ST. PAUL – State Rep. Chris Swedzinski, R-Ghent, has authored legislation to fully repeal the state tax on Social Security, providing some breathing room for seniors – particularly those on fixed incomes.
Swedzinski said Minnesota is one of just 12 states that still tax social security benefits. With a $17.6 billion state budget surplus, and price increases in straining family budgets, Swedzinski said the time is right for a full repeal. He is co-authoring H.F. 701 to make it happen.
“It’s unconscionable for our state to unnecessarily tax our seniors, regardless of their means, in order to fund pet projects for the Democrats,” Swedzinski said. “It’s unfair to our seniors that we continue taxing money that already has been taxed once and it’s time for our state to stop. Our state has a surplus of around $18 billion, a clear indication Minnesotans are over-taxed. Eliminating the tax on Social Security should be our top priority as we look to restore balance.”
Swedzinski said a full Social Security tax repeal would benefit and estimated 473,000 people with an average tax savings of $1,276. In contrast, Gov. Tim Walz’s budget proposal doesn’t fully repeal the state Social Security tax, with only 43% of Minnesotans receiving some form of relief – on average, $278 per household.
Minnesota’s tax structure is unfriendly to retirees, Swedzinski said. Reports indicate Minnesota loses vastly more domestic residents to other states than it gains. Business and personal finance publisher Kiplinger lists Minnesota among its “not tax-friendly” states for retirees, indicating, “The North Star State offers cold comfort on the tax front to retirees.”
Swedzinski acknowledged cold winters play a role in Minnesota’s migration patterns, which he said simply underscores the importance of improving our state in areas the Legislature actually can control.
“Democrats keep saying the state can’t afford a full repeal of this tax, which is a completely backward way of looking at how much money the state takes from taxpayers,” Swedzinski said. “On top of that, every person who migrates from our state results in Minnesota losing all of their potential tax revenue, not just from Social Security tax. Our state needs to position itself as a better place for people to live out their golden years and that starts with improving our tax structure.”
Democrats, Swedzinski said, signaled they were all-in for a repeal of the Social Security tax last fall but now, more than a month in to the 2023 session, bills related to this subject have been relegated to the back burner in the House.
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