What Does $650 Million In Tax Cuts Mean For you?
ST. PAUL, Minn, (WCCO) -- Republicans were able to get $650 million in tax cuts pushed through in the state budget.
But you may be wondering what do those cuts mean for me?
Remember "Jesse Money?" It was the turn of the century, and then Governor Jesse Ventura.
But don't expect a repeat. Speaker of the House Kurt Daudt explained.
"We're not mailing out checks to people. People will get a tax credit or rebate on their next tax filing," Daudt said.
House Speaker Kurt Daudt has been working on the cuts for months. In April, he addressed the press.
Read More: Lawmakers Largely Absent From 1st Day Of Special Session
"We want to make sure we put money back in the pockets of Minnesotans," Daudt said.
Democrats have been resisting. In late April, Senate Minority Leader Senator Thomas Bakk said, "So I just don't know where they have any leverage with the governor to get a totally irresponsible tax bill into law."
In the end, they agreed on $650 million in cuts.
Rep. Daudt told WCCO after the agreement, "I think that this will impact most Minnesotans, not everybody's going to feel it but most Minnesotans."
"The biggest thing that I am most proud of this year is beginning to phase out the income tax on social security, this is a big step that's really going to have a big impact on Minnesota seniors. A lot of those folks are living on a fixed income and we believe those folks deserve to be able to keep that money," Daudt said.
The cuts also effect childcare, school loan re-payment and small business owners, especially farmers.
Here is a breakdown of the cuts from Daudt's office:
By the Numbers:
- Under this proposal, nearly 284,000 senior citizen tax returns (single and married filing jointly) would receive tax reductions; 72,000 of those would no longer pay state income tax on their benefits.
- A family of four making $50,000 a year will receive an additional $1,200 towards their child care expenses
- 65,000 students will receive an average of a $414 reduction in their taxes through a tax credit for student loan payments
- Providing relief from an "extra" business tax (statewide general tax) will assist EVERY Minnesota small business owner
- 240,000 farmers could receive property tax relief to reduce their disproportionate share of school district debt service.
