It was announced yesterday that Minnesota has a $17.5 billion surplus. Due to a bill that passed last week, this number accounts for inflation. Had that bill not passed, the surplus would have been estimated much closer to $19 billion.

“A $17.5 billion surplus is historic, and it is clear evidence of the constant over-taxation that Minnesota families are subjected to every year,” said Senator Karin Housley (R-Stillwater).“Families have been struggling with inflation, and now more than ever, they are looking to the Legislature for meaningful tax relief.”

House and Senate Republicans came together to respond to the surplus with the “Give it Back” tax plan, which provides $13 billion over two years in permanent tax cuts and one-time rebates.

The package includes:

• $5 billion in rebate checks
• A one-time $1,800 child tax credit available for two years
• Full elimination of the tax on Social Security income
• Reduction of the first and second tier rates by 1%
• Property tax relief through increases in homestead market value exclusion

“Our surplus is a sign of over-taxation, and not a green light to spend more of Minnesotans’ hard-earned money,” continued Housley. “We want people to raise their families here, and we want our seniors to stay through retirement. Our ‘Give It Back’ proposal focuses on combatting inflation by providing tax relief and making life more affordable. The surplus presents a unique opportunity to get this done, and I hope we can find bipartisan support on these important measures.”