Minnesota House passes tax bill with $3B in tax cuts, credits for low- to middle-income residents
ST. PAUL, Minn. -- The Minnesota House on late Thursday evening passed a tax bill that's a major win for the DFL.
It's roughly $3 billion in tax cuts and credits over the next few years for low and middle income Minnesotans.
The 300-page bill includes rebate checks, property tax relief, social security tax savings and credits that help working families struggling to afford high costs. Supporters of the bill say it's the "largest tax cut in state history" due to those factors.
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"The House DFL budget invests in Minnesotans' priorities of education, health care, economic security, and the safety and vitality of our communities," House Speaker Melissa Hortman said. "With much of the surplus being one-time money, investing in these areas now and into the future requires an ongoing commitment. We're proposing to make the tax code more fair and more progressive to provide sustainable funding for education, health care, transportation, and so much more."
Republicans have been pushing for the full repeal of the state tax on social security. This plan doesn't do that, but increases the number of seniors who wouldn't pay anything to the state on those benefits.
"We have a $17.5 billion surplus and that needs to be returned to Minnesotans. We need to do the right thing for the residents of Minnesota. Unfortunately this tax bill doesn't look like we are headed in that direction," Republican House Minority Leader Rep. Lisa Demuth said.
There's also a new tax increase on the wealthiest Minnesotans in the state.
The Senate's plan is congruent, but not identical. Both chambers will work out their differences before the session ends in about three weeks.
