Dear Neighbors,
On Monday, state economists released the annual February budget forecast. This gives lawmakers an updated look at the financial health of Minnesota and informs the budget-making process for this year.
Monday’s report revealed that Minnesota’s budget surplus remains largely unchanged and still stands at $17.5 billion. A surplus of that size is further proof that you are being severely over-taxed by your state government.
That’s why I am excited to share that on Tuesday, we released details of our “Give it Back” tax plan. This is a package of proposals seeking to provide immediate tax relief to families coupled with proposals to continue 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 reduces 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. 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.
We should prioritize policies that promote growth, make Minnesota more competitive, and return the surplus back to you through meaningful and permanent tax relief—that’s exactly what this plan would do. While all of us deal with the impacts of historic levels of inflation, more money in your pockets and family budgets will help make things a little easier.
Staying in Touch
As always, please do not hesitate to reach out to me with any questions or concerns you may have. I can be reached by phone at 651-296-4936 or via email at rep.spencer.igo@house.mn.
Have a great day,
Spencer