Friends and neighbors,
This week we learned the state’s record budget surplus grew even larger. It is up to $9.3 billion now. For comparison, in November it was $7.7 billion. It’s so big it’s almost hard to wrap your head around.
So once again we have a historic surplus. This means one thing: the government took too much from taxpayers. I have heard loud and clear from constituents that you want your money back. We have a duty to give it back and that is what the legislature is going to do with real, significant, and permanent tax rate cuts that make your paychecks bigger every single pay period.
Senate Republicans are proposing the biggest tax cut ever. We propose reducing the first-tier income tax rate from 5.35% to 2.8% and eliminating the state’s tax on Social Security benefits. Doing this would provide $8.51 billion in tax relief to taxpayers over the next three years.
If you pay taxes, every single paycheck will be bigger under our plan.
According to the National Tax Foundation, Minnesota’s lowest tax bracket is higher than the highest tax bracket in 17 other states. Under our proposal, a Minnesota family making $100,000 would see a tax savings of $1,000 every year. A typical individual making $37,000 would receive about a $500 annual reduction. Under the Governor’s tax proposal, the same family would receive a single $1000 check, and an individual filer would receive a $500 check, with no long-term savings or reductions.
Our proposal also fully eliminates the tax on Social Security and Disability Income. This is something I have worked on for as long as I have been in the Senate.
Minnesota is one of just 13 states who tax Social Security benefits and is partially surrounded by states who don’t – Iowa, Wisconsin, Michigan, and South Dakota. Estimates show for the 410,900 Minnesotans who pay this tax, the average relief would be $1,313. Eliminating the Social Security tax would put $539 million back into the hands of beneficiaries. Bills introduced to eliminate the Social Security tax in the legislature have had bipartisan support.
I am confident eliminating Social Security income taxes will pass the Senate, and I am optimistic Gov. Walz and the House will be on board.
Contact me
If you ever have any questions or feedback, or if you would like to set up an opportunity to meet, contact me any time at 651-296-5612 or sen.mike.goggin@senate.mn. It is a privilege to serve you!
Sincerely,