In the span of just four years, Minnesota’s spending has increased by 18% and the state is collecting 20% more from taxpayers, compared to only 3% inflation over that same time period. Meanwhile, I often hear about family budgets being stretched to the max by healthcare costs and stagnant wages. Our families need tax relief.
This year, the legislature did its job by passing several new tax relief measures on a bipartisan basis with 89% support of the legislature. The tax bill included:
- Expansion of the working family tax credit
- Student loan tax credits
- Childcare tax credits
- Tax relief on contributions to 529 college savings plans
Unfortunately, Governor Dayton vetoed the tax bill. Legislative leaders have met regularly to discuss the prospects of a special session, but little progress has been made, as the governor has made significant new demands on state spending and has been unwilling to compromise.
One tax relief measure signed into law this session is the exemption of veterans’ pensions from state income taxes. Most states already give tax breaks to veterans, and I’m glad Minnesota will now become a more welcoming place for those who have served our country.
Also, families dealing with medical expenses from a stillbirth will now receive a tax credit for those costs.
Obviously, there’s more to be done. First, we need to repass this year’s tax relief bill in a special session. Going forward, the state is still collecting more money than it needs from families in our district, and spending more than necessary to operate efficiently. I’ll continue to advocate for lower spending and broader tax relief in the future.