Sen. Gene Dornink: Tax relief needs to be a priority
Published 6:10 pm Friday, April 8, 2022
Friends and neighbors,
A historic $9.3 billion government surplus calls for permanent and meaningful tax relief! Minnesotans know how to spend their money better than the government and we need to put it back in their pockets.
With inflation at 40-year highs and working Minnesotans being squeezed more every day by soaring prices for gas, groceries, and energy, my colleagues and I made good on an early session promise to give back the budget surplus with the largest permanent tax cut in state history.
This bill provides permanent and meaningful tax relief for all Minnesotans. Minnesota is one of the highest taxed states in the country. Minnesota’s lowest tax bracket is higher than the highest tax bracket in 17 other states. With a unprecedented budget surplus, this is a significant opportunity to provide real relief to hard-working Minnesotans. Completely eliminating the unfair tax on Social Security Income has been long over-due. As I have mentioned before, Minnesota is only 1 of 13 states that still tax Social Security Income. It is wrong that hard-working Minnesotans were taxed during their careers and are expected to pay taxes on that income again!
This landmark tax bill reduces the first-tier tax rate for all filers from 5.35% to 2.80%, and fully eliminates the state income tax on all Social Security benefits. The bill provides taxpayers with a much needed $8.43 billion in relief over the next three years.
The Social Security Income tax hits more than 407,000 Minnesota filers. None of the states that border us — Iowa, Wisconsin, Michigan, and South Dakota — tax Social Security income. Eliminating the Social Security tax would put $1.6 billion back into the hands of beneficiaries, with an average benefit of $1,254.
I will continue the fight for meaningful and permanent tax relief because this is your money, and you deserve to keep it in your pockets.