Friends and neighbors,
On February 27, we received a report on state finances that will guide those decisions. That report is creatively called the February revenue forecast, and it showed that Minnesota has a $19 billion surplus. Even after factoring for inflation, the surplus is still a staggering $17.5 billion.
Minnesotans are overtaxed. Every day I get calls and emails from folks around the district who are being squeezed by inflation. Everything is more expensive, from gas to groceries to energy to clothes. People’s household budgets can’t take any more.
The day after the surplus, Republicans unveiled our plan to Give It Back. Your hard work built the surplus; you should get it back.
Our plan is pretty straightforward:
- Eliminating the Social Security benefits tax – our plan fully, completely eliminates Minnesota’s double tax on Social Security benefits. We are one of only 11 states that still has this tax on the books.
- Permanent income tax cuts – our plan provides permanent, ongoing tax relief to working Minnesotans by lowering the first and second tier income taxes rates.
- Child tax credit – our proposal helps young families by expanding the child tax credit for children under 18, so families can keep more of the money they earn.
- Property tax relief – We propose increasing the homestead market value exclusion, so more property owners can qualify for tax relief on their homes.
- Direct rebates – We want to put money directly in your pocket as fast as possible, so we propose one-time rebate checks. The checks are estimated to be $1250 for single filers and $2500 for joint filers.
The Democrats’ agenda for the surplus
Unfortunately, Democrats appear to be ready to spend the entire surplus, so taxpayers probably shouldn’t get their hopes up for any real relief to help with soaring prices. Their approach is spend, spend, spend.
The governor proposed a state budget of more than $65 billion. His plan is extremely expensive and extremely divisive. It grows our state budget by more than 25%, and sets our state on a path for massive growth in bureaucracy, includes more controversial and divisive legislation, billions of tax hikes, and will inevitably lead to higher taxes in the future.
While Minnesotans struggle with high costs of daily life, Gov. Walz and Democrats are pushing:
- A $1.2 billion new payroll tax on employees and employers to fund their paid leave mandate
- A $349 million transportation tax in the metro
- A $1.3 billion capital gains tax, which would give Minnesota the highest capital gains tax in the nation
- A $36 million gross receipts sales tax on cannabis.
And more, including outdoor parks and rec fees and license tab increases.
These are two sharply different plans for Minnesota. Our plan puts you and your family first by sending the surplus back to you. Democrats’ plan prioritizes government spending, bureaucracy, and their extreme base.
Stay tuned. I will continue to advocate for real, significant tax relief instead of more spending to grow the already-bloated government bureaucracy.
Contact me
I love hearing your feedback. If you have any questions or comments about the issues we are working on, please contact me anytime. My email is sen.glenn.gruenhagen@senate.mn, or you can call me at 651-296-4131.
Don’t forget to follow me on Facebook: https://www.fb.com/SenatorGlennGruenhagen.
It is a privilege to serve you. God Bless.