Friends and neighbors,
I have always supported providing tax relief to the hardworking taxpayers of this state, but not all tax relief is created equal. I’m carrying three bills that pull the mask off welfare programs that have been hiding inside our tax code.
The first bill stops illegal immigrants from collecting our tax dollars through refundable tax credits. Right now, people who file taxes with an ITIN — which is used when someone doesn’t qualify for a Social Security number — can get both the Child Tax Credit and the Working Family Credit. In 2023, over 10,000 of these returns claimed nearly $20 million in benefits. If you’re not here legally, you shouldn’t be getting Minnesota tax dollars.
The second bill stops these two tax credits from growing every year on autopilot. Right now, the amount of money handed out through these programs automatically increases each year due to an inflation adjustment. No review, no discussion, no votes taken. That’s not responsible budgeting. My bill ends this autopilot spending increase, saving more than $161 million this budget cycle.
Finally, I’m carrying a bill that would change the way these tax credits work at a basic level. Right now, both the Child Tax Credit and the Working Family Credit are refundable. That means if someone qualifies for the credit but doesn’t owe any taxes, the government still sends them a check — sometimes for thousands of dollars. That is not a tax break. It’s a cash handout.
My bill would make these credits nonrefundable. That means they can still lower your tax bill, but only if you actually owe taxes in the first place. No taxes owed? No check in the mail. Simple.
This is about being honest with Minnesotans. Refundable tax credits are welfare. They’re government payouts to people who didn’t earn them, paid for by people who did. When someone owes nothing in taxes and still gets a check, that money isn’t coming from thin air. It is coming out of your wallet and mine. This change alone would save Minnesota more than $1.3 billion in just two years.
Tax relief should help working Minnesotans, not fund a hidden welfare program. These credits were meant to help working families. They were never meant to become a pipeline for cash assistance to people who don’t pay in.