House and Senate Republicans came together Tuesday to roll out their tax package to give immediate and lasting relief to Minnesotans, said Republican Senate Tax Committee Lead Bill Weber of Luverne in a press release. The “Give It Back” tax plan provides $13 billion over two years in permanent tax cuts and one-time rebates.
The tax package includes tax changes for immediate tax relief today with one-time rebate checks using $5 billion of the state’s surplus funds and $3.5 billion for a one-time child tax credit available for two years. The checks are estimated to be $1,250 for single filers, and $2,500 for joint filers. The $1,800 tax credit per child under the age of 18 comes without strings attached on its purpose or use.
Permanent relief comes in the form of the elimination of the tax on Social Security for a cost of $1.26 billion to provide 472,902 Minnesotans with an average tax reduction of $1,277. An additional $3 billion in permanent tax relief comes in reducing both the first and second tier tax rates by 1% each to 4.35% and 5.8% respectively. Also, an adjustment of the homestead market value exclusion would give $35 million a year in relief.
Said Weber: “With a historic surplus, we really need to start giving this money back to the people. These permanent tax cuts and one-time rebates will help people afford their lives in a time a historic inflation and uncertainty in the economy. They are sustainable, they should have bipartisan support, and they are the right thing to do for Minnesotans.”