Today, the Minnesota Senate Republican majority announced a tax cut plan that ultimately returns the state’s estimated $1.3 billion budget surplus back to taxpayers. The multifaceted plan includes a series of tax cuts aimed at benefitting low- and middle-income earners and families.

“We have a budget surplus, which means the state collected too much from its taxpayers. With our fully funded budget reserve, I believe this presents a good opportunity to give that money back to the people of Minnesota,” said Senator Bill Weber (R-Luverne). “We are among the highest taxed states in the nation and Minnesotans are definitely feeling the burden. By making investments in income tax cuts, eliminating Social Security taxes, full Section 179 conformity, and more, we can finally provide Minnesotans some relief.”

The proposal includes more than $1 billion in total tax cuts, including:

• A reduction to the lowest income tax rate, which would be the second consecutive year of income tax rate cuts;
• An expanded K-12 education tax credit, targeting more families with school-age children;
• Completely eliminating the income tax on Social Security benefits, bringing Minnesota in line with the other 37 states that do not tax Social Security benefits as income;
• Full conformity with Section 179 of the federal tax code, allowing farmers and small business owners to deduct large equipment purchases;
• Expanding the Angel Tax Credit, providing greater incentive to invest in Minnesota companies;
• Reforms to school equalization aid, providing more money to school districts with less property wealth and bringing property tax relief to all property owners in these districts;
• Reallocating more mortgage and deed tax revenue to affordable housing programs;
• Property tax classification and rate reductions, allowing more people to realize the dream of homeownership; and
• Reforms to charitable gaming rules, allowing local charities to invest more money in their communities. 

The legislation awaits consideration by the Senate Committee on Taxes.

Senator Bill Weber represents Cottonwood, Jackson, Lincoln, Lyon, Murray, Nobles, Redwood, and Rock counties in the Minnesota Senate. He serves as chair of the Senate Agriculture, Rural Development, and Housing Policy Committee.