Dear Neighbor,
Greetings from the Capitol, where this week the House passed a pair of bills to pay for infrastructure projects around the state, including a $1.5 bonding bill and $392 million in cash.
While I had concerns about both of these bills and voted against them, I have just as many concerns after the fact, now that these bills are in the hands of the DFL-controlled Senate. The upshot is legislation completely ending the state tax on Social Security – along with other important forms of tax relief – must receive stand-alone approval in the Senate before votes on bonding take place. Here’s why that’s so important:
Let’s just say a bonding bill were to pass the Senate right now, with a handshake deal that Senate Democrats would bring forward bills to end the Social Security tax and deliver other tax relief later this session. Now, let’s jump ahead to the final days of the session in May, and here come those provisions for tax relief, just as Senate Democrats promised! Except for one thing: They are lumped into a massive omnibus tax bill that actually raises taxes by an estimated $1.78 for every $1 in cuts.
Democrats would have gotten the bonding bills they wanted but, in this very plausible scenario, Republicans would have to either vote for a tax increase to get Social Security relief, or vote against the ending Social Security tax to prevent tax increases.
This hypothetical situation would be government at its worst and that’s why we need to make sure it does not become reality. Tax relief – especially ending the tax on Social Security – needs to receive stand-alone approval and must not be the subject of partisan gamesmanship by the majority.
All that said, it really shouldn’t be that hard for the legislative majorities to end Minnesota’s status as one of the last few states to tax Social Security. Our state has a $17.5 billion surplus – $19 billion without factoring for inflation as Democrats did, effectively suppressing the dollar amount in the most recent economic forecast. On top of that, we’ve restored our state reserves and replenished the unemployment insurance account that was drained during the pandemic – all in a relatively short amount of time.
The state has the money. Let’s deliver the tax relief Minnesotans need and deserve in stand-alone legislation.
On a separate subject, public safety was a major focal point of discussions last summer and fall with bipartisan support expressed. Now that we are at the midpoint of the 2023 session, it is disappointing to see nothing of substance has been accomplished to support law and order. Rates of violent crime remain abnormally high in the metro area and beyond, but the House majority seems more focused on reducing punishment for criminals than cracking down on violent crime and stopping the revolving doors for repeat offenders.
Meanwhile, House Republicans have been working on a Safe and Sound Minnesota plan that focuses on confronting crime, supporting law enforcement, and increasing transparency in our court system to help stop the revolving door for repeat offenders. Watch for more details on this issue soon.
Until next time, have a good weekend, please stay in touch and let me know how I can help.
Sincerely,
Shane