ST PAUL, Minn. — One day after Governor Tim Walz laid out his budget priorities based on Minnesota's projected $17.5 billion surplus, House and Senate Republicans took the wraps off a tax relief program built on code changes, child credits and rebate checks.
Authors say the "Give it Back" plan will provide $13 billion in tax relief for state residents over two years, with both immediate and long-term impacts. On the short term, the plan includes $5 billion in rebate checks, with the money coming from the surplus. Single filers would expect $1,250, while joint filers would collect $2,500. There is also a one-time child tax credit of $1,800 for every child under the age of 18.
The GOP is targeting permanent relief by eliminating the tax on social security, a move Republicans say will save nearly 473,000 Minnesotans an average of $1,277 each year. The Give it Back plan would also reduce the two lowest tax tiers in the state by 1%, and adjust the homestead market value exclusion.
“Democrats may not think tax relief is a priority, but to hardworking Minnesotans it is,” Republican House Minority Leader Lisa Demuth (Cold Spring) said in a released statement. “Our state government is swimming in cash, meanwhile Minnesotans are struggling to afford their lives. With a $17.5 billion surplus, if we can’t give tax relief to Minnesotans now, when can we? This is the perfect opportunity to give bipartisan tax relief and put more money back into Minnesotans’ pockets. There is no excuse not to get this done.”
Well, there actually is one. With Democratic majorities in both the House and Senate, Republicans face an uphill battle pushing the plan through if their colleagues across the aisle stay united. Governor Walz is calling for increased spending in the areas of education, children, health and safety, while also promising to lower costs, cut taxes and send rebate checks to Minnesotans across the state.
When asked about the GOP's “Give It Back” slogan, Walz responded with “join the crowd.” The governor added that it “makes no sense” to eliminate Social Security taxes for the wealthy.
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