Senator Newman: Tax cut plan gives surplus to all Minnesota taxpayers

Today, the Minnesota Senate Republican majority announced a tax cut plan that ultimately returns the state’s estimated $1.3 billion budget surplus to taxpayers. The multifaceted plan includes a series of tax cuts aimed at benefitting all earners and families.

“If you pay income tax, you will benefit from this plan. With a budget surplus, we have a chance to give the surplus back to the taxpayers of the State of Minnesota,” said Senator Scott Newman (R-Hutchinson), chair of the Senate Transportation Finance and Policy Committee. “We are among the highest taxed states in the nation and Minnesotans are feeling it. By making investments in income tax cuts, eliminating Social Security taxes, full Section 179 conformity, and more, we can finally provide Minnesotans some relief.”

The proposal includes more than $1 billion in total tax cuts, including:

  • A reduction in the lowest income tax rate, which reduces everyone’s income tax debt;
  • An expanded K-12 education tax credit, specifically helping parents of school-age children save money when they file their taxes;
  • Completely eliminating the income tax on Social Security benefits, bringing Minnesota in line with the other 37 states that do not tax Social Security benefits as income;
  • Full conformity with Section 179 of the federal tax code, allowing farmers and small business owners to deduct large equipment purchases;
  • Expanding the Angel Tax Credit, providing greater incentive to invest in Minnesota companies;
  • Reforms to school aid, reducing the property tax burden on farmers and landowners in school districts; 
  • Reallocating more mortgage and deed tax revenue to affordable housing programs;
  • Property tax classification and rate reductions, allowing more people to realize the dream of homeownership; and
  • Reforms to charitable gaming rules, allowing local charities to invest more money in their communities.

The legislation awaits consideration by the Senate Committee on Taxes.

Senator Scott Newman represents McLeod, Meeker, Sibley, and Wright counties in the Minnesota Senate. He serves as chair of the Senate Transportation Finance and Policy Committee.