Dear neighbors,
According to nonpartisan fact checkers at Minnesota Public Radio’s PoliGraph blog, most middle-class Minnesotans are going to be seeing lower taxes as a result of the Legislature’s actions during the 2013-14 session.
You might ask, didn’t the Legislature raise taxes? The truth is we did raise some taxes, but largely by closing corporate tax loopholes and asking the wealthiest 2% of Minnesotans to pay 2% more in income taxes.
The Legislature used the new revenue to eliminate a $627 million budget deficit and make new investments to grow the middle class, such as providing all-day Kindergarten for every child, freezing tuition for college students, boosting property tax refunds for homeowners and renters as well as providing incentives for business expansions.
Thanks to the first honestly balanced budget in ten years, as well as a much improved economy, Minnesota generated a $1.2 billion surplus – and I made it my top priority to put middle-class Minnesotans first with middle-class tax cuts.
The facts show our approach is working well. Minnesota regained all the jobs lost during the Great Recession, businesses are expanding and we have one of the lowest unemployment rates in the country.
To learn more, read on or click here to watch my latest video about how the Legislature put the security of middle-class Minnesotans ahead of big corporations and wealthy special interests.
Tax cuts for middle-class Minnesotans: The Legislature enacted tax cuts for more than one million middle-class Minnesotans through federal tax conformity. As a result, married couples, working families, homeowners, college students and more will pay less in taxes.
Lower property taxes: Property taxes more than doubled over the last decade, with increases disproportionately hurting middle-class families, senior citizens and small businesses. The Legislature reversed that trend by delivering the first statewide property tax decrease in years thanks to our $177 million investment in direct property tax relief for homeowners and renters. Here in Dakota County, over 27,000 homeowners and over 7,000 renters will receive bigger property tax refunds this year.
Asking the richest 2% to chip in 2% more: For many years, big corporations and the wealthiest 2% of Minnesotans (who earn an average $617,000 per year) have seen no tax increases, while our budget deficits were balanced on the backs of property taxpayers, students and our seniors. We changed course to focus on priorities that Minnesotans broadly share. In order to help eliminate a $627 million deficit and make investments in education, job creation and middle-class property tax relief, the Legislature asked the wealthiest Minnesotans to pay just 2% more in income taxes.
Closing Corporate Tax Loopholes: For years, corporate tax loopholes have given some large businesses an unfair advantage, sheltering them from paying some state taxes. We closed those loopholes, providing over $250 million to invest in better education and job creation.
After a decade of being squeezed to protect big corporations and the wealthiest Minnesotans, most middle-class Minnesotans are going to be seeing lower taxes while getting more bang for their buck, including bigger property tax refunds, all-day Kindergarten, a two-year college tuition freeze and much more.
By delivering significant tax cuts, the Legislature made important progress toward growing our middle class and providing greater security for Minnesota families.
If you have any questions about changes to our tax system, please contact me by phone at (651) 296-5387 or by email at rep.will.morgan@house.mn.
Sincerely,
Will Morgan
State Representative, District 56B