Dear Neighbors,
Thanks to everyone that came out to our recent town hall meeting in Oak Grove! It was great to chat with you and discuss your priorities for the 2023 legislative session. I encourage all of you to reach out to me or my office to continue sharing what’s important to you and your family. My contact information can be found below.
Updated Budget Forecast and Tax Plan
On Monday, we received word from state economists that our budget surplus has remained largely unchanged and still stands at $17.5 billion. The real number is likely closer to $20 billion, but because inflation is now required to be factored into the forecast, the official surplus is $17.5 billion.
Once again, a surplus of this size is proof that you are being overtaxed and that Minnesota government has over-collected from taxpayers. That’s why I continue to advocate for returning the surplus back to you through permanent tax relief.
I am excited to share that on Tuesday, House and Senate Republicans released our “Give it Back” tax plan. This is a package of proposals that provide immediate relief as well as policies aimed at continuing the relief into the future.
Here are the details:
- One-time rebate checks and a one-time child tax credit are 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 to its purpose or use.
- Elimination of the tax on Social Security benefits 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.
- 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.
This is about making sure that you can keep more of your hard-earned money. You deserve it, and I will keep fighting to make tax relief a reality for all Minnesotans.
Staying in Touch
Don't hesitate to contact me if you have any questions, concerns, or ideas on ways to improve state government. I can be reached by phone at 651-296-4237 or via email at rep.paul.novotny@house.mn.gov
Have a good day,
Paul