ST. PAUL – Noting that the bill provides long-overdue tax relief to Minnesotans, State Representative Jason Rarick (R-Pine City) joined the majority in the Minnesota House recently to approve a $1.35 billion tax relief bill – more than half of which is targeted to the middle class.
“We keep hearing about the state having a surplus, and I like to remind everybody a surplus means we overtaxed people, so we need to get the money back to those who overpaid and most need it,” Rarick said.
Rarick highlighted a number of provisions that will benefit middle class Minnesotans. Under this proposal, by 2019 nearly 284,000 senior citizen tax returns (single and married filing jointly) would be eligible to receive a tax exemption on their social security benefits for an average tax reduction of $710. A family of four making $50,000 a year will receive an additional $1,200 towards their child care expenses, while 77,500 students will receive an average of a $640 reduction in their taxes through a tax credit for student loan payments.
Rarick said providing relief from a statewide general tax, which is basically an extra tax, will assist every Minnesota small business owner. He also noted that 240,000 farmers could receive property tax relief to reduce their disproportionate share of school district debt service.
“I’m very pleased we were able to pass this bill off the House floor, and I’m hopeful we can convince Governor Dayton this year of the need for significant tax relief for middle class Minnesotans,” Rarick concluded.