Dear Neighbor,
Here’s a look at the latest notes from the House as we wrap up another busy week in the 2023 session.
Local visitors
I enjoyed meeting with city administrators from Ramsey and Andover who came to the Capitol this week to discuss local water projects. I have authored legislation (House Files 1177 and 363) to support important proposals for each city and continue working to help them reach completion.
Bill to end state SS tax
Minnesota is one of just 12 states that still tax social security benefits. With a $17.6 billion state budget surplus, and price increases straining family budgets, the time is right for a full repeal. I have authored co-legislation (HF 136) to do exactly that, providing some breathing room for seniors – particularly those on fixed incomes.
Our state’s tax structure has left many grandparents feeling like they need to move out of Minnesota. Unfortunately, this also often means moving away from their grandkids and other family members. We need to make sure Minnesota is more welcoming to seniors and we can start by ending this unnecessary tax on them. If we can’t make it happen with a nearly $18 billion surplus, when would we?
A full repeal would benefit an 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, driving away residents as our state loses far more domestic residents each year to other states than we gain. 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.”
Of course, cold winters are a factor here and there always are going to be seniors who choose to relocate to warmer locales, but let’s make it more affordable for people who want to live out their golden years right here, in Minnesota. Seniors have worked hard to establish families and a home in our state, and these Social Security dollars already have been taxed once. It’s unjust to tax them a second time and the bill I’ve co-authored would put a stop to that.
Democrats 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, they have left bills related to this subject on the back burner.
AG bill not what it could have been
A noteworthy bill came to the House floor on Monday, when Democrats voted against specifically putting money toward prosecuting violent crimes and dealing with rampant fraud.
They also rejected any accountability for how this money is used or reporting data that could help the legislature understand what requests from counties are being turned down and why.
All this and more occurred during discussion of S.F. 33, a bill to increase funding for the state attorney general’s office to assist county attorneys. It is a bill I wanted to vote for to aid county attorneys seeking assistance from the state office when high-level crime occurs in their area.
Unfortunately, the bill Democrats approved failed to include even the most simple language adding transparency. It instead amounts to a blank check to the state AG with no assurances to Minnesota taxpayers regarding how the $4.3 million will be used.
House Republicans unsuccessfully offered numerous amendments to improve the language and make the bill a bipartisan product. An amendment I offered merely would require an annual report to the Legislature on assistance requests, the response to each request and an explanation for why any requests were denied. House Democrats voted it down.
Unfortunately, this bill is highly representative of the partisanship problem we see today in the House. Not only did House Democrats refuse to work with the minority to improve the bill on the floor, but they actively made it more objectionable during the committee process.
With important amendments rejected, this bill fails to take seriously the significant challenges we are experiencing across our state regarding crime, waste, fraud, and abuse. They took a bill that had potential and eliminated specificity, resulting in looser, more partisan language and a bill which passed only along party lines.
I provided more context and details while speaking to the bill on the House floor and you can click here for that video.
Until next time, have a good weekend and please stay in touch.
Sincerely,
Harry