ST. PAUL - Minnesota's economic experts continued to express optimism in the latest budget forecast that was unveiled on February 27, projecting that Minnesota now has a $17.5 billion budget surplus. State Representative Paul Torkelson (R-Hanska) noted that this is the remaining amount after the economists subtracted the $1.6 billion in new spending that Democrats have already approved, as well as inflation which totals roughly $1.42 billion.
“Anyone who has visited the grocery store and gas station or has paid their electric and heating bills recently has been negatively impacted by skyrocketing prices,” Torkelson said. “Minnesotans must be able to keep more of their paychecks, and lawmakers can make that happen by approving significant and permanent tax relief policies."
According to the Minnesota Management and Budget Office, higher collections this fiscal year and higher profits raised the individual income and corporate franchise tax forecast.
On the heels of this budget news, Torkelson said House and Senate Republicans unveiled a “Give It Back” tax relief package this week that provides $13 billion over two years in tax relief.
The top highlight of the plan is the elimination of the tax on Social Security benefits for all of Minnesota’s senior citizens. The plan would also create a one-time child tax credit that would be available for two years. The first and second tier tax rates would also be cut by 1% each to 4.35% and 5.8% respectively, and an adjustment of the homestead market value exclusion would give $35 million a year.
“Providing significant and permanent tax relief will make a difference in the lives of Minnesotans,” Torkelson said. “This updated forecast proves state government continues to collect far more than it needs from its taxpayers, and the time for tax relief is now.”