The Republicans in the Minnesota Senate are pushing for a big tax cut for taxpayers, but members of DFL in the Legislature are not buying it.
The Senate passed an $8.4 billion tax cut bill Thursday. Legislative leaders, however, realize that tax plan could look very different when the final version emerges. But Republicans such as Sen. Gary Dahms of Redwood Falls are not giving up.
“After years of over taxation, Minnesotans deserve permanent ongoing tax relief,” he said in a statement. “We eliminate the unfair double tax on Social Security and cut income taxes for all Minnesota taxpayers. At a time of historic inflation, it is critical we get money back into the pockets of hard working Minnesotans and deliver meaningful tax relief.”
Democratic minority leader in the Senate, Melissa Lopez Franzen criticized the Republican plan is “irresponsible and costly. She said it squanders the chance to use to use the unprecedented $9.25 million budget surplus to help those who really need it instead of those at the top of the income scale.
House Democrats have proposed a tax plan one-third the size of the Senate’s that would deliver money through income-based credits, existing property tax aid programs and a smaller-scale rebate.
Meanwhile, there’s also the plan that is being pushed by Gov. Tim Walz. His proposal expands education and family care credits along with a one-time rebate that would send up to $1,000 to 2.7 million households.
Sen. Ann Rest, DFL-New Hope, tried to put those $2 billion in rebates in place of the Republican-backed bill, but the Senate rejected the move.
Senate Taxes Committee Chair Carla Nelson, R-Rochester, is not a fan of the Walz plan.
“I think it’s insulting to think Minnesotans would prefer a one-time check as opposed to ongoing tax reform, ongoing tax relief,” she said.
We agree with Nelson that taxpayers would prefer paying less taxes than a one-time small refund check. Especially, with Minnesotans are facing rising gas prices and high inflation, tax relief would be the silver lining during a difficult situation.
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