ST. PAUL, Minn. – Today, State Senator Jim Carlson (DFL-Eagan) voted for the bipartisan Tax Relief and Budget Equity bill. The bill will provide approximately $443 million in tax breaks for hardworking families and businesses. The bill passed with an overwhelming vote of 58 to 5.
“This bill makes a commitment to sound fiscal policy and responsible budgeting. Last year we put together a comprehensive budget that provides economic stability and a solid financial future. With this tax bill, we are putting Minnesota on course for long term fiscal health. Today we are supporting families and businesses while offering targeted investments in our economic priorities,” said Sen. Jim Carlson
Specific tax relief for Minnesota Individuals and families include:
· Marriage Penalty: By getting rid of the marriage penalty, married couples in Minnesota stand to save an average of $115 starting next year. This is targeted middle-class tax relief, as more than 80% of those eligible have an annual income under $100,000.
· Working Family Credit: Increasing the Working Family Tax Credit for 331,000 Minnesotans who receive these credits and expanding the credit for 16,000 more Minnesotans will provide an average benefit of $334 per household.
· Dependent Care: By increasing the dependent care credit for low and middle income families with daycare expenses 26,000 people, including many single parents, will save an average of $80 a year.
· College Debt Relief: 30,000 recent college graduates will save an average of $125 by being able to deduct the interest paid on their student loan payments.
· Adoption/Tuition Credits: Minnesotans whose employers have helped pay for adoption expenses or tuition will be able to exclude a portion of those benefits from their taxable income for 2013 – a big change for those working to build their families or expand their knowledge.
· Teachers: Minnesota’s teachers often spend their own money to ensure students have the resources they need. Now they will be able to deduct up to $250 of their own money that they use for classroom expenses.
A large component of the bill also provides tax relief for Minnesota Businesses.
Some of the specific tax relief for Minnesota businesses includes:
· B2B Taxes: Eliminating sales tax on commercial and farm equipment repair, warehousing storage and telecommunications equipment will reduce costs for thousands of Minnesota businesses.
· The Angel Investment Tax Credit: A study found that in 2012 this credit spurred over $72 million in private investment. This bill expands this credit and makes it better by ensuring that Greater Minnesota businesses and those owned by women and minorities have a better shot at benefitting from these investments.
Additionally, this tax package includes an increase of $150 million to support Minnesota’s budget reserve. According to Minnesota Management and Budget (MMB) the state’s current budget reserve is too small. By increasing the amount of money in the state’s ‘rainy day fund’, the long-term economic foundation of Minnesota is even stronger.
“Minnesota should be seen as an example of how to manage a state. Our years of reckless fiscal policy, poor planning, and disregard for the future are behind us. I am happy to continue to work to create strong policy that lays a foundation for success in both the short-term and the long-term,” said Sen. Carlson
For information on this or any legislation, please contact Sen. Jim Carlson at 651-297-8073 or by email at email@example.com.