Friends and neighbors, 

Throughout the legislative session, I have consistently provided updates on key legislation passed by Senate Republicans to get Minnesota on the right track. My colleagues and I recently approved an important public safety bill to reduce crime and hold criminals accountable, and an education bill to reverse Minnesota’s chronically declining literacy scores. And just this week, my Senate colleagues and I also passed substantial legislation to help Minnesotan’s afford everyday life.

Last month, the Senate passed the largest tax cut in state history, and our strong commitment to give back our state’s massive surplus continued through a second round of historic tax relief. The second tax bill supports working families, small businesses and retirees struggling with rising costs and burdensome taxes. Notably, the bill includes the top two tax priorities for Senate Republicans this year – a full exemption of the Social Security benefits from state taxes and a significant reduction of the lowest income tax rate. 

Minnesota is one of just 13 states that still taxes Social Security benefits. This tax impacts more than 407,000 Minnesota filers starting at $25,000 in income. Repealing the Social Security tax would put $1.6 billion back into the hands of beneficiaries and provide an average benefit of $1,254 every year. This is an issue I have regularly heard from constituents on and one that I am elated to see pass in this legislation.

Additionally, the second tax bill passed by the Senate reduces the first-tier tax rate for all filers from 5.35% to 2.80%. Our state’s lowest tax bracket is higher than the highest tax bracket in 24 other states. This alarming statistic along with the huge budget surplus makes it clear that Minnesotans are being greatly overtaxed. It’s critical to give this money back to hardworking Minnesotan families, and through the historic Republican tax cut rate, over 2.4 million filers would benefit and receive average annual savings of $759. Further, a typical family making $100,000 would see a savings of $1,064 every year.

To further support families facing record inflation, this bill also includes a variety of provisions offering much needed tax relief to families. This includes 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. Additionally, a provision is included to allow for 529 College Savings Plans to be used for K-12 tuition.

The Senate’s second tax cut bill also continues Republicans’ commitment to Minnesota’s small businesses by making it easier for these businesses operate in our state. A highlight includes extending Minnesota’s Angel Investor Tax Credit and increasing the tax credit for research and development. This will encourage investment in groundbreaking, innovative companies and support our Minnesotan entrepreneurs. 

In the final two weeks of session, I remain committed to addressing the issues most important to Minnesota and our local communities.

I want to hear from you, my constituents, on issues that are important to you. Please feel free to reach out to my office with any concerns or ideas you may have. As session moves forward, I will keep your thoughts and concerns in mind as legislation comes before me. You can contact my office at sen.bruce.anderson@senate.mn or 651-296-5981.

Sincerely,

Bruce Anderson