Dear Friends and Neighbors,
We are in the final days of the 2018 Legislative Session and continuing to work hard! The State Government Finance Committee, which I serve on, met this morning and passed the most comprehensive pension reform bill in the history of our state. The House and Senate have each passed complete supplemental spending and tax bills. Conference reports have been generated and are now in the process of being negotiated in Conference Committees.
Tax Conformity Bill Passes the Minnesota House of Representatives
Last Monday, the House passed its tax legislation on a bipartisan vote of 90-38. The House tax proposal simplifies Minnesota’s tax code taking full advantage of federal tax reform while providing additional tax relief to middle-class Minnesotans. Our proposed legislation also delivers the first income tax rate cut for Minnesotans in nearly two decades by reducing the second tier income tax rate while preserving many of the tax breaks Minnesota families use. The House is committed to getting a tax conformity bill signed into law this year so Minnesotans won't face hassles and headaches when they file their taxes next April. Without these critical reforms to Minnesota’s tax code, it is projected that as many as 969,490 Minnesota tax filers could face a higher tax bill.
As a result of House Republicans’ proposal, more than 2.1 million Minnesota filers will benefit from a tax cut in tax year 2018. Highlights include:
- Helping middle-class Minnesotans keep more of what they earn by cutting the second-tier income tax rate from 7.05% to 6.75% by tax year 2020. This would mark the first income tax rate reduction in Minnesota since 2000.
- Lowering taxes for people at all income levels by increasing the standard deduction for all filers.
- Protecting families by preserving a state personal and dependent exemption of $4,150.
- Encouraging affordable homeownership by allowing a state-itemized deduction of up to $30,000 in property taxes.
- Supporting hometown businesses and farmers by reinvesting extra revenue from corporate tax changes into Section 179 conformity and overall rate reductions.
In contrast to our legislation to simplify and reduce taxes, an analysis conducted by the Minnesota Department of Revenue revealed that tax changes proposed in Governor Dayton's budget would raise taxes on Minnesotans of every income level, and make Minnesota's tax code more regressive. This is the last thing our state needs to do.
Governor Dayton's proposal was simply a non-starter with me and my legislative colleagues. Given the historic tax relief passed by Congress in 2017, a current budget surplus in Minnesota, and yesterday’s announcement by the Department of Management and Budget (MMB) that the state’s general fund revenues were $252 million above the forecast amount for April 2018, we look forward to landing on a final tax bill that looks much more like our plan than that which was proposed by the Dayton Administration.
Chief Author of Two Bills with Unanimous Support
Earlier this month, the Minnesota House unanimously passed my bill to make changes to the Commission of Deaf, Deafblind, and Hard-of-Hearing Minnesotans. These changes make the Commission more efficient by allowing it to enter into contracts that currently require administrative hurdles. The bill also changes the lengths of terms board members serve, how many terms they can serve, the Commission’s duties, and establishes a new executive committee.
I was honored to have been asked to carry this legislation to help the deaf, deafblind, and hard-of-hearing community in Minnesota. The changes made to the Commission in this bill will allow it to advocate more effectively for and enhance the lives of the 20% of Minnesotans who experience hearing loss – a much larger number than most are aware. With unanimous support in the House and Senate, and a signature by the Governor earlier this week, I am proud to announce my bill is now law!
My second stand-alone bill, which was calendared on the House Floor yesterday, also passed unanimously and expands upon the successful ‘Job Order Contracting’ legislation I authored in 2016. It increases the number & size of contracts awarded (up to $250,000) to Veteran, Women & Minority-Owned Small Business in Hennepin County to ALL 87 Counties in Minnesota. The program has been a success in Hennepin County in awarding more contract to small businesses (instead of to the big contractors, which had previously been the case), and will now offer greater opportunities to small, independently owned businesses across the State of Minnesota.
Rep. Pugh and the "All-Green" for her two bills on the House Floor this month.
Statehood Day
Today marks the 160th anniversary of Minnesota becoming a state on May 11th, 1858. We’re fortunate to live in a state and country that afford us so many freedoms and protections. These photos were taken earlier today inside the Capitol Rotunda of our gorgeous Capitol! This is the only day each year in which the illuminated crystal ball is lit -- and what a spectacular sight it was!
The Capitol Chandelier has 92 bulbs surrounded by 40,000 crystal beads strung together. It is traditionally lit once per year: on Statehood Day.
Thank you for the honor and privilege you have granted me to serve you and your families in the Minnesota House of Representatives. If you would like to get in touch with me, you can email me at rep.cindy.pugh@house.mn or call my office 651-296-4315.
This weekend is both Mother's Day and the State’s Fishing Opener. So Happy Mother’s Day to all the moms in our district and “Good Luck” to everyone hitting the water this weekend too!
Sincerely,
Cindy