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State Representative Diane Loeffler
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4219
For more information contact: Ted Modrich 651-296-5809
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REPUBLICAN BILL WOULD GIVE BUSINESSES A TAX CUT AT EXPENSE OF SENIORS & DISABLED
ST. PAUL – Today, the House Taxes Committee will hear HF 1914, a bill that would raise taxes on over 300,000 Minnesotans, including 89,000 seniors and disabled, by cutting $70 million from the Renters’ Credit to fund tax cuts for corporations and large businesses.
The Renters’ Credit is a property tax refund program that helps approximately 300,000 Minnesota households. More than 25 percent of those who receive the credit are seniors and people with disabilities. The average tax increase if the Republican plan became law would be $221.
Rep. Diane Loeffler (DFL – Minneapolis) sits on the Taxes Committee and the Property and Local Tax Division.
“The Republican majority is choosing to give big corporations a tax cut while sticking grandma with a tax hike," said Rep. Loeffler. “Large, out-of-state businesses are amongst the big winners in this proposal and the losers are seniors, the disabled, and many renters in Minnesota. These are bad priorities for our state’s future.”
During the past special session the Renters’ Credit was cut by $26 million — a 13 percent cut. It resulted in nearly 300,000 Minnesota households seeing an $87 cut on average and nearly 7,300 households lost their renters credit entirely. In addition, property taxes on apartments have skyrocketed due to the elimination of the Homestead Credit, causing rising rents and even more pain for renters.
Under this bill, another 74,000 households would lose their entire property tax refund, which is almost 25 percent of those who participate. For those still getting the credit, it would mean they lose another $221 on average — in addition to the $87 already cut.
“That’s a significant hit to anyone living on a fixed income, students struggling with high tuition, or families that live paycheck to paycheck,” said Loeffler. “Taking money out of the pockets of renters makes it harder for seniors and working families to make ends meet. It’s absolutely the wrong direction – especially since property taxes increased so much last year due to Republican passed budget. We do need property tax relief, but big corporations shouldn’t be first in line on our priority list.”
The Renter’s Credit also helps boost Minnesota’s economy. Minnesotans who receive the Renters’ Credit spend their property tax refund on necessities like school supplies, groceries, prescriptions and car repairs. The Renters’ Credit puts money directly into stores and businesses and boosts local economies.
“Legislators need to have clear priorities and low and moderate-income renters are already shouldering more than their fair share of the property tax burden,” concluded Rep. Loeffler. “Targeting seniors and the disabled for corporate tax relief is simply unconscionable.”
News Items
- House passes Higher Education Bill - (Posted: May 2 2013 2:42PM)
- The Affordable Care Act and Minnesota - (Posted: 2012-07-03 00:00:00)
- REPUBLICAN BILL WOULD GIVE BUSINESSES A TAX CUT AT EXPENSE OF SENIORS & DISABLED - (Posted: 2012-02-14 00:00:00)
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