Senate Majority Leader Erin Murphy, Senate Taxes Chair Ann Rest Highlight Most Equitable Tax System in All 50 States

ST. PAUL, Minn. – Senate Majority Leader Erin Murphy (DFL-St. Paul) and Senate Taxes Chair Ann Rest (DFL-New Hope) said today that changes implemented last year, have produced the most equitable tax system in the country, with the lowest burden on low- and middle-income earners of all 50 states, according to a national study by the Institute on Taxation and Economic Policy.

 Minnesota parents, Social Security recipients, property owners and people who receive pensions are now experiencing the benefits of the 2023 legislation.  The tax bill also invested $300 million to address urgent public safety needs in every Minnesota community, they said.  

 “By listening to Minnesotans, the DFL majorities created the most equitable tax system of any state in the nation,” said Majority Leader Murphy.  “From reducing child poverty, to helping family budgets, we have prioritized the needs of Minnesotans in all of our work, and we will continue to build on that as we move forward.”

 “Minnesotans are seeing the many benefits enacted by the Legislature, including a nation-leading Child Tax Credit that is helping nearly 400,000 children across the state and is reducing our state’s child poverty rate by one-third,” said Senator Rest, the chief Senate author of the tax legislation passed last year. “We also invested $300 million to address urgent public safety needs that will go to every Minnesota community, and hundreds of thousands of seniors will see Social Security tax cuts.  I’m very proud of the work we did on behalf of people across our state.”

 The benefits in the 2023 tax legislation include:

  • Nearly 400,000 children up to age 17 have already benefitted from the $1,750 per-child refundable tax credit, with no limit on the number of children claimed. The average credit for the families that claim it is $2,510, with a total of $447 million already claimed this tax season.  The credit will cut child poverty by 33 percent.
  • The elimination of state taxes on Social Security for 322,000 Minnesota seniors who will save about $734 annually.
  • Minnesotans receiving public pensions instead of Social Security because of the jobs they worked (state troopers, some teachers and firefighters) will be able to subtract up to $25,000 of their pensions from taxable income.
  • Property tax relief for homeowners, renters, farmers and seniors.
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Erin Murphy represents Senate District 64, which includes portions of the Saint Paul community.

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Ann Rest represents District 43, which includes portions of the western suburbs of Hennepin County in the Twin Cities metro area.

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