Hauschild secures $325 million in Police Funding in Senate Tax Proposal
SAINT PAUL, Minn. — Senator Grant Hauschild (DFL—Hermantown) said that the Senate Taxes Bill includes his child care tax credit, a $1.1 billion Social Security tax cut, $325 million in public safety investments, and tens of millions of dollars in aid for counties and local governments across the Northland that will help reduce burdensome property taxes for Minnesotans.
“This is the largest set of tax cuts in state history,” said Senator Hauschild. “This proposal will put money back in Minnesotans’ pockets, lower costs for hard-working families, and completely eliminate Social Security income taxes for the vast majority of Minnesota’s seniors. As a new member of the Taxes Committee, I prioritized the Social Security tax elimination for our seniors, the child tax credit for our working families, and funding for our public safety officials and police. All of those items are funded at historic levels in this bill, and I’m proud of the bill we’ve put together.”
The Child Tax Credit, chief authored by Senator Hauschild, invests $907 million to help Minnesotans pay child care costs. Minnesotans earning up to $160,000 could qualify for a maximum tax credit of $12,500. Couples earning up to $200,000 continue to qualify for a phased-out credit. Families with young children ages 0 to 5 receive a larger credit to compensate for their extraordinary child care costs.
The Social Security Tax Cut will cut Social Security taxes by $1.1 billion over four years. This will completely eliminate the tax for individuals earning up to $76,000 and couples earning up to $100,000. Under this provision, 76% of Minnesota’s seniors will pay $0 in Social Security income taxes. Some public sector employees who receive public pensions rather than Social Security benefits (such as certain firefighters, police officers, state troopers, and teachers) will be able to subtract up to $25,000 of those benefits if they make less than $120,000.
The Public Safety Investments will address public safety needs across Minnesota to the tune of $325 million. $300 million will be used in one-time funding to support local law enforcement needs and $25 million will be allocated as one-time grants over the next five years to support criminal investigations and mental health crisis response.
Watch Senator Hauschild’s comments here and the full Senate Taxes Committee hearing here. View the Senate Taxes bill on the Senate website.
Photo courtesy of Senate Media. Description: Senator Hauschild (left) speaks with Senate Taxes Committee Chair Ann Rest (right) in the back of the chamber on the floor of the Minnesota Senate.