Hello Friends,
90% of Minnesotans will pay less in taxes
It was great to hear news this week that tax reforms we passed two years ago will result in lower taxes for 90% of all Minnesotans. The Minnesota Department of Revenue’s annual Tax Incidence Study shows that those earning less than $140,000 will be paying less in overall taxes, as a portion of their income, than they did in 2012.
The study credits a few reasons for the decrease in overall taxes. First, wages are starting to grow for Minnesotans and are anticipated to outpace any growth in new taxes. Second, the budget passed by Governor Dayton and the state legislature has helped middle class taxpayers. While the top 2% of earners will pay more income tax and corporations lost special tax perks, we provided $177 million in direct property tax relief, benefitting nearly 1 million Minnesotans. In addition, our budget cut income taxes for middle class Minnesotans through federal tax conformity, which benefitted over 1 million Minnesotans.
Combine this good news with our strong economy and a $1.9 billion surplus, and it turns out that partisan claims that tax reforms we passed would cripple the state’s economy just weren’t accurate. We should keep pursuing policies that expand our economy for hardworking Minnesotans.
Oil Train Safety a Priority
For the past several years we have seen more and more oil trains travel through our state. They travel through Columbia Heights, St. Anthony, and New Brighton. Nationwide, there have been five oil trains derailments in the past five weeks alone. One of these trains, which derailed in Illinois, traveled right through Minnesota. Members of the press mapped the most endangered communities in Minnesota online using MnDOT data.
In 2014, we took steps to address safety preparedness, and our fire departments have been involved in this preparedness, but there’s much more to do to keep our communities safe. This week, Governor Dayton and legislators introduced a proposal to further improve oil train safety in Minnesota. The plan would:
-reduce the likelihood of catastrophic fires involving crude oil trains;
-improve public safety in rail corridors across the state;
-provide property tax relief to communities who are confronting rail safety issues;
-continue efforts to improve fire safety preparedness in communities across the state.
The legislation would pay for these proposals by asking railroad companies to pay for safety improvements through assessments and property taxes. Some railroad companies have seen their profits increase by as much as 600% in recent years, and it is reasonable to ask them to pay a fraction of those profits to keep our communities safe.
So far this session Republican House leadership has sided with railroad companies in opposition to these initiatives. It’s my hope they will join us in addressing what really shouldn’t be a partisan issue.
Governor Proposes Tuition Freeze
Governor Dayton has released an updated budget proposal. One key component of his plan is to maintain tuition freezes at Minnesota public universities. $288 million would be allotted for public colleges and universities in order to maintain an undergraduate tuition freeze for two more years. The money would keep pace with inflation and be spent on operating costs. Officials from the University of Minnesota and MNSCU have backed the proposal, along with student groups and teachers. It’s an important step that will help to rein in the exploding costs of higher education, and keep college affordable for many young Minnesotans.
Public Safety Surplus Equipment
With Columbia Heights Fire Chief Gary Gorman, I have been moving along legislation to let municipalities donate surplus equipment to non-profit organizations. If equipment is no longer serviceable to the city and has little-to-no resale value, the department could donate the equipment instead of scraping it. The fire chief of Brooklyn Center has participated in setting up fire services in West Africa with donated equipment. Thank you, Gary, for a great legislative idea!
Please feel free to contact me directly with your legislative ideas, comments, and questions. You can reach me by phone at (651) 296-4331 or by email at rep.carolyn.laine@house.mn. Thank you for the honor of serving you at the State House.
Best Regards,
Carolyn