Friends and neighbors,
Inflation continues to soar and negatively impact all aspects of a family’s budget. And troublingly, grocery prices rose 13.5% in August – the highest increase since March of 1979. Further, 85% of Americans have said it’s become necessary to change their spending habits due to inflation, with 70% of Americans looking for extra work to combat rising costs.
Minnesota families desperately need relief, and that is why Senate Republicans focused this legislative session on helping Minnesotans afford daily life.
Our state is one of the most heavily taxed states in the nation, and Minnesota’s historic $9.25 billion budget surplus is a strong indicator of just how much our state asks of taxpayers. It’s critical to get government spending back under control. And this legislative session, therefore, served as a unique opportunity to give back the surplus in the form of permanent and meaningful tax relief.
To keep more hard-earned money in the pockets of Minnesotans, Senate Republicans put forward our state’s biggest tax cut ever. The landmark tax cut bill would have reduced the first-tier tax rate for all filers from 5.35% to 2.80% and provided a staggering $8.43 billion in relief over the next three years. Further, over 2.4 million filers would have benefited and received an average savings of $759. What a difference it would have made to your family checkbook if we could have gotten that package signed into law.
The Senate’s tax relief bill also directed vital relief at helping working families whose budgets are feeling the greatest pressure of out-of-control inflation. This included support for families with kids in grade school by providing relief on K-12 expenses via the state’s K-12 Subtraction and K-12 Tax Credit. With cost of necessities becoming more and more unaffordable, the legislation also contained provisions that would have provided relief for energy bills, affordable and rental housing, and property taxes.
Additionally, to support Minnesota retirees, the legislation included the full elimination of the Social Security income tax. This is an issue I have been pushing for years and have repeatedly heard from our seniors on. Minnesota is one of just 13 states that still taxes Social Security income, and it is long overdue to stop taxing our seniors twice on this important income.
Small businesses are the heart of communities, and it’s vital to make it easier for these businesses to operate in Minnesota. For this reason, the tax cut legislation contained significant policies to continue Republicans’ support for small businesses and entrepreneurs. To encourage investment in innovative Minnesotan companies, this bill would have expanded the state’s Angel Investor Tax Credit and increased the tax credit for research and development.
All components of the Senate Republicans’ landmark tax cut legislation would have helped address pressing issues facing Minnesotans. Democrats, however, choose to favor their controversial, large and ongoing spending demands over the essential needs of families. It’s evident that the governor and Democrats were not interested in passing a deal that would have benefited all Minnesotans.
From prices at the pump to the cost of replenishing pantry staples, Minnesotans’ budgets are feeling the pressure of out-of-control inflation and struggling to afford everyday life. Government has taken far too much money from taxpayers, and it’s time to give it back. I strongly believe that a permanent and ongoing tax cut would allow Minnesotans to decide how to best spend their hard-earned money to fit their unique lifestyles. A future Senate Republican majority will continue to fight for the needs of Minnesota families.
Contact me
As always, if have questions or concerns on any legislative topic, feel free to contact me any time. You can call me at 651-296-5655 or send me an email at sen.mary.kiffmeyer@senate.mn. It is a privilege to serve as your state senator.
Sincerely,
Mary