Package provides $4 billion in relief to help families, local units of government, and ensures fiscal stability
SAINT PAUL, Minn. – On Tuesday, in a 34-33 vote, the Minnesota Senate passed $4 billion in tax cuts for families, seniors, and those who need it most, while also providing millions of dollars in local government aid to cities and counties.
“I have heard again and again from my constituents, that they want to see their state government function and deliver a balanced and responsible budget that includes key investments and tax relief for those who need it,” said Senator Liz Boldon (DFL-Rochester). “This tax bill delivers the largest tax cut in state history, and prioritizes the needs of those who need it most: working families, seniors, and those who have been hit hard by rising costs. Together with the generational investments we are making in education, health care, public safety, and housing, we are making Minnesota the best state for families, workers, and seniors.”
Proposals in the Senate tax proposal, HF1938 include:
- $1 billion in rebate checks, with up to $558 for married or joint filers who make under $150,000 and $279 for single filers who make under $78,000.
- Over $1 billion in reductions of taxes on Social Security income, providing savings for up to 322,000 Minnesotans who currently pay
- $907 million for the Great Start Childcare and Dependent Care Credit to help pay for the costs of childcare
- $1.34 billion for the Child Tax Credit for Minnesotans making under $80,000
- $325 million in public safety aid
The Senate and House will now need to reconcile the differences between their bills in conference committee.