Minnesota Gov. Proposes Tax Credit For Millions of Families

Minnesota Governor Tim Walz (D) has proposed that the state use its budget surplus to deliver tax relief to millions of families.

Walz has proposed a tax credit that would deliver relief of up to $2,600 to households throughout the state. 

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According to a new report about Walz’s proposal, which was issued Tuesday, January 24, this is the largest tax cut package in state history.

The tax cuts are part of a two-year budget package totaling $65 million. Walz said, “This is a fair budget that will continue to create growth, reducing taxes on Minnesotans while improving all aspects of their life.”

If the state legislature approves the budget, the tax credits will equal $2,000 for families with incomes below $150,000, and $1,000 for single filers making under $75,000 annually. They will be exempt from federal taxes according to the current proposal. 

Additionally, families can receive a $200 per dependent, up to three individuals. 

Walz’s budgetary plan also includes expanded tax credits for parents and for child care costs. He said a middle-class family of four could receive as much as $10,000 in tax credits. 

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The budget is facing opposition from Minnesota Republicans, however. GOP leaders have expressed concerns about the $11 million jump from the state’s current $54 million budget.

“We’ve got a surplus of $17.6 billion currently. This budget spends all of that. Not only that, but it grows government by 25%,” Senate Minority Leader Mark Johnson, of East Grand Forks, recently told the press. 

The surplus is the result of tax revenues that exceeded expectations and lower spending overall. 

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Democrats attest that this allows for major one-time expenditures, like the Governor’s proposed tax cuts.

What do you think about Governor Walz’s tax credit plan?

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Feature Image Credit: Adam Bettcher/Getty Images

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