Republicans today proposed cutting income tax rates by half a percentage point for all Minnesota taxpayers. The across-the-board rate reduction joins other Republican tax initiatives including exempting Social Security and veteran’s pensions from state income taxes and a tax credit for families with young children.

The “Family Surplus Plan” introduced by Senator Dave Thompson (R-Lakeville) and Rep. Jon Koznick (R-Lakeville) will leave $1.1 billion in the paychecks of Minnesota families during the 2016-17 biennium. If you pay income taxes, you get a tax cut.

“It’s time for families to experience some of the ‘surplus’ enjoyed by state government,” said Senator Thompson. “This plan is pretty simple and straightforward – everyone who pays income taxes will pay less.”

The average tax relief in the bill for a single income tax filer is $167 per year while the average relief for married filers is $524. The bill would impact approximately 2.25 million filers in Minnesota. The total savings for Minnesota taxpayers is $1.1 billion in 2016-17 and $1.8 billion in 2018-19.

“Through my business experience working with families and their budgets, I recognize the importance of helping families and individuals keep more of their hard-earned income,” said Koznick. “This plan accomplishes this goal.”

New income tax rates under the plan would save workers in the lowest tax bracket over 9% on their state income taxes:

“Senate Republicans have now proposed almost $2 billion of tax relief during the 2015 session,” added Senate Republican Leader David Hann (R-Eden Prairie). “While Gov. Dayton and the Democrats take a dollar from you and give you a dime back, Republicans won’t forget the state surplus came from taxpayers who now deserve some relief.”

The 2015 Senate Republican Tax Relief Plan:

• Family Surplus Plan – $1.1 billion

• Toddler Tax Credit – $500 million

• Saluting Service Tax Reductions – $48 million

• Retire in Minnesota Act – $122 million