicans have prioritized middle class Minnesotans in all age groups and want them to keep more of their hard-earned money.”
Davids noted that well over half of the proposal is targeted to middle class Minnesotans. Highlights of the bill include:
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$269 million in relief for Minnesota’s senior citizens by increasing the income limit at which social security income is taxable
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More than $125 million to address college affordability through a first-in-the-nation tax credit for student loan payments, along with subtractions and credits for families saving for college using 529 Savings Plans
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$42 million in relief for farmers by reducing the burden farmers and agriculture land owners pay for school bond referendums
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$35 million for families with young children by modifying the child & dependent care credit
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$203 million in relief for Main Street businesses by exempting the first $200,000 in property value from the extra tax on businesses and freezing its automatic inflator
Davids, who chairs the Minnesota House Taxes Committee, has titled the proposal the ‘Come Together’ tax relief plan, which is loosely based on Beatles song.
“For the past several years I have given names to the various tax relief proposals,” Davids said. “Since we’ve had difficulty getting Governor Dayton to agree to provide tax relief to middle class Minnesotans, I’ve chosen ‘Come Together’ in hopes that we can all join forces and finally do what’s right for the taxpayers who created our $1.6 billion surplus.”
Davids said the House Taxes Committee will hold public hearings on the bill this week, with a floor vote expected in the coming weeks.